DESC: The Defense Energy Support Center (DESC), in conjunction with the Assistant Chief of Staff for Installation Management (ACSIM), Army Material Command and Red River Army Depot, Texas, seek to identify responsible potential sources and obtain information in regards to possible privatization of utility systems in accordance with 10 USC 2688, "Utility Systems: Conveyance Authority" for Utility Privatization of the Natural Gas Distribution System at Red River Army Depot, Texas. The potential privatization action will include transfer of ownership, operation and maintenance, and the obligation to serve. The Army will not transfer ownership of land or any land lease interest for Red River Army Depot, TX and will grant easements and leases, with concurrence of the underlying leaseholder where applicable, for access to land associated with each utility system. OBJECTIVE: Should privatization occur, the ownership of the Natural Gas Distribution System and equipment to include, all capital investments, operation, maintenance and repair responsibilities, shall transfer to a publicly or privately owned utility provider. All responsibility for maintaining reliable service, including such items as environmental compliance, operation, maintenance, major systems renovation, construction, equipment, manpower and overhead shall be the responsibility of the new owner. Utility services under the potential contract will not include the commodity itself. INSTALLATION AND UTILITY SYSTEM DESCRIPTION: Note: (1). All technical data and information listed below is to be considered either an estimated quantity or an approximate order of magnitude. Companies responding to this notice of interest are responsible for verification of all inventory data. (2). Companies responding to this notice of interest shall respond to interest in the entire scope of the requirement. The Red River Army Depot is located in Central Bowie County, near Texarkana, Texas. INSTALLATION DESCRIPTION: Red River Army Depot (RRAD, Red River or the Installation) is an U.S. Army Installation located in Central Bowie County, near Texarkana, Texas. Established in 1941, the Installation was initially designated Red River Ordnance Depot. The Installation was combined with the adjacent Lone Star Ordnance Plant in 1943 and the two installations were called the Texarkana Ordnance Center. In 1945 the two installations were designated Red River Arsenal and then once again became Red River Ordnance Depot (1961). The two installations were separated again in 1962 and this installation became Red River Army Depot consists of 19,081 acres, 3 million square feet of covered storage, and 2.9 million square feet of outdoor storage. Its primary responsibility is the rebuild/reconfiguration of the Bradley Fighting Vehicle System including storage, maintenance and demilitarization of ammunition and missiles. Today RRAD operates as a Base Realignment and Closure (BRAC) Installation. A portion of the Installation was determined to be in excess of the Army’s requirement and as such, a portion of RRAD was BRAC’d or transferred to the local Re-use Authority. Today, the BRAC’d area is active and operated by the Red River Re-Use Authority (RRRA). Description of Facilities: The utility systems consists of the following Capital assets: A. Natural Gas Distribution System Description The RRAD natural gas distribution system consists of all appurtenances physically connected to the distribution system from the point in which the distribution system enters the Installation, and/or Government ownership currently starts, to the point of demarcation as defined by the real estate instruments. Generally, the point of demarcation will be the building footprint. The system may include, but is not limited to, pipelines, valves, regulators, and meters. The following description and inventory is included to provide the Offeror with a general understanding of the size and configuration of the distribution system. The Offeror shall base the proposal on site inspections, information in the technical library, other pertinent information, and to a lesser degree, the description following in subsequent paragraphs. Under no circumstances shall the Offeror be entitled to any rate adjustments based on the accuracy of the following description and inventory. The Installation’s existing natural gas distribution system includes approximately 97,638 linear feet of medium and high-density polyethylene, steel, and coated and wrapped steel pipe, 34 main valves, 83 industrial services and 27 residential services. The distribution mains range in size from less than 2 inches to 6 inches in diameter. There are high and low pressure lines that make up the distribution system. Low pressure is approximately 20-25 psi and the high pressure is approximately 50-60 psi. The entire distribution system at RRAD is owned, operated and maintained by the Government. This includes the section of the distribution system located within the BRAC area. According to Installation personnel and as observed from the inventory, approximately 71 percent of the RRAD natural gas distribution system has been replaced or upgraded to polyethylene pipe since 1970. However, some of the original pipeline (installed in 1943) is still in service. The remaining steel and coated and wrapped steel pipe receives no cathodic protection or checks annually. Overall, the system is considered to be in good to excellent condition as rated by the Installation personnel. Several conditions exist that may effect the ownership and operation of RRAD’s natural gas utility system. Some of these conditions include: radio frequency use limitations, special security concerns, non-government operations and tenants and utilities located inside blast perimeters. The Contractor shall comply with all applicable federal, state, and local regulations governing the operation of the Natural Gas Distribution System. REQUIREMENTS: The general goal of the privatization process at Red River is to transfer all Capital assets of the Natural Gas Distribution System to a municipal, private, regional, district or cooperative utility company or other non-Department of Defense entity to own and operate the systems on a long term contractual basis. Specific requirements under the contract will be: (1) the ability to service all areas within Red River Army Depot and all Federal service premises currently served by Government owned systems that are the subject of this requirement. PROCESS: This request is to gather information from interested parties and is an essential step in determining market interest for the privatization of the Natural Gas Distribution System at Red River Army Depot. In order to minimize costs both to potentially interested parties and the government, this notice is issued to determine market interest and feasibility as well as determining marketing strategies for privatizing the utility system. Should insufficient credible interest be identified for a privatization action, it is highly likely that no formal solicitation will be issued. Should interest be determined sufficient, a formal Request for Proposals (RFP) may be forthcoming. Interested parties should provide a statement of interest on company letterhead. The statement of interest must not exceed a total length of 15 pages. The statement shall include as a minimum, the following information: (1) Capability and experience in the ownership, operation and maintenance of similar systems; (2) financial Capability to purchase, upgrade, expand, operate and maintain the utility system; (3) conceptual rate plan (i.e., will charges for utility service be made from existing rates or from rates developed specifically for service at the individual installation(s); (4) discussion of your conceptual basis for a proposed purchase price (Capitalized earnings value, replacement cost new less depreciation, original cost less depreciation, or other); (5) understanding of the federal, state and local environmental laws and regulations and familiarity and experience with environmental compliance procedures and regulations for the State of Texas and US Environmental Protection Agency Regions; (6) Company point of contact, phone number, and e-mail address. SITE VISIT AND DATA: Neither a site visit nor the provision of additional data on the utility systems is considered necessary for the preparation and submittal of statement of interest. If a site visit and the provision of additional data are later determined necessary, notification will be provided by way of an amendment to this announcement. DUE DATE: Statements of interest must be submitted to Defense Energy Support Center (DESC-EC) by 3:00 P.M., Eastern Standard Time on Friday, August 27, 2004. Sources may address responses to: Defense Energy Support Center, 8725 John J. Kingman Rd., Room 3830, ATTN: Mily Le or Christine Bond-Jawish, DESC-EC, Ft. Belvoir, VA 22060-6222. LINK DESC: For future Privatization solicitation information LINKURL: http://www.desc.dla.mil/DCM/DCMPage.asp?pageid=246 EMAIL DESC: For additional information or clarification EMAIL ADD:
[email protected];
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