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Utilities Privatization Program Management Office

Utilities Privatization Program Management Office . Mr. Randy Wolf, P.E. HQ AFCESA/CENU 9 June 2010. What is Utilities Privatization (UP)?. UP results in: 50-year utility service contract for the utility system

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Utilities Privatization Program Management Office

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  1. Utilities Privatization Program Management Office Mr. Randy Wolf, P.E. HQ AFCESA/CENU 9 June 2010

  2. What is Utilities Privatization (UP)? • UP results in: • 50-year utility service contract for the utility system • Bill of sale conveying the electric, gas, water, and sewer systems (signed by SAF/IEI) • Reduces infrastructure (shrinks bases from within) • Supports AF/A7C vision 20/20 by 2020 • Leverages industry expertise • Systems maintained and operated to Industry Standard • Stabilizes utility costs • Results in a predictable (annual) utility cost • Utility O&M cost becomes a “must-pay” bill • Centrally managed program • 138 systems privatized to date • Remaining 182 systems evaluated/solicited by FY13 UP remains OSD preferred method for utilities revitalization

  3. UP • What it does? • Uses private capital and industry expertise to upgrade & improve utility system assets ravaged by years of under funding • Seeks to divest the Services of utility functions that can be performed more efficiently and effectively by industry in order to allow the Services to refocus resources on core defense missions. • What isn’t included? • The commodity is not part of the privatization effort. Existing commodity contracts remain in force. • UP does not transfer any land on which a system resides.

  4. Authority • What Authority governs the transfer of assets? • Authority to convey a utility system is contingent upon meeting two statutory requirements (10 U.S.C. 2688): • Receipt of fair market value • The long-term economic benefit of the conveyance exceeds the long-term economic cost to the United States, and the conveyance will reduce the long-term costs to the United States for utility services.

  5. The Process • What is the process? • The Government solicits proposals from industry to purchase the physical infrastructure • Then contracts with a selected contractor to obtain long-term utility services if the conveyance is to the benefit of the Federal Government. The contract is covered under the Federal Acquisition Regulation (FAR). • Who handles Contracting? • Defense Energy Support Center (DESC), Ft Belvoir, VA • What type of contract? • Firm Fixed Price – Economic Price Adjustment

  6. UP Program Approach Phase I - Project Plan & Feasibility Analysis Phase II - Comprehensive Analysis Phase III Implementation • Environmental Impact Analysis Process • Categorical Exclusion (CATEX) • Real Estate Documentation • Transition Plans • Selection Plan • Evaluation Criteria • Draft RFP • Issue RFP • Evaluate Proposals • Certified Economic Analysis • Complete Real Estate Documentation • Complete Contract • Submit for Congress Notification • Award • Environmental Baseline Survey • Establish Privatization Team • Define Requirements • Project Identification • Revalidate Readiness • Draft Business Plan • Regulatory Review • Market Review • Feasibility Report • Operational Impact Analysis • Preliminary Economic Analysis • Go/No-Go Decision Transfer

  7. Joint Base San Antonio (JBSA) • 502th ABW Installations Included • Lackland AFB • Lackland AFB Training Annex • Randolph AFB • Ft Sam Houston • Camp Bullis I -

  8. JBSA Utilities • 15 Utility Systems Included • Electric – 3 • Lackland AFB • Lackland AFB Training Annex • Randolph AFB

  9. JBSA Utilities • 15 Utility Systems Included • Natural Gas – 3 • Lackland AFB • Lackland AFB Training Annex • Randolph AFB

  10. JBSA Utilities • 15 Utility Systems Included • Potable Water – 5 • Lackland AFB • Lackland AFB Training Annex • Randolph AFB • Ft Sam Houston • Camp Bullis

  11. JBSA Utilities • 15 Utility Systems Included • Wastewater – 4 • Lackland AFB • Lackland AFB Training Annex • Ft Sam Houston • Camp Bullis

  12. Installation Utilities • Lackland AFB • Electric: OH 35mi, UG 17 mi, 183 meters, 286 transformers • Natural Gas: Pipe 66 mi, 66 meters • Potable Water: Pipe 54 mi, 68 meters, tanks • Wastewater: Pipe 36 mi, Re-Use 2.5 mi

  13. Installation Utilities • Lackland AFB Training Annex • Electric: OH 25mi, UG 5mi, 150 meters, 54 transformers • Natural Gas: Pipe 5 mi, • Potable Water: Pipe 22 mi, 84 meters, tanks • Wastewater: Pipe 11 mi

  14. Installation Utilities • Randolph AFB • Electric: 50 UG, 694 meters, 252 transformers • Natural Gas: Pipe 27 mi, 1,020 meters • Potable Water: Pipe 48 mi, 38 meters, tanks including “Taj”

  15. Installation Utilities • Ft Sam Houston • Potable Water: Pipe 106 mi, 1,015 meters, tanks • Wastewater: Pipe 63 mi

  16. Installation Utilities • Camp Bullis • Potable Water: Pipe 13 mi, tanks • Wastewater: Pipe 15 mi, WWTP

  17. Contact Information • Policy Issues: • Catherine Fairlie, 703-604-0550, catherine.fairlie@pentagon.af.mil • Ken Miller, 703-601-0198, ken.miller.ctr@pentagon.af.mil • Execution Issues: • Dan Soto, 850-283-6655, daniel.soto@tyndall.af.mil • Randy Wolf, 850-283-3757, randy.wolf.ctr@tyndall.af.mil • John Goetz, 210-652-1783, john.goetz.ctr@randolph.af.mil • DESC Contracting POC: • Laurie Carlson, 703-767-8127, laurie.carlson@dla.mil

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