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COMMERCE BUSINESS DAILY ISSUE OF MAY 27,1998 PSA#2103

DOPC, ATTN ATZF-DPC-C, BLDG 2746, FORT EUSTIS, VA 23604-5292

R -- MARKET SURVEY -- LMI SURVEY FOR A STUDY ANALYSIS OF THE US ARMY OWNED "CAPTIVE" RAIL FLEET AND MILITARY OWNED TRACK (LOCOMOTIVES, RAIL CARS, AND INSTALLATION TRACK) SOL W26AL1-8141-9999 POC LMI POC: CHUCK FORTENBERRY (703) 917-7421 EMAIL: cforten@lmi.org (Site Code DABT57) The Logistics Management Institute (LMI), on behalf of the U.S. Army, is reviewing the Army's approach to managing its diverse rail operations, to include locomotive operation, maintenance of locomotives, rail cars, and installation track. In connection with this effort, LMI also plans to survey commercial industry to develop a better understanding of industry's capabilities in these areas. The LMI survey requests industry to furnish standardized commercial cost estimates for the operations, management and maintenance of the U.S. Army owned "captive" rail fleet and military owned track. Any data provided to LMI, particularly cost data, will be used solely to support a preliminary LMI assessment of the state of the Army's rail operations and whether restructuring is needed. This is not an announcement to conduct a commercial activities study or privatize functions. Should LMI's recommendations lead to an Army decision to study these or other restructuring options, the Army will comply fully with all applicable laws and regulations, including those requiring notification to Congress and consultation with potentially affected employees. The Army intends to review LMI's report before deciding whether to initiate a study of restructuring options. With regard to LMI's assessment of industry's capabilities, this notice is to advise potential respondees that a meeting will be held at 10 AM (EDT) June 2, 1998 at LMI, 2000 Corporate Ridge, McLean, VA 22102. All interested parties should indicate intent to attend this meeting not later than May 27, 1998. LMI POC is Chuck Fortenberry, (703)917-7421 or email cforten@lmi.org. During this meeting, LMI will provide individual installation information and answer questions. Installation data will include: Locomotives assigned (by type); rolling stock assigned (by type); other rail equipment; facilities, such as engine houses, shops, connecting rail carrier; track class; amount of track; track condition; point of interchange; type of operation, hours per day required; and, number of cars handled. Standardized commercial cost estimates are requested no later than the close of business July 3, 1998. Cost estimates are expected to include all aspects of the rail operation, management and scheduled/routine maintenance of locomotives, rolling stock and track maintenance for a class 2 operation on each stateside installation. We are also asking for cost estimates to lease "power by the hour" at the installations. Estimates should include fixed and variable cost breakdowns. There are no fees for using government equipment, if used, and potential contractors will use their own personnel. The annual operations cost estimate should include providing trained and certified personnel (engineer, conductor, track maintainer, etc.) to operate the motive power and rolling stock in a safe and efficient manner and abide by all CFR-49 Safety Standards and AAR Interchange Rules where applicable. The estimate should be based on a full crew for an eight (8) hour shift or the specific number of hours as required to meet installation requirements for daylight operations, Monday through Friday. A separate cost estimate should be submitted for a second and third shift (5 days a week) and twenty four (24) hours/day, seven (7) days a week operations for support of contingency operations. We also ask for a cost estimate for the government to lease locomotive power (power by the hour) to service installations. The annual management cost estimate should include the availability of a qualified and knowledgeable work force to ensure a safe and efficient operation of the equipment and the performance of maintenance on the motive power and rolling stock. The manager must have the capability to manage and monitor cost recovery (component warranty), scheduled maintenance documentation, directives, etc. The annual maintenance cost estimate should include scheduled maintenance on locomotives and rolling stock (including parts and labor) as outlined by the Code of Federal Regulations, Section 49 (CFR-49), the Federal Railroad Administration (FRA), the Association of American Railroads (AAR), Research and Special Program Administration (RSPA), and the rail industry norm. All motive power and rolling stock must be maintained in certified condition and adhere to FRA safety standards. Rail cars that are in interchange condition now must be maintained to that standard. Unscheduled maintenance and repairs are not to be included. That unscheduled maintenance activity is additional to this request and will be reported separately with a cost breakdown estimate and a back in service report as it occurs. The railroad track, maintenance of way and crossings are to be maintained to class 2 standards. Track maintenance cost estimates should be separate. The management cost estimate should include a requirement to input management data into a DOD computer program (MTMCs Asset Management Systems (AMS)) which can be accessed, via the Internet, by all locations and Army commands for maintenance data tabulation and cross referencing. AMS is capable of automatically receiving location data from the AAR system, will provide fleet history and the current status of all motive power and car equipment at all locations. Computer hardware and phone lines are not to be included in the cost estimate. General types of equipment and expected locations are provided below. Specific installation by installation data will be provided at the June 2, 1998 meeting. Summary of Army Equipment: Locomotive-113 (11-Baldwin, 60 ton, 38-GE, 80 ton, 64-EMD, GP-9/10, GP-40, 120 ton) and Railcars 2,156 (26 tank cars, 38 hopper cars, 5 side dumps, 7 gondolas, 82-50 foot flatcars, 256-68 foot flatcars, 485-89 foot flatcars, 349 COFC, and 888 boxcars) Expected locations: Aberdeen Proving Grounds, Aberdeen, MD Lima Ammunition Plan, OH Anniston Army Depot, Anniston, AL Lone Star Ammunition Plant, TX Fort Benning, GA Fort Bliss, TX Fort McClellan, AL Blue Grass Army Depot, Lexington, KY Fort McCoy, WI Fort Bragg, NC Milan Army Depot, TN Fort Campbell, KY Military Ocean Terminal, Sunny Point, NC Fort Carson, CO Pine Bluff Army Depot, AR Fort Dix, NJ Fort Polk, LA Fort Drum, NY Radford Army Depot, Radford, VA Fort Eustis, VA Red River Arsenal, Texarkana, TX Fort Gordon, GA Fort Riley, KS Hawthorne Army Depot, Hawthorne, NV Rocky Mountain Arsenal, Denver, CO Holston Ammunition Plant, TN Sierra Army Depot, CA Fort Hook, TX Fort Sill, OK Fort Irwin, CA Fort Stewart, GA Fort Knox, TN Tooele Army Depot, UT Fort Leonard Wood, MO Watervliet Arsenal, NY Fort Lewis, WA (0142)

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