B -- B -- FINANCIAL SERVICES

Notice Date

September 13, 2001

Contracting Office

Department of Agriculture, Rural Development, Procurement Management Division, 1400 Independence Ave., S.W. Mail Stop 0741, Washington, DC, 20250

ZIP Code

20250

Solicitation Number

IB-31ME-1-1003

Response Due

September 24, 2001

Point of Contact

Myrtis Robinson, Contract Specialist, Phone 202-692-0115, Fax 202-692-0235, Email myrtis.robinson@usda.gov -- Ann Grierson, Contracting Officer, Phone 202-692-0109, Fax 202-692-0117, Email deborah.fletcher@usda.gov

Description

This is a combined synopsis/solicitation for commercial items prepared in accordance with the format in Subpart 12.6, as supplemented with additional information included in this notice. Invitation For Bid (IFB) No IB-31ME-1-1003 is being issued as a IFB, and incorporates the provisions and clauses in effect through Federal Acquisition Circular(FAC) 97-27. ATTACHMENT A -Industry Specific, Financial and Economic Counsel for Negotiation Support Contractor must possess in-depth knowledge of and extensive experience in the electric utility industry, its regulatory and legal structure, current technologies, methods of utility operation and bankrupt and troubled utilities.=20 Based on the contractor's (a) in-depth knowledge of the electric utility industry, its regulatory and legal structure, current technologies and methods of utility operation, (b) extensive prior experience in such arenas, ( c) analytical support, and ( d) decision support systems, the contractor must have demonstrated ability to provide counsel to the Government in support of programmatic decisions by RUS, and in evaluation of restructuring proposals and negotiating strategies for troubled and bankrupt borrowers. Examples of such counsel include advice and assistance on bankruptcy issues (i.e., cash collateral, discussions with other utilities, selling all or parts of a borrower's system, selection of trustee/examiner or workout specialist); responding to assertions made by the borrower/other creditors/regulatory authorities; alternative debt restructuring proposals by the Government or other entities; rate regulation; industry wide issues such as demand side management, retail wheeling, open access, deregulation, FERC rulings, etc. ; impact of regulatory decisions on the financial condition of investor owned utilities and cooperatives; viability of potential Merger/consolidations/asset disposition of electric cooperatives, investor owned utilities and municipals; competitive alternatives to a borrower's existing power supply arrangements; and advantages/disadvantages of borrower sellouts. The contractor must be willing to provide analytical support and financial and conomic counsel as an active participant on the Government's negotiating team, and frequently travel (at times with short notice) to locations outside of the Washington, D. C. area. -Credentials, Expertise and Experience to Credibly Provide Testimony for Court Proceedings and Before State Regulatory Bodies, and Make prentations to Other Organizations Involved in Ongoing Negotiations. The contractor must possess the credentials, expertise and have demonstrated experience in (a) making presentations, for example, to congressional committees, cooperative boards of directors, senior management of electric cooperative and other electric utility organizations, consultants, legal counsel, and other creditors regarding research and special analyses conducted which form the basis of debt restructures, plans of reorganization or other negotiated settlements or write-offs of debt, and (b) providing testimony for bankruptcy or other court proceedings and before state regulatory bodies on complex electric utility issues ( e.g., revenue requirements, alternative, traditional and innovative rate making, rate disparity, rates necessary to support debt restructure agreements, purchase power contracts, regional power markets, asset valuation, etc. ), and in support of proposed electric utility debt restructure agreements. -Financial Analyses Contractor must have demonstrated ability to develop integrated financial models, forecasts and risk assessments to provide financial and risk analyses. Examples of which the contractor will be responsible for include the construction of financial models and forecasts that adequately reflect the economic and financial condition of electric cooperatives under various alternative futures, assessments of alternative debt restructuring proposals or plans of reorganization on the financial condition of the cooperatives and likelihood of full repayment of government guaranteed debt and direct loans, assessments of credit worthiness, valuation of existing assets based on market value, liquidation and/or going concern approaches, assessments of alternative financial instruments and their impact on the financial condition of borrowers (e.g., sale/leaseback arrangements), and analyzing the interplay between power supply costs, distribution system costs and the overhead costs of running a cooperative. Contractor must have demonstrated ability to provide specialized and speedy ad hoc financial and risk analysis of alternative debt restructure proposals and plans of reorganization for troubled and bankrupt electric utilities during the course of ongoing negotiations.=20 Economic Analyses-Contractor must have demonstrated ability to develop integrated economic models and forecasts to provide economic analyses. Examples of which the contractor will be responsible for include the construction of economic models and forecasts regarding assessments of local and regional economic conditions, electricity demand forecasts by customer class and including potential implications of demand side management and conservation alternatives, evaluation of competitive electricity rates (within local, state, and regional areas), and forecasts of price and availability of alternative conventional fuels (nuclear, coal, natural gas, residual oil, distillate, hydroelectric resources, etc.). -Regional Power Market and Alternate Fuels Analyses Contractor must have demonstrated ability to develop integrated models to provide regional power market and alternate fuels analyses. Examples of which the contractor will be responsible for include: models to assess regional power supply curves, diversity and density of load, power pooling and wholesale markets for power (including identification of likely buyers and sellers); opportunities for regional bulk power sales and purchases and estimates of likely costs; regional transmission system loading and power flow constraints and interconnect issues including sales to neighboring regions; diversity of generating sources (existing and planned); current and forecast regional (pool) reserve margins; assessment of the potential threat and/or opportunities for independent power producers, small power producers and industrial cogeneration (both industrial self generation and sales of grid); assessments of the costs of alternative fuels as principal factors in the cost of electricity production; and assessments of a borrower's competitive position in light of state regulatory pressures for rate competitiveness, demand side management, retail wheeling, conservation. etc.=20 -- Preparation of Issue Papers and Briefings Examples of which the contractor will be responsible for include briefings and reports addressing impacts of changes in the regulatory environment likely to impact the economic competitiveness of RUS borrowers (e.g., in the electric power industry, demand side management, retail wheeling, deregulation initiatives), major Federal regulatory rulemakings and rate decisions (e.g., FERC), the financial condition of competing privately owned entities, and implications of mergers/acquisitions.=20 =20

Web Link

Visit this URL for the latest information about this (http://www.eps.gov/spg/USDA/RD/PMD/IB-31ME-1-1003/listing.html)

Record

Loren Data Corp. 20010917/BSOL001.HTM (D-256 SN50X5F7)