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September 24, 2013
State Lawmakers Aim to Reform Municipal Procurement of Water and Sewer Piping
State leaders have joined federal and local lawmakers
calling for more open competition in the procurement of water and sewer piping.
The U.S. Conference of Mayors estimates that renewing the nation's underground
piping will cost $2.28 trillion over the next 20 years. With revenues for State
Revolving Funds (SRFs) in serious decline, there is a tremendous need for
municipalities to get more bang for the buck from their water and wastewater
infrastructure projects. A new report by the American Legislative Exchange
Council (ALEC) argues that municipal bidding processes must be more competitive
and include non-corroding materials like PVC pipe, which will result in lower
costs and more sustainable water infrastructure. A shift in pipe selection from
iron materials to PVC could generate savings of $370 billion nationwide. “While
innovative and cost-effective products and technologies are readily available,
these products are often excluded from consideration.” The report cites the
“habituation factor,” or “the tendency of government officials to select the
materials they are comfortable with and have used for years.”
“The primary cause of premature pipe failure is corrosion, so the choice of
piping material is critical to keeping long-term maintenance costs down and
minimizing capital-replacement budgets… Competitive bidding that allows for the
consideration of alternative, yet proven and accepted, piping materials can
result in enormous savings,” says study author Bonner R. Cohen, Ph.D., a senior
fellow at the National Center for Public Policy Research in Washington, D.C.
Click here for report. |
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Lack of Open Competition and Corrosion of Underground Infrastructure: The Chorus
Gets Louder
ALEC’s study, titled “Lowering
Costs in Water Infrastructure through Procurement Reform:
A Strategy for State Governments,” is the latest in a long
line of reports published by highly influential
organizations like the
U.S. Conference of Mayors (USCM),
National Taxpayers Union (NTU)
and the
Competitive Enterprise Institute
(CEI) on the need for more competition and
innovation in the procurement of underground piping. Other
groups like the U.S. Water Alliance, Water and Wastewater
Equipment Manufacturers Association, and the Water Finance
Research Foundation have expressed similar views. “Only by
modernizing procurement practices and the assumptions upon
which pipes are selected can municipalities achieve much
needed cost-savings and performance improvements in
their underground
infrastructure at a
time of dwindling resources,”
says
Richard F. Anderson, Ph.D., Senior Advisor, U.S.
Conference of
Mayors
Water Council.
Significantly, all the reports
point out how metallic pipe corrosion is driving up water
rates and undermining the long-term sustainability of our
water systems. The solution
is broader access to better
performing and more cost-effective technologies like PVC
pipe. The outdated practice of choosing less durable,
corrosion-prone
metallic pipes without a full financial evaluation
must end. With corrosive soils
affecting 75 percent of all
U.S.
water
utilities, coupled
with significant iron pipe
wall thickness reductions over
the last
century,
iron pipe longevity has plummeted according to the NTU.
The Open and Fair Competition Act for Water and Wastewater
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ALEC
is a nonpartisan, voluntary membership organization
comprising nearly one-third of the country’s state
legislators. Included in its report is model legislation,
“The Open and Fair Competition Act for Water and
Wastewater Projects,” which state legislatures across the
country are encouraged to enact. The Act will require
municipalities that receive funding from SRFs to include
all piping materials that meet recognized standards set by
the American Society of Testing Materials (ASTM) and the
American Water Works Association (AWWA) in their bidding
processes. As well, municipalities will have to “consider
quality, sustainability, durability, and corrosion
resistance when procuring piping material.” By ensuring
that open procurement practices are used in the selection
of underground piping, projects can be constructed at the
best price and best value for system customers and
taxpayers. The proposed legislation replicates open
competition policies already in place for more than a
decade with the U.S. Department of Agriculture for funding
it provides rural municipalities for their water and sewer
projects.
Click here for model legislation.
Regards, |
Bruce Hollands
Executive
Director | Uni-Bell PVC Pipe Association
2711 LBJ Freeway, Suite
1000 | Dallas, TX 75234
T. 972.243.3902 ext. 1019 | C. 214.244.9202 | F.
972.243.3907
www.uni-bell.org
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