April 22, 2015

 

Procurement Reform Taking Hold in U.S. Water and Wastewater Sector


Water and sewer rates are increasing across the country. The U.S. Conference of Mayors says an estimated $3.8 trillion in spending is required over the next 20 years for water and wastewater systems. According to the EPA, pipe represents 60% or $2.28 trillion of that total, so focusing on pipe material selection is the first step in helping to reduce these staggering costs. Unfortunately, outdated procurement practices often prevent the most cost-effective materials from being considered. “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.
 

   

New National Municipal Organization Sees Huge Savings in Public Works With Open Pipe Selection

   

The American City County Exchange (ACCE), which launched about a year ago, is a national network of village, town, city and county lawmakers seeking to advance efficiency, limited government and free market principles at the local level. ACCE operates in over 300 local jurisdictions in 48 of 50 states. Councilman Jon D. Russell (Culpeper, VA), Director of the ACCE, believes that open selection and procurement for piping can provide municipalities with significant savings in public works projects, since these are the biggest financial drivers in local budgets after labor costs.

Click here for a recent article by Councilman Russell which appeared in Public Works Magazine (republished in American Legislator) entitled, Pipe Dream? Review Pipe Procurement Policies to Keep Taxpayer Money from Going Down the Drain. “Based on the size of the locality, tens of thousands or possibly millions of dollars in cost savings could be realized by opening procurement of piping material to fair and open competition,” says Russell.
 

Model Policy on Competitive Pipe Procurement for Local Governments


The ACCE has developed a model policy for municipalities for piping used in water and sewer projects. Essentially, the policy encourages use of all piping materials that meet engineering standards. The policy does not mandate the use of any particular pipe material, nor does it restrict the ability of project engineers to use any piping material they deem appropriate. Click here for model policy.


Localities that Have Embraced Fair Bidding Have Saved Millions

Critics of procurement reform have circulated dubious “engineering” arguments suggesting that open procurement would lead to higher costs and unduly complicate the job of design engineers. Councilman Russell’s advice is for local councils to discount this misinformation and act in the best interests of taxpayers. Thousands of jurisdictions have embraced competitive bidding and have not encountered “engineering” problems. Instead, these localities have saved hundreds of millions of dollars and improved their water and sewer networks through use of durable PVC pipe instead of costlier, corrosion-prone ductile iron piping.
 

States Considering Legislation on Open Competition for Water and Sewer Projects

Bonner R. Cohen, Ph.D. is a water infrastructure expert who has written extensively on issues affecting local water and sewer systems. His latest article, Seizing the Initiative: How States Can Help Themselves in Rehabilitating Underground Water Infrastructure, appeared in American Legislator. It provides an excellent counterpoint to the questionable “engineering” arguments put forward by critics of procurement modernization. Click here to read.
 

Princeton, Illinois Council Says Yes to PVC Pipe

In an effort to improve their water system and reduce costs, Mayor Keith Cain and the Princeton (IL) City Council voted unanimously to include PVC water pipe in its procurement process. Former Princeton Water Department Superintendent Mike Eggers, who favors iron piping, and the Ductile Iron Pipe Research Association argued against allowing PVC pipe in Princeton’s bids. Click here to read the full story which appeared in the Bureau County Republican entitled, Material bids will ‘speak for themselves’.

Regards,

Bruce Hollands
Executive Director | Uni-Bell PVC Pipe Association
2711 LBJ Freeway, Suite 1000 | Dallas, TX 75234

T. 972.243.3902 ext. 1019 | F. 972.243.3907

www.uni-bell.org