ALTERNATIVE PROCUREMENT FOR A LONG - TERM OPERATING CONTRACT USING A DESIGN - OPERATE APPROACH IN SIOUX CITY, IOWA
Abstract:In 1999 the City of Sioux City, Iowa decided to change from its current short term (5 year) operating contract to a long – term (20 year) contract. Initially plant evaluations were made and improvements proposed. This paper will detail the evaluation used to determine weather to rehab the existing plant or to construct a new plant. It will also show processes used to determine the type of long term contract, how proposals were obtained, negotiations and final outcomes in terms of costs to the City. The City has had success with public – private partnerships and Executive Order 97-13 presented another opportunity to continue this method of providing City services. The unique design – operate (DO) procurement process was selected after significant efforts by the City to provide a design – build – operate (DBO) procurement. The Iowa Attorney General was contacted and legislative efforts were made to change Iowa law to allow the DBO procurement. This paper details the efforts and stumbling blocks encountered to use a DBO procurement. After a delay of 2 years it was decided that Iowa law would only allow a design – operate procurement and a standard bid/build contract for plant reconstruction. To our knowledge this is the only time the design – operate (DO) process has been used in a major long term operating contract in the United States. A procurement process was initiated that involved pre-proposal meetings with the vendors to assure they would be able to propose on this method of procurement. This paper discusses the RFP process and the Vendor selection process. A Selection Committee's role and influence in the vendor selection and contract negotiations were much larger than originally anticipated. How this committee functioned is truly unique due to it's involvement during contract negotiations. This paper evaluates this role in the process. This paper compares the initial proposals to the final negotiated contract costs and compares this cost to City operation.
Document Type: Research Article
Publication date: January 1, 2005
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