Structured Procurement Processes and Financial Evaluations

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Abstract:

The advent of public-private partnerships (P3) has become perhaps the most notable consequence of the emphasis on competitiveness and cost-efficiency in the North American water and wastewater industry. More and more utilities have not only accepted a heightened role for private sector partners, but have embraced the attendant opportunities to achieve cost savings and transfer project delivery and operating risks. However, utility experience strongly suggests that achievement of these potential benefits, particularly cost savings, is largely dependent on the procurement processes employed to engage, select and contact with private sector partners. This paper outlines the importance of structured processes for procurement of facility operations services and the fundamental principles involved in risk allocation for, and financial evaluations of, proponent bids.

Keywords: CONTRACT OPERATIONS; PROCUREMENT

Document Type: Research Article

DOI: http://dx.doi.org/10.2175/193864707787168846

Publication date: October 1, 2007

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  • Proceedings of the Water Environment Federation is an archive of papers published in the proceedings of the annual Water Environment Federation® Technical Exhibition and Conference (WEFTEC® ) and specialty conferences held since the year 2000. These proceedings are not peer reviewed.

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