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In today’s American cities, adopting the use of advanced technology and better approaches to clean water and sewer are common and often required by law. Cities providing public water delivery have not only grown in population size and in number, but also in their attitudes toward public health, and innovations involving system designs, technologies and accepted practices. In the 19th century cast iron was added to the common use of clay, lead and wooden pipes by cities to convey water and wastewater. In the 20th century, continued innovation carried ductile iron, concrete and cement, and plastic pipes into the market. In the 21st century, new generations of plastics, advanced composites, and other materials are being added to a long list of viable piping materials. Technological advancements in pipe materials have helped to support a growing national population while continuing to improve on cost and performance and achieve public health protection goals to guard against waterborne parasites and toxic contaminants.
Municipal procurement: Competitive bidding for pipes Demonstrates Significant Local Cost Savings
Municipal Procurement: Competitive
Bidding for Pipes Demonstrates
Significant Local Cost-Savings
By Richard F. Anderson, Ph.D.,
Senior Advisor, Mayors Water Council, USCM
THE UNITED STATES CONFERENCE OF MAYORS
SEPTEMBER 2018, WASHINGTON, DC
THE UNITED STATES CONFERENCE OF
MAYORS
Steven K.
Benjamin Mayor
of Columbia, SC
President
Bryan K. Barnett
Mayor of Rochester
Hills, MI Vice President
Greg Fisher
Mayor of
Louisville, KY
Second Vice
President
Tom Cochran
Executive
Director and CEO
Municipal Procurement:
Competitive Bidding for Pipes
Demonstrates Significant Local
Cost-Savings
By Richard F. Anderson,
Ph.D. Senior Advisor
U.S. Conference of Mayors Water
Council
July 2018
TABLE OF
MCaOyoNr’sT ENTS
Briefing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Background and
Purpose . . . . . . . . . . . . . . . . . . . . . .
5 Local Governments and the Affordability
Crisis . . . . . . . .
5
The Magnitude and Trajectory of Local
Investment in Water and Sewer
Pipes . . . . . . . . . . . . . . . . . . . . . . .
6
The Cost of Pipe
Procurement . . . . . . . . . . . . . . . . . . . .
7
Pipe Performance
Expectations . . . . . . . . . . . . . . . . . .
9
Public Safety and the
Environment. . . . . . . . . . . . . . . .
11
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Discussion
Questions . . . . . . . . . . . . . . . . . . . . . . . .
13
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
14
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Ohio
Communities. . . . . . . . . . . . . . . . . . . . . . . . . .
16
Carolina
Communites . . . . . . . . . . . . . . . . . . . . . . . .
16
Michigan
Communites . . . . . . . . . . . . . . . . . . . . . . . .
17
Arkansas
Communites . . . . . . . . . . . . . . . . . . . . . . . .
17
MAYOR’S BRIEFING
In today’s American cities, adopting the use of advanced technology
and better approaches to clean water and sewer are common and often
required by law. Cities providing public water delivery have not only
grown in population size and in num- ber, but also in their attitudes
toward public health, and innovations involving system designs,
technologies and accepted practices. In the 19th century cast iron was
added to the common use of clay, lead and wooden pipes by cities to
convey water and wastewater. In the 20th century, continued innovation
carried ductile iron, concrete and cement, and plastic pipes into the
market. In the 21st century, new generations of plastics, advanced
composites, and other materials are being added to a long list of viable
piping materials. Technological advancements in pipe materials have
helped to support a growing national population while continuing to
improve on cost and performance and achieve public health protection
goals to guard against waterborne parasites and toxic contaminants.
The daunting challenge cities face today is the urgent need to replace
hundreds of thousands of miles of aging and failing pipe. Pipes are the
single most costly water and sewer capital investment category. Mayors
want efficient solutions that make the best use of limited resources without
compromising the performance or safety of their water systems. One
solution that municipalities can no longer afford to overlook is opening- up
their procurement processes so that managers have the freedom to
consider all suit- able project materials. Adopting practices and policies
that encourage standardized comparisons of different pipe materials for
water, sewer, and stormwater projects pro- vides mayors with an
opportunity to reduce the local cost of pipes and maintain equal or better
public safety and material performance levels. A review of new
information reveals standardized cost comparisons demonstrate
significant price point differences and updating procurement policies can
save as much as 30% of capital costs.
Background and Purpose
In 2013 the Mayors Water Council (MWC) released “Municipal
Procurement: Pro- curement Process Improvements Yield Cost-Effective Public
Benefits”, a report examining procurement practices in the water
infrastructure sector. The report made a business case for considering
alternative pipe material so local governments could realize public
benefits (e.g., cost, performance, safety). The report suggested the need to
change out- dated procurement policies, and that the biggest impediment
to adopting these chang- es stemmed from the reluctance of local
procurement officials to break from convention. This report presents
information from new research that demonstrates the merits of adopting
open procurement policies and new practices that apply competitive
consid- eration of alternative pipe materials. These policies will help local
officials maximize
resources and practice good governance.
There are three critical factors to consider when procuring water and
sewer pipes: cost, materials performance, and public safety. This paper
examines each of these fac- tors relying on new standardized
comparisons for alternative pipe material cost, and recent surveys
reporting on pipe performance characteristics. Based on standard cost
comparisons between different pipe materials, it can be estimatPeda gteha 5t
applying such analysis in an open procurement process can yield
substantial cost-savings without having to sacrifice performance or safety.
Local Governments and the Affordability Crisis
Local governments are struggling to deal with historically high costs
to provide water and sewer infrastructure and services. Census estimates
from 2015 suggest that cities and counties spent over $118 billion in the
water and sewer sectors, and recovered $114
billion (or 96 percent) through rates, charges and fees. Despite recent
improvement in customer revenues, the unrelenting increases in total costs
are fueling household afford- ability impacts that are both significant and
widespread. Federal and State financial assistance has been on the wane
for over 30 years, but the U.S. Environmental Protec- tion Agency (EPA) and
State regulators continue to require greater levels of local spend- ing to
accomplish national goals by imposing unfunded mandates on local
utilities. Cit- ies are also facing a challenge to add as much as 25 percent
to current water and sewer capacity to service the expected 80 million
new Americans the Census predicts by 2051. These factors converge at the
local level where cities are seeking efficiencies, innovation and other cost-
savings measures to take the pressure off rapidly rising rates.
The American Water Works Association estimates that it will cost over
$1.3 trillion to replace our nation’s water infrastructure. There are an
estimated 240,000 water main breaks/year, $2.6B wasted on lost water
and sewer overflows due to aging pipes, and at least 17% of potable water
lost to leakage.
Residential water rates have gone up by 137% since 2000. A 2017
Michigan State University study projected that water could be
unaffordable for 1/3 of Americans in five years. A 2016 US Government
Accountability Office report surveyed ten mid and large-sized cities with
declining populations and found that the cost for water and wastewater
service is almost twice the affordability threshold for low-income custom-
ers in 40 percent of the cities it reviewed, with further rate increases on
the way. To make matters worse, these communities typically have some
the oldest infrastructure and receive the least amount of funding for
infrastructure repair projects.
The Magnitude and Trajectory of
Local Investment in Water and Sewer
Pipes
Local government spent over $359 billion between 1993 and 2017 on
underground assets. Material failure and replace/repair programs may be
poor to excellent based on factors such as asset management,
Table implementation of best practices, and budget con- straints. Cost and
1 performance over time are critical elements of system design decisions, so
INDICATOR – PIPEthSe, PmUaMgnPitSu dAeN oDf DloRcaAlI NpSipe inSvEeWstEmRentsW AinTvEiRtes WinAtSeTreEWstA TinER prToOcTuArement
decisions. L
A 25-year period (1993-2017) provides a long-term frame of reference
CUMULATIVE 25-YEAR INVaESnTdM EeNsTti m19a9t3e-2 0 1o7f (c$u mBILuLIlOaNti)ve inve1s9t2m.4ent. C1o2n7s.5truction i3n9v.2estmen3t5 9i.n1 sewer
line and pumps and waste- water line and drains from 1993 to 2017 was
$359 billion, while construction invest- ments in water and
sewer/wastewater plants was $313 billion during that same period.
2017 INVESTMENT ($ BILLION) 8.0 4.4 1.89 14.29
25-YEAR AVERAGE ANNUAL GROWTH RATE (%) 4.34 1.76 4.9
2016 TO 2017 GROWTH RATE (%) -21.7 -21.4 -12.6
SOURCE: U.S. Census, State and Local Government Construction
Spending
Page 6
Figure
1
THE COST OF PIPE PROCUREMENT
Pipes are one of largest single cost components of water and
sewer/wastewater systems (EPA estimates that pipes are 60% of project
costs). The continual need for local investments in pipes adds up over
time. Spending on pipes can vary widely, (Figure 1 and Table 1), and
there is an expectation that a large replacement cost is imminent as
existing pipes, especially cast iron pipe, approaches the end of its design
life. The pipes provide such a basic service in the community that they
must perform with cer- tainty, and that is why the pipe materials in use
have undergone dramatic change. For example, in the drinking water
market, the pipes in use today (Table 2) have displaced most wooden and
lead pipes and cast iron and asbestos cement water mains are phas- ing
out. Similar changes have occurred in sewer and storm pipe markets where
other materials such as clay were once predominant.
“As mayor, it is my responsibility to explore options
that will get our rate payers the best bang for the buck.
The open procurement process, allowing the bidding
of different pipe materials, not only forced suppliers
to sharpen their pencils, it ended up saving the city
of Burton over $2 million by using PVC pipe instead
of ductile iron (DI) pipe on our five-phase $25 million
watermain replacement project. Even if we would have
chosen to use DI pipe, the open procurement process
forced the cost reduction of the DI materials that would
have saved about $200,000 in the project.”
~ Burton (MI) Mayor Paula
Zelenko
Page 7
Piping is remarkably inter-changeable and many of today’s modern
water systems use a variety of materials. However, many systems restrict
themselves to a single mate- rial for all uses (e.g. “all storm pipes must be
concrete”) or some categories of use (e.g. “all water pipes 12” and larger
must be ductile iron”). These restrictions are often written into a city or
county specification or ordinance and prevent engineers and contractors
from considering otherwise acceptable materials. These restrictions create
a ‘closed’ system, while expanding old standards to include alternative
materials pro- vides for ‘open’ competition.
A sensible local procurement approach can take advantage of
changes in pipe materials not only on a cost basis, but also on their
Table performance characteristics. This section summarizes several consultant
2 studies recently released that examine cost dif- ferentials of the major pipe materials based on pipe size and length.
WHAT KIND OF WATER PIPES ARE UNDERGROUND IN YOUR
CITY?
Folkman (2018) estimates that four
types of pipe materials make up 91 The remaining 9% of pipes
percent of water mains used
t $JUJFT PGUFO VUJMJ[F UIFN JO t IJHI EFOTJUZ
TDhPeN CfoJOuBr UcJoPOmmonly QPMZFUIZMFOF () %1&) t
used pipes: TUFFM
t DBTU JSPO t NPMFDVMBSMZ PSJFOUFE
($*) 28 % t 17$ (17$0 ) t DPODSFUF
EVDUJMF JSPO (%*) TUFFM DZMJOEFS ($4$)
28% t PUIFS NBUFSJBMT
t QPMZWJOZM
DIMPSJEF (17$) 22% t Source: Folkman, Steven Ph.D., P.E., (March 2018)
BTCFTUPT DFNFOU
(A$) 13%
These studies have found that communities with open procurement
policies have been able to lower their costs for purchasing pipes even in
cases where the same material is used. In fact, going from a closed to
open policy on average can save local governments 30 percent in capital
costs on pipe, or roughly $100,000/mile.
BCC Research and Datahawks reviewed bid documents and interviewed
local water officials in 14 communities (cities and counties). They looked at
the use and cost of dif- ferent pipe materials and different lengths of pipe
commonly used by cities, notably ductile iron and plastic pipe (primarily
HDPE and PVC).
Here is what the research found:
t AO FTUJNBUFE 78% PG TZTUFNT BMMPX GPS POMZ POF UZQF PG NBUFSJBM
JO DFSUBJO BQQMJDB-
tions (“closed competition”) leading to virtual monopolies.
t 5IF BWFSBHF DPTU UP SFQMBDF ESJOLJOH XBUFS QJQFT JO BO iPQFO
DPNQFUJUJPOw TZTUFN
is 26% per mile less expensive than in “closed competition” regions.
t FPS TUPSNXBUFS, UIF TBWJOHT GSPN iPQFO DPNQFUJUJPOw BWFSBHF 39%
QFS NJMF.
t /BUJPOBMMZ, iPQFO DPNQFUJUJPOw DPVME TBWF BO FTUJNBUFE $20.5
CJMMJPO GPS ESJOLJOH
water and $22.3 billion for storm water in pipe material costs alone
over the next 10 years.
Researchers found evidence of the added cost ‘closed’ procuPreamgeen 8t
policies impose on local governments. The costs result not from any
difference of materials, but rather from a difference of procurement policy:
“Furthermore, ductile iron pipe of the same diameter was found to be less
costly in open bid cities than in closed bid cities: 8-inch ductile iron pipe
cost, on average, $71.69 per foot in Port Huron (closed) and $62,39 in
Grand Rapids
(closed), in comparison to $58.60 in Livonia (open) and 55.64 in Monroe
(open). Therefore, even when ductile iron is considered by itself, 8-inch pipe
costs in closed bid cities were up to $16.05 higher than in open bid cities,
equivalent to a pipe cost inflation of up to 29%,” (BCC 2017).
A summary table included in the appendix presents selected
information for each of the research reports. The key information includes:
pipe material, annual installation in linear feet, pipe diameter and cost per
foot, and while the information presented in the studies covers 2013 to
2015, we focus on the 2015 cost per foot information, the latest year of
report availability.
Reevaluating the status quo and conducting cost comparisons can lead
to choices that yield benefit to the community and system users. These
findings should be of great interest to local officials that are looking for
better options to upgrade their water sys- tems, stretch resources and
keep rates down.
Because the savings accrue at the project level, competition will speed
the upgrad- ing of water infrastructure and enable innovation to help
provide clean, safe water and reduce ongoing maintenance costs.
Pipe Performance Expectations
The American Water Works Association (AWWA) and the American
Society for Testing of Materials (ASTM) established outer diameter wall
thickness standards for pipes made of Cast Iron (CI), Ductile Iron (DI), Poly
Vinyl Chloride (PVC), High Density Polyethylene (HDPE) and Molecularly
Oriented Poly Vinyl Chloride (PVCO). The stan- dards establish a threshold
of performance that all pipes are expected to meet. Thus, pipes that
meet these mechanical performance criteria, regardless of pipe material,
satisfy the standards. The standards are broken down by grouping pipe
diameter sizes.
The AWWA standards have governed outer diameter (OD) sizes for
pipes used in municipal water systems since the 1970s. OD pipe size
Table standardization for water systems enable compatibility with connections
3 for valves, hydrants, services and fittings for different pipe materials and
assures complete interchangeability with a minimal amount of inventory
NUMBER OF REPOreRqTuiEreDd for operatioNnUs MaBnEdR mOaFi ntenance aPctEivRitCieEsN. TTAheG Eo OutFe r wall
BREAKS diameter (wall thickneCsIsT) IiEs Sthe most direct metCriIcT IoEf Spipe suitability for a
1-25 project and includes conside1ra0t1ion of hydrostatic design s3tr5e.s8s (psi).
26-50 54 19.1
51-100 47 16.7
101-200 42 14.9
201-300 7 2.5
301-500 11 3.9
> 500 20 7.1
TOTAL 282 100
SOURCE: Anderson, R. 2007, US Conference of
Mayors Page 9
These standards address many concerns such as meeting firefighting
requirements: “Fire flow standards require a minimum residual water
pressure of 20 pounds per square inch gauge (psig) during flow. It is
common practice to maintain pressures of 60 to 75 psig in industrial and
commercial areas and 30 to 50 psig in residential areas. Distribution
system mains and pipes must be designed to withstand these pressures.”
(/BUJPOBM ADBEFNJFT 1SFTT (64), 1982).
Why are pipes failing despite established standards for performance?
Standards describe the mechanical performance necessary for an
application, or in the case of the A/4*//4F 61 4UBOEBSE, UIBU UIF QJQF
DPNQMJFT XJUI BMM IFBMUI SFHVMBUJPOT GPS NBUFSJBMT
that contact drinking water. But pipe standards do not specify what pipe
to procure or the environmental factors that may cause a pipe to fail
prematurely such as the local soil corrosivity, seismic conditions, or use. For
existing pipe, age is also an important factor.
There is a growing body of information that characterizes the general
decline of infrastructure, and more specifically, breaks in water mains
and sewer pipes. The AWWA (2012) released a landmark report on
underground infrastructure (pipes) that unveiled the extent of decline and
the urgency of addressing it. An AWWA follow-up survey expressed this,
“The top concern in the AWWA surveys for 2016 and 2017 is ‘renewal
and replacement (R&R)’ of aging water and wastewater infrastructure”,
(AWWA 2017). Additionally, the American Society of Civil Engineers
(ASCE) has opined that water and wastewater infrastructure in America
gets a D- grade in 2009, (ASCE 2009); and a slight improvement to a D
grade in 2017, (ASCE 2017). The EPA has similar findings.
Two surveys provide local-government oriented findings: a 330-city
survey conduct- ed by the Conference of Mayors, (2007); and, a more
recent survey of 308 utilities conducted by Utah State University, (2018).
The Conference of Mayors released results of a 330-city survey
examining the status of asset management and condition assessments of
water and sewer pipes and pipe failures (Anderson, 2007). The findings
demonstrate that pipe breaks are common (See Table 3). Asset
management programs were more likely to be found in larger systems.
Utah State University recently reported results from a survey of water
main breaks, (Folkman, March 2018). The survey included 308 drinking
water utilities in the USA and Canada with details from 281 on water
main break data covering 170,569 miles of pipe. This survey is an
important contribution to the literature because it provides
estimates of pipe performance by type of pipe material.
Among the major findings of the Utah State University survey, several are
important because they directly address pipe performance in general and
performance by pipe material (adapted from Folkman, March 2018):
t 8BUFS NBJO CSFBL SBUFT IBWF JODSFBTFE 27% GSPN 2012 UP 2018;
SBJTJOH GSPN 11 UP
14 breaks on average for every 100 miles of pipe per year.
t 5IF 308 XBUFS TVQQMZ TZTUFNT TVSWFZFE GPVOE UIBU 82% PG DBTU
JSPO ($*) QJQFT BSF
more than 50 years old and experiencing a 46% increase in break
rates.
t ANPOH UIF VUJMJUJFT TVSWFZFE, UJ XBT GPVOE UIBU VTJOH BTTFU
NBOBHFNFOU BOE PQFSB-
tions optimization (for example, pressure reduction and leak
detection), help extend the useful asset life.
t 0OMZ 45% PG 6UJMJUJFT DPOEVDU DPOEJUJPO BTTFTTNFOU PG XBUFS PNaBJgOeT.
t 17$ QJQF IBE UIF MPXFTU GBJMVSF SBUF JO UIF TVSWFZFE VUJMJUJFT 10
DPNQBSFE UP DBTU JSPO,
ductile iron, concrete, steel and asbestos cement pipes.
t $BTU JSPO BOE EVDUJMF JSPO QJQFT FYQFSJFODF IJHI GBJMVSF SBUFT JO
DPSSPTJWF TPJMT. t MPTU VUJMJUJFT IBWF NPEFSBUF UP IJHI TPJM DPSSPTJPO
SJTL.
A substantial portion of the current pipe inventory is cast iron and it is
nearing the end of its design life. Water and sewer system managers
regularly consider whether to repair or replace pipes. If repair, how, where,
and for what linear measure? If doing a replacement, also consider what
pipe material has the best value.
The local government utility surveys confirm the constancy of breaks.
Earlier in this report we noted that even with a downturn in pipe
expenditures by local government, pipes, the underground infrastructure,
and their immediate system connectedness, drains, lines, etc., continue to
be among the top annual construction expenditures in the public water
and sewer sectors.
The repetitive nature of the repair and replace procurement activity
adhering to entrenched or convenient procurement policies is a direct
impediment to cost-savings by stifling innovation. Mayors should instead
view it as an opportunity to try new approaches and new pipe materials.
If different pipe materials meet recommended mechanical standards,
then they should also have equal consideration in an open bid process.
This will introduce competition and should result in lower prices, even for
incumbent materials.
There are many claims and counterclaims about the efficiency, durability
and safety of pipes. Local procurement officials can obtain reliable
information by contacting vari- ous industry trade associations and state
and federal agency resources. Officials can also rely on consulting
engineers for information.
PUBLIC SAFETY AND
THE ENVIRONMENT
Advances in drinking water treatment technologies have been
tremendous since 1900, but the public health benefits are sometimes
diminished with pipe failure. Cit- JFT XJUI NBjPS VSCBO ESJOLJOH XBUFS
TZTUFNT MJLF +FSTFZ $JUZ, /+, BBMUJNPSF, M% BOE
Louisville, KY implemented best practices in the early 1900s – filtration
and chlorination
– and achieved an immediate decline in infant and childhood morbidity
and mortality related to parasitic water borne pathogens. Since then, the
invention and incorpora- tion of many new treatment technologies in the
late 1900s has further enhanced pub- lic safety. Yet breakage, which
includes corrosions and leaks, of any pipe, regardless of material, has the
potential to reintroduce waterborne pathogens to the consumer through
infiltration of the pipe. Similarly, breaking sewer pipes and wastewater
pipes are a concern for the environment and potential human impact
(basement backups and contaminated streams).
Chronic health impacts are important to recognize, and they may be
associated with broken or fully functional pipes. Chronic health impacts
have been related to chemicals or contaminants in drinking water that
may be carcinogenic. For example, some of the drinking water treatments
applied can result in potential public health impacts. The EPA sets drinking
water standards that regulate the allowable levels of substances of
concern; and, the EPA has an action-forcing mechanism to consider new
substances for regulation on a regular basis.
The literature on acute and chronic public health impacts from
contaminated water is well established and not the primary concern of
this report. While somewhat dated, B /BUJPOBM 3FTFBSDI $PVODJM
QVCMJDBUJPO QSPWJEFT B HPPE GPVOEBUJPO JO MJTUJOH BOE
describing some of these adverse health impacts and their drinking
water causes,
(/BUJPOBM 3FTFBSDI $PVODJM (64) 4BGF %SJOLJOH 8BUFS $PNNJUUFF.
8BTIJOHUPO (%$): Page
1982). Drinking water safety is important, and it is local gove1rn1ment
that provides some of the safest drinking water to hundreds of millions of
people daily. Providing 24-hour service all the time is an expensive
proposition and local government invested over $65 billion in 2015, and
still it is a challenge to ensure uninterrupted service.
Until the late 1980s, EPA was responsible for testing and certifying that
materials were safe to be used for both drinking water and waste water
pipes. Following a decision by the EPA to no longer do this work, the EPA
(through a regulatory process) QBTTFE UIF SFTQPOTJCJMJUZ UP UIF /BUJPOBM
4BOJUBUJPO FPVOEBUJPO (/4F). 4JODF UIFO UIF
/4F IBT EPOF BMM PG UIF UFTUJOH BOE SFUFTUJOH PG QJQJOH NBUFSJBMT UIBU
HP JOUP XBUFS
infrastructure projects. It is important to note that all materials, from the new
and inno- vative to the traditional, are tested and retested to ensure
their safety.
5IF A/4*//4F 61 4UBOEBSE FOTVSFT UIBU ESJOLJOH XBUFS QJQFT BSF TBGF
GPS VTF BOE
that all pipes are tested for safety equally. The materials are tested before
the pipes are used commercially, by subjecting them to multiple tests,
including if the pipes leach chemicals or other substances into the water.
Once the materials are certified, the test- ing does not stop. Materials used
in pipes are continuously tested throughout produc- UJPO CZ /4F. 5IFTF
BVEJUT BSF EPOF SBOEPNMZ UXJDF FBDI ZFBS BOE BMTP FOTVSF UIBU
quality control tests are being done by the manufacturer.
The Conference of Mayors adopted policies urging cities to consider
environmental impacts using life cycle analysis (LCA) when available
and appropriate. LCAs have become more widely available, and the
Conference of Mayors provided an example in relation to pipe materials
(Anderson, 2013). It is important for mayors to weigh public safety
(including environmental externalities) as well as cost and performance of
pipes. Typically, an LCA considers several stages: production/extraction,
construction pro- cess, use, and end of life. Each stage of an LCA
identifies inputs and outputs to assess energy use, wastes, emissions and
their environmental impact. The LCA provides “… transparent disclosure
of environmental impact and is used to standardize industry
comparisons” (Sustainable Solutions Corporation, Royersford, PA).
Standardized com- parisons provide a good tool to assess competing
product claims technically and ana- lytically. Local procurement officials
may have authority to request the results of an LCA for a single pipe
material or multiple pipe materials. This report will not address the
claims and counterclaims on pipe material environmental impacts.
However, we encourage local officials to consider LCAs when making
water infrastructure decisions. The pipe industry is moving towards
providing more transparent and higher-quality information on their
environmental performance that may be of use to local officials. For
example, Uni-Bell PVC Pipe Association commissioned an LCA on potable
water, gravity storm water, and sanitary sewer pipe systems that was
reviewed in accordance with ISO 14044 (a standardized review protocol
ensuring the accuracy of an LCA). The LCA led to a PVC pipe
Environmental Product Declaration (EPD), which complies with
*40 14025 TUBOEBSET BOE XBT JOEFQFOEFOUMZ DFSUJGJFE CZ /4F
*OUFSOBUJPOBM.
There are many good resources that local officials can use to determine
the safety of piping materials and whether or not they are appropriate for
their specific project. These safety standards are based on data collected
over long periods of time and are reliable.
CONCLUSION
We reported in our 2013 review of local government water and sewer
pipe pro- curement practices that closed procurement that prohibits
competition among different pipe materials is prone to inefficiencies and
the potential for substantial lost opportunity costs. Cities invest significant
resources in water and sewer pipes, then and now. The case for
considering alternative pipe materials that might perform as good or
better than conventional pipes used today, and cost less, is compelling. In
the 2013 report several communities provided anecdotal casesP awgheer e
alternative (PVC) pipe materials were chosen, and cost saving1s2 were
achieved. A business case approach made pos- sible through open bid
procurement was suggested to compare competitive pricing and overall
value, and the local procurement official could find assistance from knowl-
edgeable consulting engineers, or develop the tools needed to make
accurate cost and performance comparisons.
Five years later, 2018, the case for open competition is stronger. Closed
procurement and low bid policies may be state law in some cases but
there is often an opportunity for exception. Whether state law or local
policy, the fact is that new information (both knowledge and analytic tools)
on cost, performance, public health and environmental
impact is readily available. Mayors and their departments can use this
information to lower or stabilize their pipe capital costs while meeting
safety and performance requirements.
A standardized cost per foot analytical tool such as the BCC and
Datahawks research used is of practical utility to local officials who make
procurement decisions and seek efficiencies and cost savings. The
AWWA reports and Folkman’s survey make a compelling case for the
magnitude of the challenge to maintain and upgrade the underground
infrastructure. Folkman specifically emphasizes the increasing number of
local systems making decisions about replacing legacy pipes, such as cast
iron, that are aging out and the importance of comparing pipe cost,
performance and environmental impacts when procuring new pipes. These
decisions will have a 50 to 100-year design life expectation.
Public health impacts are substantially mitigated when potable water
pipes are maintained and operated properly. The potential for health
impacts increases when pipes fail, and sometimes when treatment and/or
biofilm protocols are changed or modified. Pipe failure can result in the
introduction of waterborne parasites and inor- ganic elements to the tap.
Testing frequently detects organic contaminants in pipes with no- or
interrupted-flow. For example, stalled water and residual chlorine in
drinking water pipes broken by an earthquake have resulted in detection
of tri-halo-methane (THMs) at the tap when service continued. Asset
management best practices as well as detection technology can effectively
address pipe failure.
Public safety includes environmental impacts as well as public health.
Reports and testing results on all materials used in water infrastructure for
public health are widely BWBJMBCMF GPS SFWJFX GSPN BDDSFEJUFE UIJSE
QBSUJFT, JODMVEJOH /4F. 8 F TUBUFE JO 2013,
and restate here, the use of Life Cycle Analysis helps differentiate the
environmental impacts of pipe materials according to a standard method
of comparison. Some pipe providers seek additional differentiation
through an Environmental Product Declaration, which requires third party
verification of ISO certification. This sets a high bar for com- paring
environmental impacts.
Discussion Questions
As this paper points out there is plenty of evidence to show that open
procurement and bid processes are the future of “good government.” The
big question is why is there still substantial local resistance to making any
change? Is the resistance due to a lack of information and training of local
procurement officials? Are consulting engineers being allowed to share
new ideas or are they limited by the existing norms or local/state ordi-
nances or laws? Are the cost, performance and safety information
presented in a way that is amenable to local procurement processes?
Changing behavior relies on changing attitudes, and the transparent
and account- able processes of open bid competition can lead the way.
Mayors are strategically positioned to play the leading role.
Page
13
REFERENCES
American Water Works Association, 2012, Buried No Longer: Confronting
Ameri- ca’s Water Infrastructure Challenge, Denver, CO.
American Water Works Association, 2017 State of the Water Industry
Report, AWWA, 2017, available from: https://
www.awwa.org/publications/opflow/abstract/ articleid/65762696.aspx.
American Society of Civil Engineers (ASCE), “2009 Infrastructure Report
Card,” available from: https://
www.infrastructurereportcard.org/2009/sites/default/files/
RC2009_drinkwater.pdf
American Society of Civil Engineers (ASCE), “2017 Infrastructure Report
Card,” available from: http://www.asce.org/reportcard/
Anderson, R., March 2013, Municipal Procurement Process Improvements Yield
Cost- Effective Public Benefits, Untied States Conference of Mayors,
Washington, DC.
Anderson, R., September 2007, National City Water Survey 2007 – The
Status of Asset Management Programs in Public Water and Sewer Infrastructure in
America’s Major Cities, U.S. Conference of Mayors, Washington, DC.
BCC Research, February 15, 2016, Special Research Study: Comparison of
Pipe- line Installation Lengths and Costs in Two Cities, prepared for the American
Chemistry Council, (BCC Research, 49 Walnut Park, Wellesley, MA).
BCC Research, April 23, 2016, Special Research Study: Comparison of Water
Main Pipe Installation Lengths and Costs in North and South Carolina: Raleigh,
Charlotte, and Spartanburg/Greenville, prepared for the American Chemistry
Council, (BCC Research, 49 Walnut Park, Wellesley, MA).
B$$ 3FTFBSDI, /PWFNCFS 3, 2016, Special Research Study: Comparison of
Water Pipe Installation Lengths and Costs in Michigan: Port Huron, Grand Rapids,
Monroe, and Livonia, prepared for the American Chemistry Council, (BCC
Research, 49 Walnut Park, Wellesley, MA).
Datahawks, LLC, December 31, 2016, Special Research Study: Comparison
of 8” and 12” Water Main Pipe Installation Lengths and Costs in Closed
Competition and Open Bidding Arkansas Communities, (Datahawks, LLC, 4119
Lee Ave., Little Rock, AR). BCC Research, February 24, 2017, Special
Research Study: Nationwide Pipe Length and Cost Savings Evaluation, prepared
for the American Chemistry Council, (BCC
Research, 49 Walnut Park, Wellesley, MA).
Folkman Ph.D., P.E., Steven, (March 2018), Water Main Break Rates In the USA
and Canada: A Comprehensive Study - An Asset Management Planning Tool for
Water Utilities Water Main Break Rates In the USA and Canada.
Mack EA, Wrase S (2017) A Burgeoning Crisis? A Nationwide Assessment of
the Geography of Water Affordability in the United States.
/BUJPOBM ADBEFNJFT 1SFTT (64), 1982, Drinking Water and Health
Volume 4.
/BUJPOBM 3FTFBSDI $PVODJM (64) 4BGF %SJOLJOH 8BUFS $PNNJUUFF.
8BTIJOHUPO (%$):
*4B/ -10: 0-309-03198-2
/4F *OUFSOBUJPOBM, 2015, Product Potable Water, Gravity Storm Water, and
Sanitary Sewer Pipe Systems Date of Issue May 15, 2015 Period of Validity 5
Years Declaration
/VNCFS &1%10047
&1% 1SPHSBN 0QFSBUPS /4F *OUFSOBUJPOBM 789 / . %JYCPSP 3E. AOO
ASCPS M* 48105
USA www.nsfsustainability.org.
Sustainable Solutions Corporation, Evaluating Life Cycle AssessmPenatgs efo r
Under- ground Infrastructure, Royersford, 14 PA,
www.sustainablesolutionscorporation.com.
United States Government Accountability Office, September 2016,
Water Infra- structure: Information on Selected Midsize and Large Cities with
Declining Populations. GAO 16-785.
APPENDIX:
BCC RESEARCH AND DATAHAWKS
SUMMARY FINDINGS
Ohio Communities
The two Ohio communities with closed bid systems paid average cost
32%-35% higher per foot for pipe ($51.83), compared to the one open bid
county that had a near even blend of DI and plastic pipe ($33.33).
Carolina Communities
The one open bid community procured a near even blend of DI and
plastic and had categorically lower cost except for
Spartanburg/Greenville 4” to 6” pipe. For 12” pipe, closed systems paid
an additional 50% markup ($57.73 per foot compared to $28.21).
Michigan Communities
Two open bid communities in Michigan utilized DI and plastic blends,
and where the blend was near even the cost was considerably lower than
the two no bid communities using DI only. The report also found clear
evidence of the added cost ‘closed’ procure- ment policies impose on
local governments:
“Furthermore, ductile iron pipe of the same diameter was found to be
less costly in open bid cities than in closed bid cities: 8-inch ductile iron
pipe cost, on average,
$71.69 per foot in Port Huron (closed) and $62,39 in Grand Rapids
(closed), in com- parison to $58.60 in Livonia (open) and 55.64 in Monroe
(open). Therefore, even when ductile iron is considered by itself, 8-inch
pipe costs in closed bid cities were up to
$16.05 higher than in open bid cities, equivalent to a pipe cost inflation of
up to 29%.” Michigan also demonstrated similar savings, with closed
systems paying 27% to
34% more in capital costs.
Arkansas Communities
Arkansas communities exhibit some cost complexity. The one open bid
community procured plastic pipe, but DI pipe in one of the closed bid
communities was slightly less costly.
The other two closed communities procuring DI pipe had a cost nearly
twice that of plastic, except for 8” pipe procured in Hot Springs.
Page
15
OHIO COMMUNITIES
LOCAL UNIT OPEN-BID PIPE 2015 PIPE
CITY MATERIAL AVERAGE DIAMETE
COST PER R
FOOT (INCHES”)
COLUMBUS, OH NO DUCTILE $26.73 4” TO 6”
IRON
$4.6 MILLION $53.39 6” TO 12”
INVESTMENT
80,621 FEET OF PIPE $82.98 OVER 12”
INSTALLED
DELAWARE YES DUCTILE $15.23 4” TO 6”
COUNTY, OH IRON 44%
INCLUDES: DELAWARE, DUBLIN, WESTERVILLE, & PLASTIC $33.65 6” TO 12”
POWELL 56%
$7.9 MILLION INVESTMENT $80.83 OVER 12”
150,700 FEET OF PIPE INNSETIAGLLHEBD OR
HOODS
DAYTON, OH NO DUCTILE $31.49 4” TO 6”
IRON 90% Reference - BCC, February 15,
2016
$1.8 MILLION WITH PLASTIC $51.71 6” TO 12”
INVESTMENT PLASTIC 10%
PIPE
CA3R7O,0L3I3N FAEE TC OOFM PMIPUE NEITXICESEPTION $122.73 OVER 12”
INSTALLED S IN
LOCAL UNIT OPEN- PIPE 2015 PIPE
BID CITY MATERIAL AVERAGE DIAMETE
COST PER R
FOOT (INCHES”)
CHARLOTTE, NC YES DUCTILE $22.15 4” TO 6”
IRON 47%
$1.2 MILLION INVESTMENT PLASTIC 53% $25.18 6” TO 12”
37,800 FEET OF PIPE INSTALLED $65.87 OVER 12”
RALEIGH, NC NO DUCTILE $29.77 4” TO 6”
IRON
$1.76 MILLION INVESTMENT $57.73 6” TO 12”
30,021 FEET OF PIPE INSTALLED $127.11 OVER 12”
SPARTANBURG/GREENVILLE, SC NO DUCTILE $19.98 4” TO 6”
IRON 98.6%
$4.6 MILLION INVESTMENT PLASTIC $33.68 6” TO 12”
1.4%
185,443 FEET OF PIPE INSTALLED $85.2R8eference - BCOC,V FEebRru 1ar2y ”15,
2016
Page
16
MICHIGAN COMMUNITIES
LOCAL UNIT OPEN-BID PIPE 2015 PIPE
CITY MATERIAL AVERAGE DIAMETE
COST PER R
FOOT (INCHES”)
LIVONIA, MI YES DUCTILE $57.37 8”
$1.5 MILLION IRON 6% N/A 12”
INVESTMENT PLASTIC
94%
26,000 FEET OF PIPE
INSTALLED
MONROE, MI YES DUCTILE $29.77 8”
IRON 44%
$1.76 MILLION PLASTIC $57.73 12”
INVESTMENT 56%
30,021 FEET OF PIPE
INSTALLED
GRAND RAPIDS, NO DUCTILE $70.88 8”
MI IRON
$0.69 MILLION $74.39 12”
INVESTMENT Reference – BCC Research, November
9,779 FEET OF PIPE 3, 2016
ARINKSATANLSLEADS COMMUNITIES
PORT HURON, NO DUCTILE $104.33 8”
MLOI CAL UNIT OPEN- IPRIPOEN 2015 PIPE
$B2I.D8 MCILILTIYON MATERIA AV$E1R07A.7G4E DIA1M2E”TE
INVESTMENT 27,075 L COST PER R (INCHES”)
FHEOETT O SF PPRIPIEN GS, AR NO DUCTILE FOOT$32.23 8”
INSTALLED IRON
$236,080 MILLION 2015) $122.60 12”
INVESTMENT (2014 &
26,000 FEET OF PIPE
LINITTSLTE ARLOLCKE,D NORTH LITTLE ROCK, SHERWOOD, $161 1
CMAEUMNELTLERAL NO DUCTILE .$71119.41 28””
$1.76 MILLION INVESTMENT
ARKANSAS WATER: IRON
30,021 FEET OF PIPE INSTALLED
SPRINGDALE, AR NO DUCTILE $35.77 8”
IRON
$0.38 MILLION $58.16 12”
INVESTMENT
7,655 FEET OF PIPE
INSTALLED
FAYETTEVILLE, AR NO PLASTIC $38.40 8”
$109,069 MILLION $61.02 12”
INVESTMENT 1,825
FEET OF PIPE Page
INSTALLED 17
The Mayors Water
Council
The Mayors Water Council (MWC) assists local governments in providing
high quality water resources in a cost-effective manner.
MWC provides a forum for local governments to share information on
water technology, management methods, operational experience, and
financing of infrastructure development.
MWC monitors and responds to federal legislative, regulatory or
policy proposals affecting the delivery of municipal water services.
MWC also provides a forum to assist local governments in exploring
competition and public-private partnership approaches, and
alternative methods of financing water infrastructure development.
Mayors Water Council Co-Chairs
2018 Mayor Jill Techel, City of
Napa CA Mayor David Berger, City
of Lima OH
THE UNITED STATES CONFERENCE OF
MAYORS
1620 Eye Street, NW
Washington, DC 20006
Tel: 202-293-7330
Fax: 202-293-2352
usmayors.org
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