Civil Engineering Reference
In-Depth Information
1998, concluding with acceptance at the end of 2000. The Tolt Treatment Facility is
currently operated by American Water under the original DBO contract terms and
conditions.
Why the Owner Chose Design-Build-Operate
The DBO approach was selected because, by combining design, construction, and
long-term operation of the facility into one contract, the life-cycle costs of the new
facility could be best optimized and performance risks could be allocated most
effectively. The 120-mgd (454-ML/d) Tolt project is one of the largest water treat-
ment plants in the United States to be developed using this type of contracting. SPU
utilized the DBO procurement process to encourage teams to use their entrepre-
neurial initiative to provide the best solution for the project.
At the outset of the DBO procurement phase, SPU established the following
project philosophy for the implementation of the DBO project:
• The City of Seattle (City) described its needs in terms of performance
requirements and standards, and then allowed prequalified DBO teams to
propose solutions for how to achieve these requirements.
• Technological innovation was encouraged within the range of proven tech-
nology, and competition was used to achieve both technical innovation and
lower life-cycle cost.
• Risk was allocated between the City and the DBO contractor in a manner
that minimizes overall project costs and contingencies (i.e., assigns the risk
to the party best able to manage it).
• Not having ever operated a water filtration plant, the City did not have expe-
rienced operating personnel and was willing to outsource this important
function.
Success Outcomes
This facility has become a model reflecting how the use of the DB process coupled
with long-term operation can cost-effectively address municipal water treatment
challenges. SPU estimates 25-year life-cycle savings due to use of the DBO model to
be $56 million, with $37 million in savings resulting from DB savings and $19 mil-
lion from operations phase savings.
Search WWH ::
Custom Search