Faced with the need for a fast track project, the city of Hialeah, Fla. is utilizing a design-build-operate (DBO) project delivery approach for the Hialeah Reverse Osmosis Water Treatment Plant. SAIC is assisting the city with the development of the procurement strategy; developing the procurement documents; assisting in the development of the service agreement for DBO contractor construction, commissioning, and acceptance testing activities; coordinating associated city improvement projects procurement activities; and serving as a fact-finding entity for the city's Blue Ribbon Committee responsible for selecting the DBO contractor.
SAIC also conducted workshops with the city and its other team members to develop an overall strategy and approach for the DBO procurement. The workshops determined a balance between city control and DBO contractor flexibility on a variety of technical, risk, and financial issues. From this, the city developed its preferred risk posture and established the schedule for the solicitation process.
The plant is scheduled to begin commercial operation on March 30, 2012, with a capital cost of about $106.9 million for the construction and an overall life-cycle cost of approximately $193.3 million. The construction cost includes the plant, the wellfield, the disposal wells, and the supporting pipelines. In the $193.3 million, $85.5 million covers the net present value of the 20-year operation of the project. SAIC has estimated the DBO alternative delivery method used in this procurement will save the city a net present value of about $88.8 million over the life of the contract as compared to a conventional delivery approach.
For more information about our business solutions and capabilities, please contact us today.