Procurement Option Details
1 | Design -Bid -Build (DBB)
The DBB model of procurement is a traditional, public model. Engineering consultants would be
contracted by the CRD to provide high level design of the components of the wastewater treatment
program. The various components would be put out for public tender with the lowest bidder awarded
the contract. Operation and maintenance of the facility would be the responsibility of the CRD. DBB is a common approach used by public sector agencies, and provides a greater focus on the assets
and technical specifications of a project.
Key Features
• CRD controls the bidding process
• Allows for greater public input and discussion
• Government retains ownership and control of assets
• Provides for greater phasing of components, integration of new technologies
• CRD retains some risks and potential for greater cost, schedule and lifecycle risks
2 | Construction Management at Risk (CMAR)
CMAR is similar to a DBB model of procurement in that facilities are publicly owned and operated.
In a CMAR model, however, a construction manager would be hired by the CRD to provide
preconstruction services such as constructability, innovation, schedule and cost estimating as the
design for facilities progresses. This would allow both design and construction processes to take place concurrently. The CMAR model under consideration by the CRD would also provide for a Guaranteed Maximum Price (GMP), (once the scope is clearly defined) stipulated under contract between the Construction Manager and the CRD.
Key Features
• Allows for fast tracking and early construction start with early price predictability
• CRD maintains control and ability to influence design
• Provides for greater flexibility, more public input and discussion
• Government retains ownership and control of assets
• CRD retains some risks and potential for greater cost and schedule and lifecycle risks
3 | Progressive -Design -Build (Pro DB)
A PDB model of procurement places greater responsibility on private contractors to develop both
high level and detailed design requirements for wastewater facilities. Primary equipment selection,
space planning and layouts would be defined for the CRD by bidders; basic requirements for a wastewater system would be defined by the CRD.
Key Features
• CRD maintains schedule flexibility and standards for equipment
• Provides some price certainty once contracts are finalized
• Increased responsibility on bidder for design and construction risk
• Government retains ownership and control of assets
• Potential for use of short lifecycle equipment or equipment failure and thus greater long term cost
• Lack of long term warranties if bidder staff do not operate facilities
• Potential limiting of innovation to only the construction phase
4 | Performance -Design -Build (Per DB)
In a Performance DB model the CRD would transfer greater design responsibility to private bidders.
Approximately 10% of facility design work, as well as setting minimum standards for certain equipment, would be completed by the CRD. Flexibility in this model exists through choice of specific wastewater systems, equipment and materials that would be used, as detailed plans can be provided for critical areas. However, the majority of design and construction materials are made by the private sector, opening the project up to both innovation or corner cutting. After a comprehensive proposal process, the CRD would select a contractor to design and build the facilities for a guaranteed maximum price.
Key Features
• CRD may specify detailed design and clear standards for key equipment
• Some price certainty is provided once plans are finalized
• Design and most construction risk rests with private builder
• Government retains ownership and control of assets
• Potential for use of short lifecycle equipment or equipment failure and therefore greater long term cost
• Potential limiting of innovation to the construction phase
• CRD would maintain and operate the system
5 | Design -Build -Operate -Maintain (DBO)
The DBO model of procurement represents the commonly understood Public-Private Partnership
(P3) to procure and operate infrastructure. Using a competitive procurement process a team comprised of an operator, engineering consultant and general construction contractor, together with specialist services providers, would be selected to design, build, operate and maintain wastewater facilities over a long term period.
Key Features
• Potential for an integrated wastewater system
• Use of lower cost public financing rather than third party debt/equity
• Some risk transfer provided for CRD; potential innovation
• Government retains ownership and control of assets
• Lack of flexibility in design alterations and phasing alternatives, once an agreement is in place
• Potential for use of short lifecycle equipment or equipment failure and therefore greater long term cost
6 | Design -Build -Finance -Operate -Maintain (DBFO)
A DBFO model is an arrangement between a public sector body and a private sector body which results in the private sector providing infrastructure and/or services traditionally delivered by the public sector. Bidders are responsible for assembling a team of firms to collaborate in the delivery of wastewater treatment for the CRD. A key element of a DBFO is transfer of some risk from the public to the private sector partner.
Key Features
• Potential for an integrated wastewater system
• Some risk transfer provided for CRD; potential innovation
• Government retains ownership and control of assets
• Service provider responsible for hiring operations staff
• Lack of flexibility in design alterations and phasing alternatives, once an agreement is in place
• Potential for use of short lifecycle equipment or equipment failure and therefore greater long term cost
• Third party financing would be higher than CRD obtained financing for a portion of the project
• Operating contract could require voter assent, resulting in delays
• More difficult to terminate contract with financing component.