Water Main Repair, Replacement and Rehabilitation (WMR3) Strategic Sourcing Team Gary Gumm, P.E., Interim Chief Operating Officer – Team Sponsor Hala Flores, P.E., Development Services Group – Team Lead Jim Baehr, GreyBeard Advisors – Team Advisor Ahmed Baig, Office of Procurement Ross Beschner, P.E., Systems Inspection Group Jaime Garcia, Material Management Group Rudy Gonzales, Office of Procurement Dan Hamilton, Systems Inspection Group Julie Pohutsky, Budget Office Lisa Malone, SLMBE Marcia Tucker, Infrastructure Systems Group – David Venanzi, Technical Services Group

2 Background To better understand the current state at WSSC and how other major water utilities are handling similar programs, the Team completed considerable research including looking into historic projects and spend history, seeking best practices by benchmarking with other utilities, outreaching to designers and contractors by completing RFIs and following ‐ up on the RFI with multiple interviews. WMR3 Sourcing Project Overview Goal The WSSC WMR3 Sourcing Team has been tasked with identifying methods for reducing the overall cost of the WSSC water main repair, replacement and rehabilitation design and construction contracts. The WMR3 team has established a goal of achieving a 15% reduction in Total Cost of operations while completing the same volume of work on a fiscal year basis (i.e. 1% of the WSSC distribution system, or 55 miles per year). Research and Outreach

3 Expected cost reductions from implementing the WMR3 Strategy in: Salaries, Material and Construction WMR3 Sourcing Project Overview Current Average Total Cost of Operation = $1,252,094 per mile

4 WMR3 Sourcing Project Overview By implementing the WMR3 Sourcing Strategy the Commission and it’s ratepayers are expected to benefit from the following: Salaries: Shortened cycle time and reduce internal costs from completion of design to start of construction Materials: Ductile Iron Pipe will be furnished through WSSC’s recent sourcing agreement with HD Supply Expanded use of PVC pipes Construction: Improved quality during construction by: Using pool of pre-qualified contractors. Performance will be evaluated after each task order ensure that good performance is maintained. Obtaining constructability input from contractors at 70% design completion Minimizing reliance on temporary water service by making parallel trench replacement as the preferred method of construction

5 WMR3 Sourcing Project Overview Contract Structure – Indefinite Duration Indefinite Quantity (IDIQ) For routine replacements and or/relocations of water mains (up to 12 inch diameter) and sewer mains (up to 10 inch diameter) and their associated appurtenances Base term of two (2) years with two (2) two year option terms – to be exercised at the discretion of the Commission The “not to exceed” amount for this multiple award contract is $80,000,000 for the original two year term 20% SLMBE subcontracting to certified MBE firms that are African-America, Asian-America, Native-American, and/or WSSC approved SLBE firms Pool of 10 qualified contractors Task orders will be awarded on a competitive and/or negotiated basis. Vendors are not guaranteed any work under this contract. Contractors must bid on half of the task orders issued yearly, a forecast of upcoming tasks will be provided to the vendors in advance

PROCUREMENT PHASE Avg 4-6 months Advertise IFB Pre-bid Conference Responsibility Determination Award Contract Current IFB Project Delivery Method 6 DESIGNER Start 100% Design/Bid Ready Substantial Completion Start CONTRACTOR

Proposed IDIQ Delivery Method 7 Start 70% Constructability Review Maintain/Monitor Feedback Task Bid 2-4 weeks Value added PM0005A15 & DIP 1096 DESIGNER CONTRACTOR Substantial Completion Start Construction 100% Design Task Bid