OF HOUSTON, TX
DESCRIPTION OF PARTNERSHIP ARRANGEMENT
The Southeast Water Purification Plant is a regional facility which serves 13 cities, utility districts or water authorities in the Houston area. The City of Houston is the managing partner. Prior to its initial start-up in 1991, the City and its partners sought proposals from private firms for the operation and maintenance of the facility. A five year operating contract (through August, 1996) was awarded. The City initiated a "managed competition" program in 1996, soliciting competitive sealed bids from pre-qualified private firms. In addition to the private bidders, City of Houston employees, for the first time, participated in a competitive sealed bid process. The winning proposer was JMM Operational Services, Inc. The City employees' bid was fourth and the previous operator's bid was third.
ESTIMATED/ACTUAL COST SAVINGS -- IMPACT ON RATES
The result of this managed competition program was a savings of 43 percent,
approximately $12.7 million, over the previous contract.