Even before the federal shutdown, a new U. S. Department of Agriculture official had held up funding for two city water projects, insisting on title searches and proof of city right-of-ways, which had never been required for past USDA grants/loans.
The city has satisfied those new requirements and WSPI 1 and WSPI 2 (water system performance improvements) will have received official USDA loan documents for the projects in about 30 days, City Manager Gary Whitehead told commissioners at their Dec. 3 meeting. With loan documents in hand, the city can then put the projects out to bid, he said.
Both projects are critical to addressing water leaks, which have wasted up to 70 percent of water produced by city wells in the summer, lessening to a still frightening 45 percent or so in the winter. The lowest percentage of leakage water-department Supervisor Jamie Forman has seen during her two and a half years of tenure is 27 percent. Some states, such as Washington, have rules that water leakage be 10 percent or less, which averages nearly 39 inches of rain a year compared to Truth or Consequence’s 10.9 inches. New Mexico’s 14.6-inches average.
WSPI 1
WSPI 1 will address the city’s water-pressure problem, which is uneven, the surges causing breakages, making the ongoing “patching” an exercise in near-futility, since the pipe breaks a short distance down the line when the water is turned back on.
WSPI 1 will replace “pressure reducing valves” or PRVs throughout the city water system, as well as replacing over 15,000 linear feet of pipe, in some cases with larger diameter pipe, which will also reduce pressure. Here is a link to the city’s website on WSPI 1, which includes maps: https://www.torcnm.gov/develop/city_blueprint/wspi-1/index.php
Funding from the USDA includes a $2.72 million grant, a $4.81 million loan, the total project coming to $7.53 million.
WSPI 2
WSPI 2 will replace old pipes in the Veater Street and Riverside Drive areas, where most of the leaks are happening.
Here is a link to the city’s website on WSPI 2, which includes maps:
https://www.torcnm.gov/develop/city_blueprint/wspi-2/index.php
Funding from USDA includes a $7.227 million grant, a $2.673 million loan, the total project coming to $9.9 million.
Invitation to Bid
Both WSPI 1 and 2 will use the “invitation for bid” procurement process, which is required for clearly defined projects. All bids are final and no negotiation with bidders is allowed. The lowest bidder is awarded, unless their price is 10 percent above or below the engineer’s estimate. The city could then give reasons for going to the next-lowest bidder. For example, the bidder’s documents may show missing materials or parts that demonstrate a lack of understanding of what the project entails. If all the bids are 10 percent or more than the engineer’s estimate, the city may cancel all of the bids.
I wanted to give Whitehead credit for using the IFB method of procurement instead of the city’s usual “Request for Proposals” or RFP procurement method. For years I have reported the city as using the RFP procurement method for nearly 100 percent of its projects. RFPs allow for negotiation with the contractor and are awarded based on “qualifications,” a much more subjective process than one based on price. It allows city staff much more discretion with the possibility of favoritism entering the award process, as well as leading to higher costs.
After discussions with Whitehead, and after looking at the city’s web page on past procurements, posted from 2020 to current day,
https://www.torcnm.gov/your_government/finance/bid_archives.php
I discovered that for years–before Whitehead–the city staff has used RFP as a generic term for IFB or RFP procurements.
Under Whitehead and Chief Financial Officer Jocelyn Holguin, such imprecise communication is gone, and communication among staff members that combine finance, procurement and construction aims, as well as their increased understanding of different procurement methods is occurring.
Whitehead is studying and questioning engineering plans as well, which no doubt is driving down costs.
word: WHEW