PROCUREMENT INSIDERS 2 MIN READ

Automating Water and Wastewater Agency Procurement

Written by Sample Hubspot User

June 5, 2023

Key Benefits of Automation in Bid Management

Water is a streaming topic across the country. There are approximately 150,000 public drinking water systems and 16,000 publicly-owned wastewater treatment systems in the US, according to the Environmental Protection Agency and the US Department of Homeland Security.

Despite the diverse sizes, goals, and services of water and wastewater systems, the agencies that manage them rely on the same key procurement capabilities:

1. Vendor Management
2. Bid Management
3. Contract Management

VENDOR MANAGEMENT: The Metropolitan Water District of Southern California (MWD), the largest supplier of treated water in the United States, has mandated goals on construction projects and takes vendor outreach efforts ad diversity inclusion seriously.

More than a decade ago, MWD implemented the Vendor Management, Bid Management, and Business Certification Management (SBE Certification) modules of the PlanetBids PB System™. The ability to perform quick quotes – including an easier way for bidders to accept contract terms and conditions – help field staff contract quickly with suppliers and contractors.

"With 1000 new supplier certifications and renewals annually, it's vital for our online system to be very user-friendly," MWD Certification Officer Carmen Bermudez-Bracy said. "With an annual $250 million construction spend, it is important to encourage Small Business and Disabled Veteran-Owned Business participation while tracking and reporting on those projects."

Renewable Water Resources (ReWa), a smaller organization that has been purifying wastewater and replenishing lakes, streams, and rivers in upstate South Caroline since 1925, also needed to automate, but was initially concerned about how it would be received by the vendor community.

"The move from a paper process to an online submittal was a bit daunting for smaller, mom-and-pop companies," Stephanie Selman, ReWa's Senior Purchasing Agent, said.

To assist customer departments, ReWa held meetings with internal teams and PlanetBids gave in-depth training. Selman emphasized the importance of contracting with a company that can quickly respond to questions or requests for help.

"Some eProcurement systems might outsource or minimize this in their offering," she said. "PlanetBids has tremendous customer support."

BID MANAGEMENT: In the past, ReWa's construction solicitations were 1000 to 2000 pages, and bidders submitted large paper bundles as responses. eProcurement eliminates paper costs and travel to submit proposals.

"The bid opening is now done online with the push of a button," Selman said. "We no longer set up a room for bidders, hand-stamp the proposals, and then conduct the in-person bid opening. This saves time and fuel costs for the contractors as well."

CONTRACT MANAGEMENT: When paired with the Vendor Management module of the PB System, Contract Management enables contract administrators, procurement, and public works to maintain and retrieve up-to-date relevant information regarding contracts, reducing the need to search through endless documents.

The Santa Clara Valley Water District, which provides stream stewardship, wholesale water supply, and flood protection in Northern California, was transitioning from a manual purchasing process to an Enterprise Resource Planning (ERP) software application in 2020 when the COVID-19 pandemic forced its team to work remotely.

The software was not yet implemented and had limitations, so Valley Water's 21-person team pivoted quickly and chose the same three PB System modules that MWD was using, adding the Emergency Operations module that enables an organization to retrieve up-to-date information on vendors 24/7, even in the event of an emergency. Users can also search for emergency vendors from a master database shared by other public agencies.

"While the pandemic pushed us over that hill, I would encourage others not to wait for an emergency to automate," said Kimberly Linser, Management Analyst II at Valley Water. "Engage in the process, and choose the modules to take care of business now."

 

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