Getting Started

RTU Site in Aspen, CO

Is your utility considering a major capital investment such as a pump, generator, chemical-feed system, telemetry, variable frequency drive or analytical equipment? Are you trying to comply with new Environmental Protection Agency rules but are unsure how to choose the correct product? If you answered yes, here are some guidelines to help ensure a good return on investment (ROI).

First make a list of the items absolutely necessary for the project, and a separate list of items not pivotal to the project but would be advantageous to include. Using radio telemetry as an example, you might need a flow signal and tank level from a new tank/pump station installation. You might like to add an intrusion alarm, security cameras, and a pump station flood alarm. Further, you might need to add in-plant telemetry to meet mandated turbidity reporting, and you might want to add automated flow and chemical-usage reports. It is important to distinguish between needs and wants early in the project, when you are defining the scope, in order to make tough financial decisions and justify the project to leadership and governing boards.

Once you have completed your need and want lists, it is time to prepare a bid or request for proposal. In some cases, the equipment might be part of a much larger design or project with complex drawings and specifications. In other cases, a simple sheet listing the needs and wants could be prepared for vendors, allowing them to provide pricing. In either case, ask that the vendors provide the following information in addition to cost:

  • Request an extensive reference list with a short project description, contact person, email address, and phone number.
  • Require written proof of how long the product manufacturer has been in business and how long the products have been in continuous service. Ask for actual installations such as, “Metro District installed 6 Motorola units in 1982 that are still operating in a reliable manner.”
  • Ask about product warranty and how long the manufacturer guarantees availability of replacement parts.
  • Ask how long the vendor has been in business and supplying the specific type and brand of equipment.

After receiving this information for a vendor or contractor, the next step is to call several references for each vendor or send them a questionnaire via email. Ask specific questions such as:

  • Was the project installed within budget?
  • Was the project installed on time?
  • Did the installation meet all requirements and look professional (plumb and square, properly grounded and surge protected, clean and tidy)?
  • What has been the failure rate of the provided equipment?
  • Did technical support meet expectations?
  • Did training meet expectations?
  • Were there unexpected problems? How did the vendor respond in order to help solve them?
  • Were complete operation and maintenance (O&M) manuals and drawings provided?
  • Was the vendor able to see the “big picture” and make suggestions that added value to your project?

By now you should have a good idea which manufacturers and vendors have a good product and reputation. Based on real-world examples, determine reasonable life expectancy for the product you are purchasing. Take the cost of the project (including both initial cost and anticipated annual maintenance costs) and divide it by the years of life expectancy. This yields a cost per year and will help you make an decision about the lowest-cost alternative. In many cases, you will find that the more expensive initial investment will be more cost effective in the long run.

Next, ask some pointed questions to your final qualifiers:

  • Can and will you provide a bond for a multi-year warranty? (Note that this may incur an additional charge, but a warranty is useless if the vendor won’t show up)
  • Describe a project that did NOT make it on to their reference list, and what was learned from the experience.

You are now ready to take your request to your Board members, or issue a purchase order to your selected vendor.

Article provided by Timber Line Electric & Control Corporation of Morrison CO.