Marketplace: The Wastewater Market

8/10/2019 Marketplace: The Wastewater Market

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MarketplaceThe Wastewater Market

Session 2-1


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Market Evaluation Basics

1. How many clients are in the market?2. Can these clients pay for our services?

3. Do these clients have a need to solve?

4. How many competitors are competing for your clients

business?

5. How does your business compare to your competitors?


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Our Nations Infrastructure

Over 19,739 sewer systems 800,000 miles of sewer mains

Most installed after World War II


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Aging pipes and inadequate capacity Symptoms:

Over 700 cities and towns in violation of the Clean Water Act

Over 900 Billion Gallons of untreated sewage illegally discharged each

year


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Washington D.C. 3 Billion gallons per year of raw

sewage illegally discharge

Miami, FL. 25 Million gallons per year of raw


Indianapolis, IN 7.8 Billion gallons per year of raw



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2011 EPA Congressional Report 20% of our nations streams unfit:

Fish and wildlife

Human recreation

Only 16% of streams assessed


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American Society of Civil Engineers Four year report card on Americas Infrastructure

D(+)


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The federal government share of wastewater infrastructure spending has shrunk from

78 percent in 1978 to just 3 percent today.


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Our Market

Water and Wastewater US market: $ 125 Billion per year Estimated market by 2020: $190 Billion per year

Wastewater Infrastructure and stormwater systems market: $39

Billion per year

AWWA estimates water and wastewater Infrastructurespending: 1 trillion over next 25 years

Sources:

ASCE 2013 Infrastructure Report 2012

EPA-Congressional Budget Report

ASCEFailure to Act Report

AWWA Sustainability Report


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RJN In the Market (2014)

RJN: $ 27M 0.02% of US market

0.07 % of WW & Stormwater


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RJN In the Market

Wastewater Inspections

and Studies Wastewater Design &

Construction

GIS & Software Services

Drinking Water

Stormwater & Misc.

Engineering

96% of work in sewers


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RJN In the Market

850 Clients1,600 projects


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Sales Coverage


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Sales CoverageDonna

Donna

Z

A

C

h

Clay

PaulJeff K

Stephen


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MarketplaceMarket Entrance Strategy

Session 2-2


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Evaluating Markets

1. How many clients are in the market?2. Can these clients pay for our services?

3. Do these clients have a need to solve?

4. How many competitors are competing for your clients

business?5. How does your business compare to your competitors?


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The Competition

Firm

Name(s)

Local/

Regional

National

Firm

Only Field

Service

Only

Engineering

Both Engineering

& Field Services

CDM X X

Brown

and

Caldwell

X X

MWH X X

B&V X X

H&S X X

ADS X XTREK X X

CES X X

Burgess

& Niple

X X


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The Competition

Boston, MA

Design Firms: 112

National Field Services Firms: 0

Regional Field Service Firms: 5

Indianapolis, IN

Design Firms: 84

National Field Service Firms: 1

Regional Field Service Firms: 6


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Develop and deliver exceptional Niche services by encouraginginnovation at all levels

Enter new geographic markets beyond Regional Offices

through Niche services

Sustain our presence by broadening client base anddiversifying capabilities through Core and Other Services

Organization-Wide Strategies


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Niche Services

Enhance our Portfolio of Niche Services

Incorporate Best-in-class Products and Services

Roll Out RPM

Integration of RPM / Telog Plan

RPM Implementation Plan for All Projects

Improve Mobile Data Acquisition Capability Improve Equipment Hardware

Improve Software Interface

Implement an Engineering Quality Control Program


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Sustain Our Presence

Niche servicesDifferentiation Flow

Monitoring, Modeling, SSES, Rehab

Design/RE in separate and combined sewer

systems


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Sustain Our Presence

EnhancementsGIS, Capital Planning, Asset

Management, etc.

Core servicesSupplemental SustainableServices - Program Management, Master Planning,

Design Build, New Sewer Design, Stormwater,

Water Distribution, Lift stations (new/rehab), WWTP,

Construction Phase Services.

Other ServicesDiversity Maintenance Management, Other


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Why Lead With Our Niche?

A niche establishes our credibility and industry expertise

Offer services that are not easily duplicated due to experience

and/or capital costs

Limited Competition

Develop client from niche to full service offering


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MarketplaceWilmette Story

Session 2-3


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WilmetteInitial Project

Initial Project (2012) - $133,385 Competitive Selection with Pricing

System Modeling and Recommendations

$20,000 Over Budget

Field Challenges Extra Report Effort

Poor Project?


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WilmetteKey Client Data

Affluent Client

Significant Basement Backups

Village Board Wants Action

Report Draft Report with Recommendations

Clients Requests Schedule Acceleration

Develop $25M Bond Program

Extra EffortProgram Development


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WilmetteProgram Initiation (2012-2013)

20123 Small Projects ($32,000 total)

2013Start Program $330,779Phase 1

Quick Hit Items

Flow Monitoring

Study for Core Project

$266,870Phase 2

Initial SSES

Preliminary DesignCore Project


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Wilmette Challenges

3 Follow Up Projects ($264,100 total)

Significant Construction Cost Increases

Challenges = Opportunity Need Park District Approval

Park District Requests Tight Window

Village Questions Feasibility

Design-Build Opportunity?

Key Hire NeededConstruction Manager


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WilmetteClosing the Deal

Multiple MeetingsStaff and Board

40% Design$226,134 Approved 7/8/2014 6 Week Push3 Sheets to 43 Sheets

Phase I Bidding

Phase II Pricing

JV and DB Agreements

$15,024,432 DB Contract Approved 9/9/2014


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Marketplace

Little Rock StoryMaturing aClient

Session 2-4


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Little Rock StoryMaturing a Client

First Project for LRW Flow Monitoring as a Dub to MWH

Used Project to Begin Developing a Relationship with Key Staff

Continued Building Relationship with Staff AfterCompletion of First Project

Used RJNs Reputation and Relationships to Obtain a

Sole Source 5-Year SSES Program

Completed 3 SSES Projects in First Years of Program


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At Beginning LRW Perceived RJN Only as a Field Service Provider

At End of 1stProject Continued Marketing Client by BD and PM

Client Asked RJN to Provide MH Rehab Design for First Study

Contracted with RJN to Provide Construction InspectionServices

Contracted to Train LRWs Staff to Perform ConstructionInspection


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For 2ndSSES Project LRW Requested that Hydraulic Modeling be Added to Scope

Also, Requested MH Rehab Design

Even Though LRW Now Perceived RJN as More Than aField Service Firm We were still Perceived as a Firm that Only Provided FM, SSES,

Modeling and Some Limited Design


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In 2009, LRW Decided to Update their SECAPDeveloped by MWH in 2002 SECAP was developed as a result of LRW being under a CO

due to suit by Sierra Club due to Sanitary Sewer Overflows

(SSOs) CO requires that all SSOs be eliminated by end of 2016

Purpose of SECAP

Update was to provide a review of where LRW was in meetingCO requirements and develop other alternatives in necessary

LRW originally thought that RJN was not qualified to provide theupdate and was looking at larger National Firms to do


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Based on RJNs past performance and our staff

relationships with LRW, we invited them to our Dallasoffice Dallas staff developed a presentation on our capabilities in flow

monitoring, hydraulic modeling and planning Based on this presentation, LRW decided to award the SECAP

update to RJN sol source


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SECAP update completed in 2010 and resulted inrecommendations for $180M of additional improvements,including: Flow Equalization Storage

Collection System Capacity Improvements Pump Station Upgrades

Changes to WWTP Operations


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RJN was selected for the First Design / RE Project fromthe SECAP recommendations based on: Deeper appreciation of RJN capabilities developed during the

workshops

SECAP update development Continued marketing efforts


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Cantrell Road Project Design of a 32 MGD pump station

Design of a 30 inch diameter force main


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Little Rock StoryConclusion

BD and PM must develop a strong relationship withclient staff

RJN must be seen as an extension of client staff

BD and PM must continuously convey to client full rangeof services that RJN can provide

Always be looking for the next opportunity with the client


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MarketplaceBaltimore County Story

Session 2-5


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Baltimore County Progression

2006Piggy Back on City Contract, and Local Firm

20062008 Establish Reputation 2009Differentiator in Selection

20102012 Selection as Prime

Project 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Rain Gauge$500K $500K $500K $500K $500K

JMT JV$5M

ACS Stemmers $820K

Force Mains $4.8M

South Area FM $5.5M

SRRR Plans $2.2M

On-Call FM $1.1M


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Rain Gauge ProgramContract 42903 (2006)

Piggy-back on BaltimoreCity Project Started in August 2006

45 Total County Network

Sites 11 Shared Rain Gauges

Two-Year Contract Extended 4 times (10 years

total)

Tried to extend for 10 yearterm

$2.5M contract budget todate

Established reputation Quality work

On-time deliverables Responsive to County

needs


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Project 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Rain Gauge$500K $500K $500K $500K $500K

JMT JV$5M

ACS Stemmers $820K

Force Mains $4.8M

South Area FM $5.5M

SRRR Plans $2.2M

On-Call FM $1.1M


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Joint Venture with JMTContract # 2005-10

On-Call Contact Started in October 2006

RJN does SSES studies

RJN did HydraulicModeling

JMT does Design

$5M Contract Budget toDate

RJN + $3-3.5M

Two Sewersheds Flow Monitoring

Field Work

SRRR Plan Development

Design


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Joint Venture with JMTContract # 2005-10

Differentiated from Other Consultant Clearly outperformed JMT

Go-to Contact for County, even though JMT was managing JVPartner

Asked to represent County in City-County modelingboundary condition dispute

Instrumental in establishing County Guidelines forPreparing SRRR Plans


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Project 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Rain Gauge$500K $500K $500K $500K $500K

JMT JV$5M

ACS Stemmers $820K

Force Mains $4.8M

South Area FM $5.5M

SRRR Plans $2.2M

On-Call FM $1.1M


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Subcontract to ACSCounty Contract # 2008-06

On-Call Contact Started in November 2009

One Sewershed

RJN subcontracted to ACS

Scope Provided flow meters

Limited manhole inspections

Hydraulic Modeling and Capacity Analysis

I/I Analysis

$622K initial contract $200K amendment to prepare SRRR plan


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Subcontract to ACSCounty Contract # 2008-06

Strategic Partnership (Balt Co / VA Beach)

ACS almost terminated by County RJN was asked if we could take over

County mandated that RJN become more involved in writingreport

Subcontract amendment

ACS assigned new Project Manager

County starts to ask When is RJN going to Prime one of

these?


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Project 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Rain Gauge$500K $500K $500K $500K $500K

JMT JV$5M

ACS Stemmers $820K

Force Mains $4.8M

South Area FM $5.5M

SRRR Plans $2.2M

On-Call FM $1.1M


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Force Main AssessmentContract # 2010-01

On-Call Contact Started in January 2011

17 Task Orders

$4.75M Contract Budget to Date

Two contracts/assessments teams RJN clearly outperformed the other team

Captured 80% of remaining work in last task order


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Force Main AssessmentContract # 2010-01

Two Teams RJN

PHRA/Pure JV

Clearly outperformed the other team On-Time, Under Budget

Captured 85% of Remaining Work after Priority ForceMains completed


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Project 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Rain Gauge$500K $500K $500K $500K $500K

JMT JV$5M

ACS Stemmers $820K

Force Mains $4.8M

South Area FM $5.5M

SRRR Plans $2.2M

On-Call FM $1.1M


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South Area Flow MonitoringContract # 2010-02

Flow Monitoring 8 Sewersheds Started in August 2011

One-Year Monitoring Period

December 2011-November 2012

130 Locations I/I Analysis

$5.5M Budget


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South Area Flow MonitoringContract # 2010-02

Two Teams (North Area / South Area)

Contract in Place 6 Months Earlier

More Difficult Area (low-lying, pump stations)


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Project 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Rain Gauge$500K $500K $500K $500K $500K

JMT JV$5M

ACS Stemmers $820K

Force Mains $4.8M

South Area FM $5.5M

SRRR Plans $2.2M

On-Call FM $1.1M


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SRRR Plan DevelopmentContract # 2012-01

On-Call Contract

SRRR Plans for 4 Sewersheds Started in March 2013

4 years with four 1-year renewals

$6M Contract Budget

9 Task Orders to Date

$2.2M Under Contract


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SRRR Plan DevelopmentContract # 2012-01

4 SRRR Consultants

4 Design Consultants

1 Modeling Consultant

Highest Ranked SRRRand Modeling

First Under ContractSRRR Plans Ahead of all others in

Completion


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Project 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Rain Gauge$500K $500K $500K $500K $500K

JMT JV$5M

ACS Stemmers $820K

Force Mains $4.8M

South Area FM $5.5M

SRRR Plans $2.2M

On-Call FM $1.1M


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On-Call Flow MonitoringContract # P-112 (2013)

On-Call Contract Two Year Initial Term (start 4/22/2014)

Three One-Year Renewals (thru 4/21/2019)

Flow Monitoring by Task Order

$5.7M Contract Budget Awaiting Approval of First Task Order

20 meters, 18 months

$1.1M

Two Consultants (RJN / ADS)

Need to Out-Perform


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Key Reasons for Success

Superior Quality Work

Sound Advice / Consultation

Established Working Relationship

On-Time / Early Deliverables

On or Under Budget

Responsiveness

Documents

Marketplace: The Wastewater Market