Use of design-build-operate contracts for infrastructure projects

The traditional procurement strategy for most infrastructure projects in the United States historically has been design-bid-build. The Seattle Public Utilities department has selected a design-build-operate procurement strategy for the construction and operation of two major water filtration facilities. This alternative strategy was selected because the city, lacked experience in plant design, construction, and operation and desired to minimize its life-cycle costs for the projects. This paper describes the procedures used by the city, and the results obtained. Construction of the first plant has been completed, and it is now in operation. The second plant is currently under construction. The city, estimates that it saved about 40% in life-cycle costs for the first plant and about 30% on the second one.