Pipe Competition Reveals Cost Savings

Pipe Competition Savings: Ohio

Pipe competition can save huge dollars for necessary infrastructure repairs.

Open pipe competition vs. closed competition: The primary objective of this study was to provide a comparison of water distribution and transmission (pressurized) pipeline installation and costs between two Ohio communities.

Ohio Resources:

• Infographic: Ohio Study Reveals Competition Cost Savings
  Estimated Pipeline Capital Costs by Pipeline Diameter, for Franklin County, OH (Columbus), Delaware County, and the City of Dayton.

• OH Competition Virtual Monopoly Infographic_FINAL
  How does Ohio’s incumbent water pipe material maintain control of supply in certain markets?
• BCC Report Pipe Costs OHIO Open v. Closed Competition
  Pipe competition: The primary objective of this study was to provide a comparison of water distribution and transmission (pressurized) pipeline installation and costs between two Ohio communities.
• Ohio Proposed Bill Language:
  Open pipe competition legislative bill language sought in Ohio.

Open Competition Can Save Ohio Nearly $1 Million/10 Miles

• OPEN COMPETITION Delaware County, OH, allows all materials that meet specifications to bid on a pipe project. It enjoys lower pipe capital costs on average. However, Franklin County mandates only one material for water supply pipe, granting a virtual monopoly costing taxpayers an average of $97,680 per mile in additional pipe capital cost.
• Savings on average, for pipe capital costs in OPEN COMPETITION Delaware County, OH were 32% to 35% compared to Franklin County, OH with a virtual pipe monopoly for one material, ductile iron.
• Even considering total pipeline construction costs, OPEN COMPETITION Delaware County, OH saved 13.6%, on average, compared to Franklin County, OH on pipe projects.
• Eight to 12” pipe in Franklin County, OH, which maintains a virtual monopoly, cost on average $51.83 per foot, but in OPEN COMPETITION Delaware County, OH it cost $33.33 per foot on average, a difference of $18.50 per foot, saving $97,680 per mile in pipe capital costs alone.
• For every ten miles of pipeline, OPEN PIPE COMPETITION could save nearly $1 million in pipe capital costs alone.

Pipe Competition Savings: North Carolina

North Carolina Resources:

• Full Infographic: North Carolina Study Reveals Competition Cost Savings

• OPEN COMPETITION Charlotte, NC allows all materials that meet specifications to be considered for a project. It enjoys lower pipe capital costs on
  average. However, Raleigh, NC, mandates only one material for 8-12” water supply pipe, granting a virtual monopoly costing taxpayers an average of $155,902 per mile in additional pipe capital cost alone.
• Savings on average, for 8-12” pipe capital costs in OPEN COMPETITION Charlotte, NC were more than 49% compared to Raleigh, NC with a virtual pipe monopoly for one material, ductile iron.
• Eight to 12” pipe in Raleigh, NC, which maintains a virtual monopoly, cost on average $57.73 per foot, but in OPEN COMPETITION Charlotte, NC it cost $28.21 per foot on average, a difference of $29.53 per foot, saving $155,902 per mile in pipe capital costs alone.
• For every ten miles of pipeline, OPEN PIPE COMPETITION could save $1.55 million in pipe capital costs alone.
• BCC Report Pipe Costs North Carolina Open v. Closed Competition