Texarkana Saves $2.5M By Finding Water Meter Contract Flaw With Help from TXShare Vendor

An independent review of the Texas City’s water meter contract uncovered a costly calculation error, saving the City millions without changing the project scope.

The City of Texarkana, Texas, required the third-party review of a broad-scale automated metering infrastructure (AMI) conversion contract that would allow for automatic water meter readings and better water consumption data. 

They hired Holistic Utility Solutions, a TXShare co-op vendor that provides energy and water solutions and consulting services, to review the contract. During their analysis, they discovered a critical calculation error that led to the City saving a whopping $2.5 million to put to use on other projects. 

Challenge: Navigating Complex Contracts Without In-House Expertise

The City lacked the in-house team to evaluate the technical and contractual details of the AMI project. Understanding the technology was one hurdle; understanding how that technology tied into the contract’s revenue projections was another. City officials knew that negotiating a fair deal without this knowledge would be difficult, and the possibility of overlooking costly errors would be high.

Solution: Expert Review Uncovers Costly Error

Understanding their limitations, the City hired Holistic Utility Solutions to pore over the contract. That included analyzing meter test results, sampling methodology, revenue calculations, and a full pricing analysis.

During the review, Holistic Utility Solutions identified a major calculation error. The original contract assumed the City could collect 30% more in water revenue than was actually possible. 

“AMI conversions are complex projects with long-term impact to both finance and operations. Understanding the nuances of how water and sewer revenue are impacted and project costs are developed is critical to negotiating a contract that is beneficial to the City and residents,” said Ira Nicodemus, President of Holistic Utility Solutions. “Since most utilities have never done a system-wide conversion, engaging a third-party expert pays for itself many times over.”

Result: $2.5 Million Saved Without Changing Project Scope

Texas law states that savings must offset costs when a project is implemented through an Energy Saving Performance Contract (ESPC). By catching the calculation error, Holistic Utility Solutions was able to negotiate $2.5 million in savings while keeping the deliverables completely intact.

The adjustment ensured that the Texarkana utilities would receive their expected return on investment, and ultimately meant taxpayer money would go further.

“We were surprised at how much we were able to save on the project without changing the scope. Without the extra support with the contract review, we might have overlooked the error,” said Gary Smith, PE at Texarkana Water Utilities. It was rewarding to save a significant amount, but also to feel confident we were getting a fair deal.”

Access This TXShare-Awarded Contract Now on Civic Marketplace

As a TXShare contract awardee, Holistic Utility Solutions’ consulting services are available now through Civic Marketplace. The TXShare purchasing cooperative carefully selects vendors with a proven record of exceptional service. With the co-op, your agency can access top-tier government contracts time-consuming RFPs. And it’s 100% compliant.

‍If you’re an agency in need of a third-party project review, check out the AMI consulting contracts on Civic Marketplace. Access the best available pre-awarded contracts while saving time and money.