Using Vendor Benchmark Data to Determine a Cost-Effective Leak Detection Program

By Paul Gagliardo

The typical municipal procurement process utilizes the age old “low bid” process. A detailed specification is created, and vendors provide a sealed bid. The low bid wins and the agency hopes it gets what it really wants. This works with static products such as pipe or valves. For more complicated products such as membrane treatment systems it is more appropriate to use a life cycle cost process. The amortized capital cost, cost of operation, cost of replacement membranes and system production recovery can all be considered through a model to determine the lowest cost of production.

It can be argued that selecting a leak detection program is even more complicated, and many more parameters must be analyzed to ensure the most cost-effective approach is used. The key performance metrics that can be used to determine the best fit are cost per leak found and marginal cost of new supply (recovered lost water).