The Department of Defense continues to encourage the U.S. military forces to sell their utility systems to private entities, and to enter into long-term contracts with the new owners to operate the systems. The military bases typically issue a Request for Proposals (RFP) to solicit bidders for the systems. Our clients, including cooperatives, municipal utilities, and investor-owned utilities, have engaged Booth & Associates, Inc. to prepare their proposals, including a Technical and Cost proposal.

Booth engineers travel into the field to validate the inventory of assets and to assess the condition of those assets. The validation process involves checking for proper asset classification, verification of age, and verification of existence. During the assessment part of their work, Booth engineers apply their experienced engineering judgement as to the condition of the particular assets versus typical distribution system assets.

The field results are then brought into the office where engineers determine the current day price of constructing each asset. Booth financial consultants then apply two valuation methodologies to value the systems: Replacement Cost New Less Depreciation (RCNLD) and Original Cost Less Depreciation (OCLD). The RCNLD approach determines the cost to construct the system today, and an adjustment for the age of the system. The OCLD is determined by applying the Handy-Whitman indices to estimate original cost.

 
Services

  • Verification of Inventory

  • Preparation of Technical Proposal
    1. Service Interruption Plan
    2. Quality Management Plan
    3. Capital Upgrades & Renewals and Replacements Plan
    4. Operational Transition Plan & Socioeconomic Plans
    5. Past Performance & Contract Documentation
  • Preparation of Cost Proposal
    1. Pricing Assumptions and Asset Valuation
    2. Operation and Maintenance Expense (50-yr projection)
    3. Initial Capital Upgrades
    4. Renewals and Replacements (50-yr projection)
    5. Cost / Risk Assessment
  • Economic Analysis of Proposal for Client
  • Presentations for Client Board

  • Negotiations with Government
    • Booth & Associates, Inc. is a member of the Utility Services Associates, Inc. family of companies.
    Contents Copyright © 2004 Booth & Associate, Inc.