Tampa Bay Seawater Desalination Facility a First in
Alternative Project Delivery Methodology

It’s been ten years since Tampa Bay Water published a Request for Proposal, inviting companies to propose their interest in a DBOOT (design-build-own-operate-transfer) alternative project for a new saltwater desalination facility in the region. The first of its kind in the U.S. water services industry, the project concept depended entirely on the private sector to develop a facility that would produce desalinated potable water, which would then be purchased by Tampa Bay Water, the Southeast’s largest regional water authority and supplied to 2.5 million bay area residents.

The desalination plant recently enjoyed its ribbon-cutting ceremony, marking the end of a long journey for Tampa Bay Water but representing another example of R. W. Beck’s successful delivery of Insight with Impact—our Commitment—to a client in need.

Delivering Quality Solutions

Tampa Bay Water hired R. W. Beck in 2002 to negotiate the purchase of the project from the original developer. We secured a purchase agreement that allowed Tampa Bay Water (with an excellent credit rating) to finance the project at a lower cost of capital then advised Tampa Bay Water to approve payment draw requests under the developer’s general contractor that had designed and completed 35 percent of the construction of the project.

After the contractor finished the work, R. W. Beck oversaw the facility’s first Acceptance Test, which revealed some plant deficiencies. The contractor opted to declare bankruptcy rather than correct the deficiencies, leading to another request from Tampa Bay Water for our firm to solicit for a replacement contractor. The success of the project continued to be crucial to providing a drought-proof component to the region’s water supply.

Finding a contractor to correct the plant deficiencies in the midst of construction litigation and with a significant transfer of performance risks to the new contractor on an expedited schedule was a significant challenge. Yet R. W. Beck achieved all of Tampa Bay Water’s objectives and procured a highly qualified and able Design-Build-Operate (DBO) contractor to complete the job.

Meeting Community Needs

“In 32 years of building utility assets I have never experienced a single project that had to overcome as many obstacles,” says Neil Callahan, Vice President of the Firm’s Utility Service Practice. "Securing a new DBO contractor to take complete performance risk for such a high-profile and closely-watched project presented huge challenges as an Owner’s Procurement Advisor.”

The good news is that, with our assistance, the desalination facility—the largest in North America and the first large-scale seawater desalination plant in the United States—is now operational. Since March 2007, the facility has produced more than 5 billion gallons of drinking water for the Tampa Bay region.

“This plant will help the Tampa region resolve water supply shortages associated with droughts,” says Callahan. “It could serve as a model as other coastal regions examine their water portfolios and determine how to meet challenges associated with population increases and finite potable water supplies. The Firm came through on our Commitment of providing Insight with Impact. We not only provided the insight to help our client, Tampa Bay Water, take meaningful steps forward after some initial setbacks. That insight subsequently led to a significant and positive impact as the project achieved the kind of success that will serve Florida’s population now and in the future.”

For more information on this project and other R. W. Beck expertise, please contact:

Steve Gates
Senior Vice President
PH 508.935.1884
email