Outsourcing Key to Quick, Conscientious, and Cost-Effective MR Programs

Choosing the best outsourced partner to meet your specific needs requires some diligence.
Here are several criteria to consider.
Several public utility commissions in the
United States have approved programs
allowing local gas distribution companies to
recover the cost of replacing and repairing
pipeline infrastructure. Now the rush is
on to design and construct the resulting
main replacement (MR) programs. With
limited resources and an urgent need to
improve their pipeline safety, a number of
local distribution companies (LDCs) are
outsourcing some or all of their MR needs.
Selecting the right team to perform outsourced services can lead to lower costs, accelerated ramp-up
schedules, and experts to manage program scale. This article provides tips on selecting the appropriate
outsourced firm and the benefits, through customer case studies, of identifying MR experts.
A NEED FOR SPEED
Design and execution of accelerated main replacement programs often require rapid deployment of
resources. But few utilities have experienced personnel available to execute rapid deployment. The
process of hiring and training staff can take months or even years. Utilities located in less populated
regions of the country may also find it difficult to compete for a limited number of qualified job applicants.
Outsourcing your MR program can free up internal resources, eliminate the need to hire and train
personnel, and keep payroll and benefits expenses in check.
Beyond the human resources delays, outsourcing can greatly reduce the design and development time
of a main replacement program. Engineering and design contractors can commit to a short ramp-up time
and can adjust to varying workload levels. With an outsourced team dedicated to main replacement,
some local distribution companies also benefit from “on-the-shelf” main replacement designs for the
future.
entrustsol.com
Outsourcing Key to Quick, Conscientious,
and Cost-Effective MR Programs
By Les Goodman, Adam Biggam, Michael Garvey,
ENTRUST Solutions Group
As published in
PIPELINE & GAS JOURNAL, Dec. 2014
Outsourcing Key to Quick,
Conscientious, and Cost-Effective
MR Programs
It is not uncommon for consulting teams to design for MR projects for the subsequent year that are then
put on the shelf. Permits are obtained when the projects are ready for construction. Occasionally “on-theshelf” designs can offer distribution companies the flexibility to allocate unused capital budget dollars to
additional miles of main replacement, when conditions are right.
VALUE PLANNING
There are other benefits to long-term planning
which can easily translate into cost reductions.
Coordinating main replacement projects with public
works projects promotes better relations with public
officials and can help reduce resurfacing costs,
for example, by sharing those costs with public
improvement projects. Municipalities appreciate
advance notice regarding MR programs, and
are often willing to work with the distribution
companies to minimize project disruption and
enhance coordination. Choosing an outsourced
partner experienced in preparing for, and meeting
with, public works officials to discuss coordination,
permitting, and restoration requirements can be
beneficial. At ENTRUST Solutions Group, we often
see MR programs ranging from 10 to 20 years and annual planned replacement footage between 50
and 100 miles. Coordinating the details associated with MR programs on this scale is more efficient and
streamlined in the hands of outsourced teams who are completely focused on such details.
SELECTING THE OUTSOURCED PARTNER THAT’S RIGHT FOR YOU
There are in excess of 100,000 miles of cast iron, bare steel, and older vintage plastic pipe in service,
much of it in need of replacement. And there are countless local gas distribution companies–all with
varying levels of MR needs, budgets, scope, and scale–ultimately responsible for the replacement of
these mains and services. Choosing the best outsourced partner to meet your specific needs requires
some diligence. Here are several criteria to consider.
1. Range of services. Depending on your internal resources, you may need some, or all, of your MR
program outsourced. So consider what tasks you will need outsourced. Choose a firm that can perform
the following: estimating, drafting services, execution and coordination planning, GIS implementation,
mapping services, material list development, permitting services, replacement plan, and system design/
modeling.
EIGHT KEY CONSIDERATIONS WHEN
SELECTING YOUR MR PROGRAM
OUTSOURCED PARTNER
1. Range of services
2. Level of participation
3. Geographic reach
4. Breadth of experience
5. Years of experience
6. Access to new technology
7. Remote capabilities
8. Remote access
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Outsourcing Key to Quick,
Conscientious, and Cost-Effective
MR Programs
2. Level of participation. While several firms can perform some aspects of MR services, fewer firms are
able to provide all the key elements of an accelerated MR program. If your company desires to outsource
the program development of your MR program, be sure your outsourced team is adept at this. Beyond
just program development, a few firms will provide design, inspection, construction field support, and field
documentation. At ENTRUST Solutions Group, we are finding that more of our customers are moving
toward one inspector for each field crew. Your outsourced partner should have the resources to meet this
need.
3. Geographic reach. It may not be necessary for your outsourced partner to be located in your
backyard. In fact, firms with a national service area are more likely to have faced similar local jurisdictional
requirements or geographical challenges as those in your area. Selecting a firm with a national scope
also ensures that personnel can be quickly assigned to your MR program regardless of location.
4. Breadth of experience. Firms with an extensive resume of MR programs are more likely to
recommend industry leading best practices, not just during the design and permitting process but from
program development through to field inspections and documentation as well.
5. Years of experience. Again, the more experience the outsourced firm has in designing and managing
MR programs, the more value you will derive from that team’s expertise. Every firm has to have their
“first” main replacement program client. But you don’t want that client to be you.
6. Access to new technology. Utilities have a range of technology at their fingertips. But not all
distribution companies use the same platforms, systems, or procedures. Be sure to ask your outsourced
partner upfront what systems their team is trained and experienced in using. You may want to ask
specifically about work & asset management systems, real time as-built capabilities, GIS design, GPS
documentation, and bar coding, for example. Select a firm whose skills and systems are compatible with
your own. At ENTRUST Solutions Group, we have worked in so many different platforms and systems,
that we established an in-house training program to easily bring team members up-to-speed with a
client’s system.
7. Remote Capabilities. It may seem counter-intuitive, but more and more clients are opting to have
their main replacement programs designed remotely. This requires a more adept outsourced team with
enhanced technological capabilities. In fact, we have found that some of our most cost-effective main
replacement programs are those designed remotely. In some cases, we will deploy personnel to perform
field notes for short periods of time. But most all of the design and engineering work is done at one of our
regional offices.
entrustsol.com
Outsourcing Key to Quick,
Conscientious, and Cost-Effective
MR Programs
8. Remote Access. Utilizing new technology
enables the outsourced firm to access client,
municipal, and other utility infrastructure information
remotely and to reduce the need for on-site records
retrieval. Water, sewer, telecom, and electric details
and location information most often can be obtained
remotely as well. LDC service record cards, GIS,
maintenance records, and work management
systems may also be accessible remotely, which can
lead to reduced design costs and travel expenses.
In order to successfully integrate an outsourced firm,
you should take steps early to determine internal
security requirements, protocols, etc. so that this
capability does not delay your project ramp-up.
Whether you are looking to reduce costs, accelerate
ramp-up, avoid hiring and training, or create a
more streamlined process, outsourcing your MR program is a viable solution to these and many other
challenges. Taking care to thoroughly review and select your outsourced partner will help you secure a
team of MR experts for your specific needs now and into the future.
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KEY ELEMENTS OF A SUCCESSFUL
MR PROGRAM
1. Identify Conditions & Threats
2. Ranking & Prioritization
3. Program Timeline
4. Jurisdictional Collaboration
5. Design & Construction Standards
6. Work Management System
7. Program Resources
8. Program Communication
9. Organization Structure &
Governance
RESOURCES
Authors:
Les Goodman is vice president of ENTRUST Solutions Group, based in Glen Burnie, MD. He has more
than 30 years of experience in natural gas engineering, operations, maintenance, and consulting. He can
be reached at 443.577.3871 or lgoodman@entrustsol.com
Adam Biggam is vice president, distribution of ENTRUST Solutions Group, based in Warrenville, IL.
He has more than 10 years of experience, specifically with natural gas accelerated main replacement
programs. He can be reached at 630.353.4071 or abiggam@entrustsol.com
Michael Garvey is vice president, business development at ENTRUST Solutions Group, based in
Warrenville, IL. He has more than 20 years of experience and a background in high pressure gas
transmission pipeline operations. He can be reached at 630.353.4012 or mgarvey@entrustsol.com