NYC DEP Launches Program To Improve Services, Lower Costs for Customers

The New York City Department of Environmental Protection (DEP) launched a new program to improve its water utility services. The program, Operational Excellence (OpX) will enhance services, result in environmental benefits and reduce costs for the city. Veolia Water has been hired as a consultant to develop recommendations to streamline workflows, boost productivity, identify opportunities for efficiency gains and keep future water rate increases low.

As the nation's largest municipal water and wastewater utility, DEP currently spends roughly $1.2 billion annually on operations and maintenance. It aims to achieve $100 to $200 million in annual savings through the program. The incentive-based agreement with Veolia Water delivers DEP access to a worldwide network of water and wastewater services and technologies while ensuring continued government control, decision-making authority and ownership.

“The Operational Excellence program pairs us with a firm that brings a comprehensive portfolio of best management practices, a track record of boosting productivity while reducing expenses across the globe, and all while protecting existing workforces,” said DEP commissioner Carter Strickland. “Bold steps like these are the responsible thing to do to lessen the burden on our 835,000 customers who have been absorbing several years of significant water rate increases.”

Veolia Water’s selection followed a Request for Proposals issued in April by the New York City Water Board and a competitive review process that focused on a contractor's ability to assess all aspects of agency operations for potential improvements, including labor productivity and processes, inventory management, chemical purchasing and usage, sludge digestion and disposal, and energy efficiency and management.

The OpX program is divided into two phases. First, DEP and Veolia will conduct an initial evaluation phase that will result in a final report in 2012 of recommendations on how DEP can improve productivity and reduce costs. Based on that report, DEP has the ability to accept or reject any of the proposed operational changes and cost-saving measures. Improvements that DEP chooses will be implemented over a four-year period.

Source: PR Newswire