The Public Works Distribution & Collection Division has a program to pipe burst certain existing water mains in need of replacement. It is necessary to purchase 3,800 feet of 8-inch diameter fusible PVC water main pipe for this program.

1.  Approve the pipe purchase.
2.  Do not approve the pipe purchase and require the Public Works Department to open cut the water main scheduled for replacement.

The cost for this pipe is $55,100.00, funded from the annual water replacement project approved in the Capital Improvement Plan (CIP). The pipe is from Underground Solutions Inc. that has the patent on this fusible PVC pipe and the fusion technology utilized to join the pipe together. The City Of Billings has a license agreement to use this product. As such, it was necessary to obtain a price proposal for the pipe rather than bidding out the material. The cost for pipe bursting is about one-third the cost for conventional construction.

The city’s purchasing policy states that in order to purchase materials for this dollar amount requires bidding for the materials. This pipe and the fusing technology is a patented process held by Underground Solutions, Inc. (USI) for fusing PVC pipe. This company is the only manufacturer of this product and fusion technology for PVC pipe. In the future we anticipate that the USI fusion patent will expire and other manufacturers and suppliers will be able to provide this product and we will be able to bid the materials.

Staff recommends that Council approve the purchase of the fusible PVC pipe from Underground Solutions Inc. for $55,100.00.