Efficient Utilities

Questions and Responses

Q. What is EfficientUtilities?

R. EfficientUtilities is a private information exchange website. In short, it provides

an additional communication tool for buyers and providers to strengthen and enhance their relationships. Some have described the site as a virtual exhibit hall that facilitates communication between buyers and sellers. It further acts as a collaborative management tool that streamlines the administrative functions of procurement and facilitates the exchange of information.

Q. How does the site work?

R. The site is a neutral tool allowing buyers and sellers to maximize process

efficiencies while doing business via established practices and relationships. The site allows buyers and sellers to automatically route utility and other buyer requests through traditional sales channels, including utilities’ preferred distributors and manufacturers’ representatives. An on-line demonstration of the site is available at your convenience at EfficientUtilities.com.

Through utilizing the site, utilities can improve workflow and reduce administrative costs associated with procurement as well as integrate the software with financial and inventory management systems to streamline the entire purchasing process.

Within the site, a registered distributor or supplier can differentiate products and services as they choose. The primary advantage is that you enter the information once, (except for updates), and do not have to send it out repeatedly to requesting utilities. Utilities can access the information on site.

Q. Who sees the information communicated via EfficientUtilities?

R. The site does not collect or distribute private utility or company information, such as what utilities have bought from whom or how much they paid for it, what providers have sold, who they’ve sold it to, or the price of goods or services they sold.

Neither AWWA, nor EfficientUtilities, will monitor or participate in any transactions. EfficientUtilities will provide the online communication channel for transactions. However, the content and decisions concerning transactions are confidential between the utility and providers.

Does the site support or allow reverse, auction, aggregation, or bulletin board-type activities?

No.

Q. Why is AWWA involved in the site?

R. AWWA invested in the development of the site with approval from AWWA’s volunteer leadership as part of its mission to be an effective instrument of change by advancing technology relative to the public drinking water profession’s role in stewardship of water resources.

Other utility e-procurement providers have asked for AWWA sponsorship but did not provide AWWA the opportunity to control the design and content of the site. AWWA’s leadership agreed to make this investment because it afforded AWWA, through its volunteer leadership and advisory boards, an opportunity to create a site that would best reflect the needs of both our utility and provider members.

AWWA firmly believes that water and wastewater utilities will be using electronic procurement methods on a regular basis to streamline their purchasing processes, thereby reducing costs. This is based on feedback from utility managers that are under increasing pressures from governing boards to become more efficient and to cut costs wherever possible.

Q. What was the process and who was involved in the development of the site?

R. AWWA worked with EfficientUtilities to design and create the site at the direction of AWWA’s volunteer leadership and with input from the Provider and Utility Advisory Boards. The Advisory Boards reviewed the site and provided input to the design and content throughout the development process. And, while some disagreed philosophically with the site, both Advisory Groups agreed that the site could be launched once additional technical changes had been made according to requests they made at an August 10 meeting. These Boards, along with the Board of Directors and Section leadership, previewed the site the week prior to its official launch September 17. In addition to these meetings, AWWA communicated information about the site at volunteer meetings and publicized the site in its publications throughout the year.

Q. What role did the Sections play in the development of the site?

R. Section representatives are part of the AWWA Board of Directors and many had representation on the Provider and Utility Advisory Boards. The AWWA Board of Directors authorized the Executive Committee to develop a business to business website on behalf of AWWA and its members. The Executive Committee proceeded to negotiate a contract with ENI to develop EfficientUtilities. EfficientUtilities developed the site under the direction of the Executive Committee and with the advice and council of a Provider Advisory Board and Utility Advisory Boards. Section leadership had a general awareness of the site and was given a preview of the site a week prior to its official launch.

Q. How will AWWA monitor any changes to the site?

R. Any suggested changes to the site must be submitted and approved in writing by the AWWA Association Services Incorporated (AWWAASI) Board of Directors. AWWAASI was created to implement the terms of the EfficientUtilities contract. The AWWAASI Board includes the AWWA Executive Director, the two immediate past presidents of AWWA, an AWWA provider member at large, and a non-AWWA member at large. An EfficientUtilities’ Board of Directors, comprised of non-paying volunteer positions, is being established to oversee the site. This Board will include two appointees by AWWAASI; two appointed by ENI, and one additional appointee that both parties select.

Q. What was AWWA’s actual investment in the site?

R. With the approval of the AWWA volunteer Executive Committee, AWWAASI

entered into an agreement with EfficientUtilities, to provide $500,000 in funding and $100,000 of in-kind support, to create EfficientUtilities.com. AWWAASI spent an additional $15,000 in legal fees to negotiate the contract.

Q. How much money will AWWA make from the site?

R. AWWA does not view this site as a major revenue producer for the Association and plans to reinvest any revenues from the site back into services for its membership. Manufacturers and distributors who are AWWA members will pay a subscription fee starting at $360 per year to market through the site. Non-members will pay $475. Utilities can access portions of the software at no charge or pay a licensing fee to acccess the full functionality of the Utility Procurement Exchange. In addition, utilities also can choose to pay for a customized solution that can integrate their back-office software with the site.

Q. What does AWWA recommend to members who are either considering involvement with the site or withdrawal of their support because of AWWA’s involvement with the site?

R. AWWA would ask that members first visit the site, view the overview presentation and decide for themselves the site’s capabilities. AWWA members will ultimately determine the success of the site. That success will be determined by the value that it adds to the water profession’s current way of doing business.

Q. Where can I learn more about EfficientUtilities.com?

R. You can contact Efficient Utilities through the website, www.efficientutilities.com, or by calling 1-888-764-4441.

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