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11 also be reasonably assumed that these factors contributed to good APM system performance and thus contributed to the best interests of the public. 3.2.2Option 2: Competitive Procurement of O&M Services Some recent examples of procuring ongoing O&M services for APM systems have departed from the historic precedent of sole sourcing the services. All of these departures have a common factor that is key to the procurement philosophy, and that common factor is competition. This competition, in turn, helps ensure that the owner realizes the lowest price for Photo: Lea+Elliott, Inc. the O&M services. In all cases, this quest for low cost appears to be the sole reason for the competitive procurement, and as Elevated Maintenance Facility at George Bush previously stated, no examples are known where there was a Intercontinental/Houston Airport problem with the technical performance of the original O&M provider. ment. The reader is particularly encouraged to read Chapter 11, There are many specific contractual approaches that are which includes an overview of different O&M procurement available to effect a competitive procurement of O&M services. options, including three of the four methods that are discussed These procurement types differ by what is desired by the owner in this section. Chapter 11 also addresses the procurement of and/or what is allowed by the specific state statutes where future O&M periods and offers examples of competing APM the airport and APM reside. These procurement types are O&M services. referred to by a variety of colloquial and contractual names There are differences between and similarities in the initial such as "best value," "request for competitive sealed proposals," procurement of O&M services at the time of APM system and "competitive two-step," whereby technical qualifications implementation and the future/continuing procurement of and price are solicited separately. It is not the intent of this O&M services for a seasoned APM system. The focus of this report to examine the particulars of these procurement types chapter is the procurement of ongoing O&M services. The because the airport's contract administrators and legal staff will following four procurement methods are thus presented with already be well versed in the available options if a competitive the prerequisite assumption that the subject APM system is procurement is desired. an existing system with O&M services that have reached a In terms of these competitive procurements being referred point in their contractual timeline that allows the owner an to as "recent," it should be considered that the APM industry opportunity to consider different procurement options. is more than 40 years old, spanning from the late 1960s to the present. Although the APM industry is young in comparison to other industries such as railroads or even the airline industry, 3.2.1Option 1: Sole-Source Procurement it should also be considered that all competitive procurements of O&M Services within the 40+ year-old APM industry have occurred within Procuring ongoing O&M services via a sole-source contract the last 6 years. with the original supplier of the APM has historically been the procurement method used most often. One reason for 3.2.3Option 3: In-Sourcing O&M Services this is that the APM industry is highly specialized, with each to Airport Staff supplier's system being proprietary in nature. Thus, there has been no historical development of an O&M contractor pool Another method to procure ongoing O&M services for an or those companies capable and willing to provide O&M APM system is to in-source the services to airport staff. This services for an APM system other than their own. Also, there could involve the staff of an existing airport department, or have been no known problems with the original supplier if warranted, could involve the creation of a new department continuing as the long-term O&M provider. It is reasonable with new staff dedicated to the O&M of the APM. Although to assume that the development of a long-term familiarity having in-house staff provide O&M services for a transit with the APM's operation and maintenance, as well as a long- system is not rare in urban settings (including some urban term proven relationship between the owner and the O&M APMs), it is fairly uncommon for airport APM systems. The provider, contributed to the best interests of the owner. It can few examples are unique in how they came to be. For example,