Cost Study Service

The City of Chandler, Arizona is seeking a vendor to provide a comprehensive Cost of Service study for its water, wastewater, reclaimed water, and solid waste utilities. The agency needs to evaluate current utility rates and align revenue requirements with necessary operations, maintenance, debt, infrastructure, and reserves. This study aims to solve the challenge of long-term financial planning by building upon the city's ten-year financial forecasts to recommend a comprehensive five-year rate schedule for all utilities. The scope of work requires the creation of proposed revenue requirements by customer class, which must be compared to current revenue and validated against the city's rate model projections. The selected vendor must analyze the impact of peak demands on the cost of providing service and evaluate the reasonableness of base and variable rates for water, wastewater, and reclaimed water charges. Additionally, the project requires the creation of a data model to evaluate different scenarios, such as how rate and revenue projections would change if the largest industrial user increases or decreases water or wastewater flows by specific percentages. Bidders must be onshore organizations based in the United States to be eligible for this opportunity. The agency requires all performance of the work to be conducted offsite. The agency has not disclosed a specific budget and is currently looking for proposals to determine the cost. The agency will conduct a pre-bid meeting on July 7, 2026. Evaluation criteria will focus on the bidder's ability to deliver the comprehensive rate study, the peak demand analysis, and the interactive scenario data model. Bidders must submit proposals that address all outlined utility sectors and modeling requirements to be considered for selection.