Subject
title
Award and authorize the City Manager to execute a contract with Ferguson Enterprises, LLC d/b/a Ferguson Waterworks, of Tysons, Virginia, for Request for Proposal (RFP) 30-25 - Advanced Metering Infrastructure Project.
end
Department
PW - Engineering
Recommendation
Award and authorize the City Manager to execute a contract (Attachment 1) with Ferguson Enterprises, LLC d/b/a Ferguson Waterworks, for a negotiated value of $5,908,721.85
for RFP 30-25 - Advanced Metering Infrastructure Project: hardware equipment, software, and services (both construction and professional).
Discussion
This contract will implement the City’s comprehensive Advanced Metering Infrastructure (AMI) project-Water Meter Replacement and AMI Implementation, UB21(Attachment 2). Originally initiated in the FY 2020 CIP to address commercial upgrades, this project provides a service area-wide plan to replace the city’s aging system, including AMI implementation and new meters The scope of work under this contract encompasses all labor, materials, equipment, services, construction, installation, permits, and licensing required to execute the upgrade.
Specifically, the contract includes the acquisition of high-accuracy solid-state Master Meter ultrasonic water meters, an Advanced Metering Infrastructure (AMI) fixed network system, and a robust Meter Data Management System (MDMS). It provides both professional and construction services necessary to establish a fully functioning advanced metering network across the City's entire utility service footprint, which serves approximately 12,000 single-family, 100 multi-family, and 750 non-residential accounts.
The evaluation process for RFP 30-25 was conducted by a cross-departmental staff panel, including representatives from Information Technology (IT), Finance, DPW Operations and Maintenance (OMD), and DPW Engineering. The comprehensive evaluation included rigorous proposal reviews, vendor software demonstrations, multiple rounds of technical clarifications, and formal negotiations. Contract materials, scheduling, and project guidelines are governed by the RFP, subsequent addendums, the vendor's proposal, and mutually agreed-upon Clarifications and Negotiation Letters compiled throughout this process.
Once fully deployed, this project directly advances the City's guiding principle of Stewardship of the Environment and Infrastructure and fulfills directives from the 2019 Water Meter and Backflow Prevention Report. It will:
• Replace aging infrastructure with advanced, highly accurate solid-state ultrasonic technology.
• Protect existing infrastructure by seamlessly integrating approximately 4,500 recently installed modern meters into the new system, safeguarding prior capital investments.
• Support water conservation efforts, enable proactive customer-side leak detection, and optimize cost-of-service utility metrics.
• Enhance systemic utility revenue by eliminating manual read errors.
Customer Engagement Portal (CEP) Note: This specific award does not include the permanent CEP module. Staff is actively investigating alternative options that will better integrate directly with the City's current utility billing system, allowing residents to view historical usage data and pay bills seamlessly in a single digital storefront. None of the responsive and qualified proposals included this functionality.
Mayor and Council History
This is the first time this contract award has been brought before the Mayor & Council.
Public Notification and Engagement
Public notification and engagement are integral to the rollout of the Advanced Metering Infrastructure project, ensuring clear, proactive, and transparent communication across the service area. While these initiatives have not yet begun, the following proactive communication framework is planned:
• Consultant Engagement Support: The City retained Hazen and Sawyer (Hazen) under Contract RFP #21-22 to design a comprehensive Stakeholder Engagement Plan and carry out a multi-phase public awareness campaign. Hazen’s scope includes drafting community-facing materials, managing a centralized communication hub, and producing a 2- to 2.5-minute program explainer video for deployment across local communication channels, including the Rockville 11 YouTube station.
• Dedicated Project Website: As part of Phase 1 of the customer engagement program, the City has established a dedicated project landing page on the City of Rockville website to serve as a public resource for high-level program details, status updates, and FAQs.
• Community Outreach and Meetings: Public transparency will be maintained through scheduled community meetings to review vendor selection, outline deployment benefits, and introduce new customer portal features and management tools. Content will also be heavily promoted via the Rockville Reports and localized social media campaigns.
• Direct Notifications and Support: To drive portal adoption and notify users of local field schedules, informational bill inserts will be distributed. Furthermore, the contractor will handle direct on-site customer contact through door hangers and face-to-face notifications well ahead of any physical meter installations. A dedicated program call center will also be established to field direct customer inquiries.
Procurement
In accordance with Chapter 17 of the City’s Procurement Ordinance, the Department of Procurement prepared and publicly advertised Request for Proposals (RFP) #30-25 on July 31, 2025.
To maximize competitive positioning and secure an experienced contractor, the solicitation was posted publicly on the City's procurement platform to procure necessary hardware equipment, software, and both construction and professional services for a comprehensive, turnkey Advanced Metering Infrastructure (AMI) project. Additionally, notice of the solicitation was electronically provided to 129 prospective respondents via the State of Maryland’s electronic procurement system, eMaryland Marketplace Advantage (eMMA) system. Of the 129 prospective respondents, using the systems reporting capabilities, 11 were Disadvantaged Business Enterprises (DBE), 12 were Minority Business Enterprises (MBE), and 2 were Veteran Small Business Enterprises (VSBE).
To align technical expectations, review infrastructural complexities, and address vendor inquiries prior to submission, the city hosted an optional, virtual pre-proposal meeting for all prospective respondents on August 7, 2025. Vendors were permitted to submit formal technical and administrative questions until August 19, 2025.
On the formal closing date of October 15, 2025, the City received competitive proposals from nine respondents for the multi-component AMI project. Table 1 outlines the responsiveness, pricing, and final rankings of all participating respondents.
Table 1. Respondent MFD-V Status Proposal Price & Ranking
|
Respondent |
Responsiveness |
MFD-V Status |
Proposal Price |
Ranking - Proposal Interview |
|
Ferguson Waterworks |
Responsive |
Non-MFD-V |
$5,908,721.85 |
1 |
|
L/B Water |
Responsive |
Non-MFD-V |
$12,409,126.33 |
2 |
|
National Metering Services |
Responsive |
Non-MFD-V |
$12,804,910.55 |
3 |
|
Core & Main |
Responsive/Withdrawn |
Non-MFD-V |
Non-Applicable |
|
|
Vanguard Utility Service |
Unresponsive |
Non-MFD-V |
Non-Applicable |
|
|
Badger Meter |
Unresponsive |
Non-MFD-V |
Non-Applicable |
|
|
Compass Metering |
Unresponsive |
Non-MFD-V |
Non-Applicable |
|
|
Metron-Farnier, LLC |
Unresponsive |
Non-MFD-V |
Non-Applicable |
|
|
Zenner USA |
Unresponsive |
Non-MFD-V |
Non-Applicable |
|
The firm withdrawing their proposal cited legal concerns with waiving exceptions taken to terms and conditions contained within the solicitation document. Unresponsive proposals were either incomplete and unable to meet the solicitation’s minimum requirements or involved proposers having interests in multiple proposals making the proposal price no longer applicable to the process.
To evaluate these complex submissions, an evaluation committee was formed consisting of a cross-departmental staff panel. This committee included multi-disciplinary representatives from Information Technology (IT), Finance, DPW Operations Maintenance Division (OMD), and DPW Engineering. The comprehensive evaluation process involved rigorous written proposal reviews, vendor software demonstrations, multiple rounds of technical clarifications, and formal negotiations. The evaluation committee reviewed the remaining active, responsive written proposals based on the pre-established 100-point matrix provided in Table 2.
Table 2. Evaluation Criteria - Written Proposals
|
Evaluation Factor |
Possible Points |
|
Individuals and Qualifications of the Proposer |
20 |
|
Similar Projects and References of the Proposer |
10 |
|
Project Approach of the Proposer |
30 |
|
Compliance with Requirements |
15 |
|
Price Proposal/Fee Schedule |
25 |
Shortlisted firms including Ferguson, L/B and National Metering were invited for comprehensive software demonstrations, system architecture reviews, and technical interviews with the evaluation committee. All three firms were evaluated and ranked based on their ability to articulate relevant experience, demonstrate an overall understanding of the City's infrastructure needs, and communicate technical concepts for integration with current utility software systems.
Based on the proposal and demonstration content, and after thorough technical clarifications and negotiations, the evaluation committee determined that Ferguson Enterprises, LLC d/b/a Ferguson Waterworks should be recommended to receive the award. Ferguson Waterworks provides the best value and demonstrates the highest technical proficiency to execute the city-wide implementation. Their proposal delivers an optimal balance of advanced solid-state hardware, secure system functionality, robust project management capabilities, and a highly cost-effective deployment fee structure.
In accordance with Section 17-39 of the Rockville City Code, Awarding Authority, (a) All contracts involving more than two hundred fifty thousand dollars ($250,000.00) shall be awarded by the Mayor and Council.
To view contract documents, which are not deliberative, potentially proprietary and/or confidential, please click the link provided below:
Non-Proprietary And Confidential Contract Documents <https://rockvillemd.legistar.com/View.ashx?M=AO&ID=179971&GUID=39d0a455-b223-452d-af1f-c406dce16c37&N=UkZQIDMwLTI1IFNPTElDSVRBVElPTi5wZGY%3d>
Deliberative, potentially proprietary and/or confidential documents may be furnished via a non-public medium to council members if needed.
Fiscal Impact
Funding for this contract is provided within the Water Meter Replacement and AMI Implementation (UB21) project under the Water Fund Capital Improvement Program. The current available funding for this project is $6,658,109.
During the proposal evaluation process, staff determined it to be in the City's best interest to accelerate the deployment timeline. The proposal selected for award delivers a high-value, cost-effective solution that reduces the city-wide deployment schedule from the original 60 months down to a compressed 24-month timeline. This moves the full deployment completion target up from FY 2031 to FY 2029.
Compressing the schedule allows water users to receive the operational benefits of AMI significantly sooner-including real-time usage tracking, automated leak notifications, and enhanced digital conservation tools.
To accommodate this accelerated construction schedule and provide a standard project contingency, a future FY 2027 budget amendment request of $1,850,300 with no future funding needs will be submitted to the Mayor & Council. This amendment represents a strategic scheduling shift to front-load expenditures rather than an increase in total project scope. Overall, selecting this best-value proposal yields an estimated $2.2 million in total project life-cycle cost savings compared to the approved CIP book budget of $11.6 million. The City may need to issue a bond anticipation note (BAN) to provide the necessary resources to advance this project ahead of the next planned bond issuance (currently scheduled for FY 2028).
Next Steps
Upon Mayor & Council award, Procurement will work with Legal and Risk to prepare the final contract for execution, as well as obtain the required bonding and insurance documents from Ferguson Enterprises, LLC d/b/a Ferguson Waterworks.