Price Elasticity of Demand for Water Supply

The State of Utah Division of Purchasing and Division of Water Resources issued a Request for Proposal (RFP) seeking a comprehensive price elasticity of demand study for water supply, specifically targeting Kane and Washington counties. The procurement aims to analyze water demand changes in response to water rate and impact fee increases, directly supporting the Lake Powell Pipeline Project. The study requires a detailed examination of economic literature to provide precise estimates of water demand elasticity, with key deliverables including comprehensive research findings and economic modeling. The solicitation was open from September 27, 2018, to October 24, 2018, with a planned contract duration of approximately six months. The contract will ultimately be awarded to the most responsive and responsible offeror, with evaluation criteria focused on the best value and highest total score submitted. The study is funded through the State's Water Infrastructure Restricted Account (WIRA), established by the Utah State Legislature in 2015, and aims to support large water development initiatives including potential federal water infrastructure repair and replacement.

The RFP does not explicitly mention specific set-aside designations or restrictions on responding organizations. The contract was awarded to The Balmoral Group, which was selected as the most qualified vendor for the project. While a specific line-item pricing structure was not detailed, the project is part of a broader state-level water infrastructure initiative. The contract is structured for a five-year term or until project completion, with an anticipated project duration of approximately six months. Funding for the study comes from the Water Infrastructure Restricted Account, indicating a state-level commitment to understanding water demand dynamics. No specific budget range was disclosed in the available documentation, but the project is part of a significant state-level water infrastructure planning effort. The study's findings are expected to provide critical insights for future water resource management and infrastructure development in Utah.