Problem

The City of Tacoma, Washington, wanted to refinance $67 million worth of revenue bonds within a month, to capture low interest rates. The City requested proposals from qualified firms to prepare a Consulting Engineers report to accompany the bond Official Statement. These reports are exhaustive assessments of technical and financial feasibility, and one particular engineering firm had much more documented experience preparing them than all its competitors nationwide. CH2M HILL was not that firm, yet it was currently working with Tacoma and did not want the other firm to slip in based on reputation alone. They faced the two problems that plague all consultants: how to get selected and how to complete the work.

Solution

CH2M HILL asked Rusty LaFerney to join the team. Rusty has prepared Consulting Engineers reports, presented them to rating agencies, and worked on revenue bond financings since 1981. Knowing that time was the main client concern, Rusty suggested that the team not restate its qualifications at the proposal interview, but rather present a detailed outline of the report with major sections partially drafted and a schedule for all sections. The strategy was to nudge the interview into an actual project work session as soon as it seemed like the City was reasonably satisfied with our qualifications.

Results

The strategy worked. Our team was selected and had already made major progress toward completing the work. In two weeks of long days filled with interviews, analysis, and writing the team had a draft report, which went through excruciatingly detailed reviews and revisions with the City, underwriters, and financial advisors. The bonds were priced within the month timeframe, and the City reduced its interest costs by about $500,000 per year.

Lessons Learned

Like Ichiro, you do not have to be the biggest to be the best. It is more important to think creatively and critically and to understand what creates real value for the client. Then deliver that.