Alliance Reliance

By Brian K. Schimmoller, Managing Editor

As asset owners continuously search for new ways in which to reduce costs while maintaining plant reliability, one option being given serious consideration around the country is the outsourcing of maintenance and outage services to third parties. Third parties have long played a large role in helping power plant owners cost-effectively manage and perform outage work, but many of these companies are now expanding their penetration into more frequent maintenance activities, including routine and unscheduled maintenance.

Outsourcing, of course, has acquired a negative connotation in many circles in recent years. The preferred terminology in the power sector, therefore, appears to be "alliance contracts" or "maintenance contracts." Whatever they're called, such agreements represent a growing trend in the industry, and a growing revenue stream for OEMs and service providers. To explore the structure, makeup and rationale behind these contracts, Power Engineering recently sat down with executives from TVA and Day & Zimmermann NPS (DZNPS). TVA has had an alliance partnership in place since 1995 with DZNPS and recently extended the contract for another three years. Under the contract, DZNPS performs full-service plant maintenance and modifications at TVA's fossil plants in the western part of the Tennessee Valley, which spans both Tennessee and Kentucky. Participating in the interview were Robert Summers, vice president, fossil projects, with TVA; Michael McMahon, president of Day & Zimmermann NPS; and Greg Kern, program manager with Day & Zimmermann NPS.