The IGNITE Sustainable Communities Program is a well-designed series of risk mitigation processes that manages or eliminates many of the traditional risks associated with acquiring the use of an infrastructure asset. When designing the IGNITE PROGRAM, standards and risk mitigation procedures were developed for all stages.
As part of IGNITE’s mandate to serve its members, it commits to providing solutions with an “On Budget, On Time, No Risk” strategy. “On budget” is a strategy to keep within the budget of the infrastructure asset plan at all stages of its useful life. “On time” means any project activity is performed within the agreed upon time frame. “No risk” is a strategy of eliminating as much risk as possible for all stages of the infrastructure asset plan.
To ensure budget sustainability for the useful life of the member asset plan, IGNITE expects a vendor to satisfy the following strict criteria:
- Match its product warranty length to the term of the member plan
- Provide operational service, maintenance, and warranty service for the full duration of the member plan.
- Price its product to include this level of service and warranty support. These prices are expected to be significantly lower than what the member could negotiate by itself.
- Sign a vendor agreement to meet a minimum product performance standard on an ongoing basis for the duration of the member plan.
Vendors are continually reviewed by IGNITE for product performance and there may be situations where a product and a vendor could be removed from the PROGRAM due to under performance.
“I Do Not Trust You” Insurance
Despite all the proceeding, IGNITE designed one additional fail-safe feature, which it jokingly refers as the “I Do Not Trust You” insurance, to ensure the member plan would not be adversely affected by vendor non-compliance with its agreement with IGNITE. To ensure profitability would not be harmed or materially interrupted by vendor non-compliance with its Vendor Agreement, the insurance covers the steps to ensure all service levels are maintained. This insurance effectively moves the risk from within the IGNITE PROGRAM and sends it outside IGNITE to the insurance company. The insurance company, in turn, pursues the vendor outside of the IGNITE PROGRAM, so there is no interruption to the member plan. This is done behind the scenes and the member is not even aware of it occurring.
To learn more about these risk mitigation strategies, contact IGNITE.
“As soon as you open your mind to doing things differently, the doors of opportunity practically fly off their hinges.”
― Jay Abraham, The Sticking Point Solution