CITY MANAGER AUTHORITY PROCUREMENT AWARDS
ACTION REQUESTED:
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Approve the award of Bid 22-228, Recondition & Rebuild Electrical Utility Distribution Transformers, to Power Electronics for an amount not to exceed $75,000 and for a one-year term
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BACKGROUND:
Due to supply chain issues which have resulted in extended lead times and increased prices for transformers, the Electric Utility (Utility) investigated other options and focused on repair of units that were owned by the Utility but were removed from service due to damage or failure. A bid was issued to determine costs to extend the lifespan of transformers that have been taken out of operation by repairing or reconditioning them.
In July 2022, the Electric Utility issued Bid 22-228, Recondition & Rebuild Electrical Utility Distribution Transformers, to identify contractors willing to inspect, recondition or rebuild single phase, both pole and pad mount transformers, and three phase pad mount transformers. Several companies declined to bid due to having too much work from other utilities seeking to repair transformers.
DISCUSSION:
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Advertisement Date: |
07/14/2022 |
Notices Sent: |
48 |
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Opening Date: |
07/29/2022 |
Planholders: |
11 |
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Proposals Received: |
2 |
Bids were received from the following vendors:
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Vendor Name |
Proposed Cost |
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Emerald Transformer |
$129,200 |
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Power Electronics |
$142,854 |
Bidders were requested to provide a cost for inspection, recondition, rebuild and a scrap credit on the bid worksheet. The Utility also provided bidders with a list of transformers that are intended to be inspected within the first year.
The low bid was deemed non-responsive due to not providing a cost for all items on the bid worksheet and for including exceptions to the bid requirements.
After incorporating the bid costs, the Utility has determined that an award of $75,000 is sufficient for the services requested.
The term of this contract is from date of award to August 31, 2023, with one, one-year option to extend.
FISCAL IMPACT:
CIP#:
Transformer rehabilitation is expensed to the Equipment Maintenance account listed below. A total of $25,000 is budgeted for transformer testing, analysis and repair in 2022. The award will be budgeted appropriately to address anticipated needs in 2023.
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Account Number |
Fund Description |
Total Budget Amount |
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40271300-531303 |
Equipment Maintenance |
$31,200 |