CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Bid 25-074, Field Services for Tollway Substation Transformers, to Reinhausen Manufacturing and Transfluid Services, Inc. for an amount not to exceed $597,079
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City of Naperville Electric Utility (Utility) is responsible for maintaining electric service to approximately 63,000 residential and commercial customers. A key component of the 16 electrical substations owned by the Utility, and used to distribute electricity around the city, are transformers that step the 138kV transmission voltage down to lower voltages. At its Tollway Substation, the Utility owns a three-winding transformer referred to as 30XA. This transformer was built in 1971 and steps down voltage from 138kV to 34.5kV and 12.47kV, respectively.
In September 2024, the transformer tripped offline, the Utility attempted to re-energize the transformer, but it was not successful. Subsequent laboratory analysis of the oil showed an alarming increase in combustible gases, including acetylene, suggesting internal arcing within the tank of the transformer. City crews performed additional electrical testing and discovered evidence of a fatal secondary winding to ground failure on one of the 12kV windings. The Utility hired a consultant to verify the test results and enter the transformer to perform a visual inspection. The consultant confirmed catastrophic physical damage within the transformer.
After confirming that the transformer had catastrophically failed, City staff evaluated options and developed multiple bid packages to obtain the best combination of pricing and lead times for the replacement/refurbishment of 30XA. Ultimately staff recommended, and the Council concurred with, awarding Bid 25-029 in June of 2025 to procure a replacement for the Utility’s system spare transformer.
Due to redundancy in design of the system, the loss of this one transformer has not created any extended ongoing outages; however, the Utility is now in a backup contingency configuration. This means that a critical element is out of service and stress is being added on the backup/alternate equipment to maintain service to all customers. Under peak loading conditions, or in the event that another critical component goes off-line, it is not certain that the Utility could maintain service to all of the City’s customers.
In March 2025, the Naperville Electric Utility issued Bid 25-074, Field Services for Tollway Substation Transformers, to return the system to normal configuration.
DISCUSSION:
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Advertisement Date: |
03/18/2025 |
Notices Sent: |
209 |
|
Opening Date: |
05/05/2025 |
Planholders: |
28 |
|
|
|
Proposals Received: |
03 |
Bids were received from the following vendors:
|
Vendor Name |
Option #1 |
Option #2 |
Option #3 |
Option #4 |
Combo #1 |
Combo #2 |
Cost to Idle Contractor Field Crew for 3 Days |
Cost to Reschedule less than 7 Days’ Notice |
Proposed Cost |
|
Engineer’s Estimate |
-$25,000 |
$500,000 |
$200,000 |
$200,000 |
$650,000 |
$650,000 |
$25,000 |
$10,000 |
|
|
Reinhausen |
$49,348 |
$401,537 |
$381,835 |
$381,835 |
$842,720 |
$431,183 |
$45,597 |
$10,000 |
$447,134 |
|
Trans Fluid Services |
$46,635 |
$147,818 Non-Responsive to specifications |
$130,445 |
$130,445 |
$324,898 |
$177,080 |
$19,500 |
$25,000 |
$149,945 |
|
Wesco |
$45,287 |
$1,124,253 |
$487,701 |
$487,701 |
$1,572,554 |
$532,988 |
$50,757 |
$211,344 |
|
Bidders were presented with multiple options to begin returning the system to normal configuration by utilizing the Utility’s system spare transformer:
• Option 1 - Scrap and removal of the existing 30XA Transformer
• Option 2 - Move a 10XA from Westside Substation to 30XA position at the Tollway Substation
• Option 3 - Move spare 75XS transformer from Route 59 Substation to 10XA position at Westside Substation
• Option 4 - Move spare 75XS transformer from Route 59 to 30XA position at Tollway Substation
• Combo Pricing - Option 1, 2, and 3
• Combo Pricing - Option 1 and 4
During the bid evaluation process, all technically acceptable bids were ranked according to the contractors’ return-to-service timeframes, from shortest to longest. Vendors were also required to provide pricing for idling a field crew for three days, as well as the cost to reschedule the work in the event of inclement weather.
Combination pricing was not selected because vendors did not offer any discounts for bundling multiple aspects of the work. Option 1 was rejected because it would have imposed a significant cost on the City for the removal and scrapping of the 30XA transformer. Instead, a separate bid was issued for this portion of the work, resulting in a financial credit to the Utility.
Reinhausen submitted the lowest acceptable bid for Option 2, which involves relocating the 10XA transformer from Westside Substation to Tollway Substation. The project includes upgrade and replacement of key components of the 54-year-old unit while it is drained of oil and out of service. Once the rework is completed, the transformer will be transported via heavy hauler, placed on the foundation at the Tollway Substation using a crane, fully reassembled, refilled with oil, and retested. The City has previously worked with Reinhausen on substation transformer repairs and has consistently received excellent results.
Trans Fluid Services & Stark International submitted the lowest bid for Option 3, which involves relocating the Utility’s system spare transformer from Route 59 Substation to Westside Substation. The scope of work includes draining the oil, disassembling the bushings, transporting the unit between substations, unloading it with a crane, followed by reassembly and testing. Although the City has not previously worked with this vendor, they provided five references with their bid. City staff contacted all references and received satisfactory feedback.
Overall, this project will move an underutilized transformer from the Utility’s Westside Substation to Tollway Substation after the failed 30XA is removed and sold for scrap. The Westside Substation transformer will be replaced with the Utilty’s system spare transformer, and the spare transformer will be replaced with the one that was procured in June of 2025 and will take approximately 36 months to build.
The completion date for this project is February 26, 2028.
FISCAL IMPACT:
CIP#: EU022
The requested award is expensed to the account listed below. The 2025 Budget includes $1,160,000 for Emergency Substation Repairs. The requested award is $597,079, which is favorable to the budget.
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Account Number |
Fund Description |
Total Budget Amount |
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40251300-551502 |
Electric Utility Fund |
$1,160,000 |