CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Single Source Procurement 25-325, Electric Switchgear, to S&C Electric Co. via Weldy Lamont Group, Inc., for an amount not to exceed $652,071.24 and for a one-year term
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
To ensure reliable power delivery to its customers, the Electric Utility (Utility) installs high voltage switches at various points on the electric distribution grid. These switches allow Utility workers to isolate equipment and cable during planned maintenance and reduce outage time when a cable or equipment failure occurs. The Utility has over 700 installed switches, which allows most customers’ electrical needs to be fed from at least two sources of power.
In March 1994, the City Council approved the Sole Source award of Contract 93-122 for pad-mounted switchgear and allowed for future switchgear costs with S&C Electric Company to be negotiated, considering material, labor and non-labor production costs. The Utility performed an analysis in 2019 to review the Sole Source justification and found the designation to still be valid.
DISCUSSION:
This Single Source is requested for the purchase of 20 two-way units and five three-way units throughout the year, because lead times are currently approximately 42-46 weeks for this type of equipment.
Weldy Lamont Group, Inc. is the only authorized sales representative for S&C Electric’s manual pad mount switchgear in northern Illinois. A Single Source letter from the vendor is attached.
The term of the contract is from date of award to December 31, 2026.
FISCAL IMPACT:
CIP #: Various
Switchgears are expensed to the Operating Supplies account listed below. Switchgears are initially expensed to the Operating Supplies account and stored in the warehouse. Once they are used for a project and put in the field, staff will assign the expense to the correct capital project. Quarterly, the Finance Department will do a transfer to account for these expenses against capital projects and remove the expense from the Operating Supplies account. These switchgears will be received in 2026 due to lead times. The Electric Utility included $700,000 in the proposed budget for warehouse supplies in 2026. The requested award can be accommodated within the proposed Electric Utility Budget.
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Account Number |
Fund Description |
Total Proposed Budget Amount |
|
40101300-541407 |
Electric Utility Fund |
$700,000 |