CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Single Source Procurement 26-226, SEL Equipment, to A Star Electric Inc., for an amount not to exceed $1,500,000 and for a one-year term
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DEPARTMENT: Electric Utility
SUBMITTED BY: Raheel Arshed, Deputy Director
BACKGROUND:
The Naperville Electric Utility (Utility) is responsible for maintaining and expanding the City’s electric grid and for purchasing and distributing power to commercial and residential customers. To fulfill these responsibilities, it is critical that the Utility have an efficient and reliable means of procuring the materials, equipment, and services necessary to support electric system operations.
Schweitzer Engineering Laboratories, Inc. (SEL) designs, manufactures, and supports specialized electrical equipment used by the Utility in substation and distribution applications. SEL products include meters, protective relays, fault indicators, communications equipment, and remote terminal unit (RTU) equipment used to monitor, protect, and control the Utility’s electrical assets.
The Utility uses SEL equipment throughout its electrical infrastructure to support system protection, monitoring, control, communications, and automation. The Utility has ongoing programs to upgrade relays, meters, remote terminal units (RTUs), communications equipment, and other electrical system components. This equipment is integrated with the Utility’s existing SEL systems and SCADA network, allowing the Utility to remotely monitor and operate electrical equipment and access timely system condition data.
DISCUSSION:
This Single Source procurement is requested for a one-year term from October 1, 2026, through September 30, 2027, for the purchase of SEL materials and equipment through A Star Electric, the only authorized distributor of SEL products. These materials and equipment are necessary to support ongoing Utility operations, current projects, and future system improvements.
The technology and communications used are proprietary to SEL and require compatibility with Utility’s existing SEL equipment and infrastructure. Replacing the existing SEL system with equipment from another manufacturer would require significant replacement or modification of currently installed equipment and systems, resulting in additional costs, extended implementation time, and potential impacts to system reliability and functionality. Continuing to use SEL equipment ensures compatibility with the Utility’s existing infrastructure and supports ongoing operations, maintenance, and future system improvements.
The requested purchase represents the Utility’s estimated equipment needs for the next 12 months, including materials required by field crews and inventory necessary to maintain adequate warehouse stock.
Utility has identified this purchase as a single-source procurement because A Star Electric is the only authorized SEL manufacturer’s representative serving the State of Illinois and is authorized to supply SEL products to the Utility.
The term of the contract is 1 year from October 1, 2026 to September 30, 2027, with two, one-year options to extend.
FISCAL IMPACT:
CIP #: Various
SEL equipment is expensed to the Operating Supplies account listed below. The Electric Utility included $700,000 in the 2026 budget for various operating supplies including SEL equipment. At the point of purchase these items will be expensed to the Operating Supplies account listed below. As these items are put into the field, if they are used to support capital upgrades, the expense will be included in a quarterly transfer to ensure the expense is captured against the proper project. The award requested can be accommodated within the budget, and staff will ensure the 2027 budget includes sufficient funds to support this award into next year.
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Account Number |
Fund Description |
Total Budget Amount |
|
40101300-541407 |
Electric Utility Fund |
$700,000 |