CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the Award of Bid 17-052, Indian Hill Transformer Removal, Build and Installation, to Niagara Transformer Corporation for an amount not to exceed $762,133, plus a 5% contingency.
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DEPARTMENT: Electric Utility
SUBMITTED BY: Mark Curran, Electric Utility Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Indian Hill Substation was built in 2002 to serve the Electric Utility’s load in the northeast section of Naperville as well as the Lucent Campus. In March of 2012, one of the two substation power transformers feeding the Lucent Campus failed. At the time of failure, the transformer that served the utility load in that area was reconfigured to restore two feeds to the Lucent Campus. This was a temporary solution, and with the current load growth and future projects planned there, the failed transformer is now being replaced so the station can again feed the Naperville utility load. This procurement will remove and replace the failed transformer that provides one of two feeds to the Lucent Campus with a new unit which will include advanced asset management capabilities.
DISCUSSION:
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Advertisement Date: |
02/22/2017 |
Notices Sent: |
154 |
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Opening Date: |
03/24/2017 |
Planholders: |
19 |
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Bids Received: |
6 |
BID TABULATION
The following bids were received:
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Company Name |
Bid Amount |
|
Niagara Transformer Corporation |
$762,133 |
A total of six bids were received with costs ranging from $578,086 to $893,850. However, five of the bids were determined to be non-responsive, meaning that they did not submit the required documentation as required in the bid document. Niagara Transformer was the only company to meet all of the requirements, including a five-year factory warranty with transportation costs included, removal of the existing transformer, third-party factory and onsite testing as well as certification of existing transformer pad and spill containment.
Staff considered re-bidding the project. However, after conducting an analysis of the bid responses, it was determined that Niagara’s bid price was in line with the overall market. Additional review also showed that the lower value bids did not include the full scope of work as requested in the bid specifications. Portions of the scope that were omitted are key to the success of the overall project and increase risk to the utility if the transformer prematurely fails. Staff contacted non-responsive bidders and it is extremely unlikely that a re-bid of this project would cause the vendors to include the omitted work; rebidding this project would likely push the transformer installation to mid-2018.
FISCAL IMPACT:
CIP #: EU 79 - Power Transformer Replacement
The cost of this contract will be expensed to the Capital Improvement account below; a total of $600,0000 was budgeted for the substation power transformer in CY2017. The difference of $162,133 will be covered through savings in other electric utility capital outlay.
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Account Number |
Fund Description |
Total Budget Amount |
|
410.3390.533.70-89 |
Electric Utility |
$5,115,000 |