CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Sole Source Procurement 24-238, DVI Edge Software Support, to Dominion Voltage for an amount not to exceed $160,364 and for a two-year term
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Conservation Voltage Reduction (CVR) program enables customers to realize savings on their electric bills with no change in usage habits. This savings is possible by optimizing voltage on the electric grid via the existing smart grid infrastructure and ultimately yields a reduction in bulk energy purchases.
The City Council awarded RFP 13-078, Conservation Voltage Reduction Software to DVI for the software integration and the first three years of maintenance and support on July 16, 2013. The program was fully implemented in 2016. Beyond support, the Electric Utility (Utility) has renewed annually with the annual increase capped at the consumer price index by the initial contract. Since 2021, the program has saved customers $8,075,000.
Kilowatt Hours Customer Reduction and Cost Savings
2021 26,263,340kWh $2.762 million
2022 25,819,168kWh $2.715 million
2023 24,700,869kWh $2.598 million
DISCUSSION:
This Sole Source award is requested for the renewal of the annual support and maintenance of the CVR software. A continued maintenance agreement ensures that software updates and support resources are available to the Utility.
The Utility has identified this purchase as a Sole Source because DVI is the developer of
the proprietary software application and is the only entity authorized to perform support. While DVI's CVR software remains a state-of-the-art industry application; the software, integration, and engineering costs to integrate an alternative solution would be cost prohibitive and thus not in the best interest of the City at this time. If the Sole Source procurement were not approved, the Utility would not have access to the updat...
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