CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Bid 22-189, Electrical Utility Transformers, to WESCO Distribution, for an amount not to exceed $1,614,683, plus a 5% contingency
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Electric Utility ("Utility") purchases power transformers, which are a critical part of the City's electric distribution grid. These transformers are used as replacement for failed units or damaged units and for new developments. An inventory of transformers is maintained in the warehouse at the Electric Service Center to support on-going operations.
There is a shortage of transformers for industrial and utility providers nationwide. Due to the current state of the supply chain, manufacturers are constrained by limited capacity, inability to obtain raw materials such as metals, and a lack of qualified labor to produce the transformers. With quoted lead times in the 50 to 125-week range for this type of equipment, the Utility needs to place orders today in order to receive the equipment forecasted to meet needs one to three years out.
In June 2022, the Electric Utility issued Bid 22-189, Electrical Utility Transformers, to purchase from a distributor the estimated quantities of single phase and three phase pad and single-phase pole mounted transformers needed to support the utility's inventory.
DISCUSSION:
Advertisement Date:
06/07/2022
Notices Sent:
31
Opening Date:
06/23/2022
Planholders:
17
Proposals Received:
02
Bids were received from the following vendors:
Vendor Name
Price
WEG Transformers
$762,651
Wesco Distribution
$1,614,683
Wesco Distribution's total bid appears significantly higher because Wesco provided a bid for all units requested. WEG Transformers provided a bid only for the three-phase pad mount units with a lead time of 90-92 weeks. Wesco's bid for three-phase pad mount units was $918,619 with a lead time of 56-74...
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