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HomeMy WebLinkAbout7 Substation Voltage Regulators Agenda Item # 7 TRUCKEE r Public Utility District CONSENT To: Board of Directors From: Joe Horvath Date: March 19, 2014 Subject: Consideration of the Award of a Contract for Substation Voltage Regulators 1. WHY THIS MATTER IS BEFORE THE BOARD Board approval is required for expenditures in excess of$15,000. 2. HISTORY The existing voltage regulators at Martis Valley Substation are the original units installed in 1982. Although they have served the District well for almost 34 years, they are starting to show signs of their long service life including fluid leaks and the need for frequent maintenance. The useful life of a voltage regulator is approximately 30 years and they are due for replacement. 3. NEW INFORMATION A specification for replacement regulators and controls was prepared and a request for bids was sent out on January 24, 2014 and advertised on January 31, 2014. A total of three bids were recieved and opened on March 10, 2014. A summary of bids received is shown below: Bidder Amount Responsive H D S upply $ 88,471.57 Yes Siemens Energy, Option#1 $ 77,352.63 No Siemens Energy, Option#2 $ 119,036.85 Yes The apparent low bidder, Siemens Energy Option #1, failed to meet the technical requirements of the specification, hence their bid is non-responsive to District contract requirements. The responsive low bidder was determined to be HD Supply of Portland, Oregon with a bid amount of$88,471.57. 4. FISCAL IMPACT The FY14 Budget has $60,000 allocated for the purchase of these voltage regulators. The HD Supply bid is $88,471.57. The additional funds required to award the bid, in excess of the budgeted amount, will be obtained from the Electric General Fund. 5. RECOMMENDATION a) Find Siemens Energy Option #1 bid non-responsive. b) Award the bid for voltage regulators to HD Supply in the amount of $88,471.57, plus a 10 percent change order allowance in the amount of $8,847 for an amount not to exceed $97,318 plus tax. Stephen Hollabaugh Michael D. Holley Assistant General Manager General Manager