HomeMy WebLinkAbout16 Dispense Bidding and Negotiate Directly Electric Materials
December 7, 2022 Negotiate Directly with Suppliers for Electric MaterialsDispense with Competitive Bidding and Consideration to ACTION ITEM #16
•BACKGROUNDBACKGROUND Electric MaterialsConsideration to Dispense with Bidding Electric MaterialsConsideration to Dispense with Bidding two transformer typescurrent limiting fuses, and
switches, mount Pad •categoriesremain for three electric material item Challenges •mitigate supply chain issuesHelp •delivery challengesand availability efficiencies in avoiding Provide
•natureMaterials procured are routine and recurring in •timeframeconsideration and possible approval in the December annual procurement requests to the Board for Staff presents •and
maintenanceOperation •developmentCustomer •needsare necessary to meet District and timely procurements of electric materials and supplies Regular
•BACKGROUNDBACKGROUND Electric MaterialsConsideration to Dispense with Bidding Electric MaterialsConsideration to Dispense with Bidding workoutages during maintenance, construction,
and repair inimize M•circuitsthe ability to switch between main feeder Provide •linesdistribution underground electric mount switches are used to sectionalize (open/close) Pad •Necessary
components of electric system construction and operation•two transformer typesmount switches, current limiting fuses, and Pad •items, no bids were received for three Unfortunately•materialsof
electric the majority for received bids esponsive R•openings were held on Monday, November 14, 2022Bid •2022began in October procurements advertising for annual Bid
•BACKGROUNDBACKGROUND Electric MaterialsConsideration to Dispense with Bidding Electric MaterialsConsideration to Dispense with Bidding customersto safely provide electric service to
Necessary •customers (120v / 240v)level voltages for to usable service Transformers convert higher distribution voltages •adopted 2022 Wildfire Mitigation Planlimiting fuses are required
to be in compliance with the Board Current •customerssystem reliability to Improve •open) outagessafely and efficiently sectionalize (Fuses
•BACKGROUNDBACKGROUND Electric MaterialsConsideration to Dispense with Bidding Electric MaterialsConsideration to Dispense with Bidding Schedule B5 and B6)No bids received for 14.4kV
pad mount transformer types (2 units, •)Received one bid for all 12.47kV rated transformer types (35 units•monthstimes now in excess of 12 Delivery •shortage of electric transformersNationwide
•steel“core“ including materials are struggling to get the specialized raw Manufacturers
•ANALYSISANALYSIS Electric MaterialsConsideration to Dispense with Bidding Electric MaterialsConsideration to Dispense with Bidding in a sensible and practical wayBetter serve the public
interest by dealing with the supply chain issues •timethe shortest effective method to acquire critical materials in -efficient and costMost •supplierswith with competitive bidding
and allow staff to negotiate directly Dispense •to, the District could make findings Alternatively•bidsSupplier feedback indicates it may be impossible to obtain •time and resourceswould
also require additional staff Reposting bids •Due to pervasive supply chain issues affecting electric utility materials•degree of uncertainty if reposting will yield new resultHigh
•bidsrepost the could be to one option bids, response to no In
•ANALYSISANALYSIS Electric MaterialsConsideration to Dispense with Bidding Electric MaterialsConsideration to Dispense with Bidding 20207.7.r–Sections 20206.4 PCC •lowest responsible
bidder process to the bid Competitive •10,000for materials and supplies that exceed $to award contracts public agencies (District) generally requires PCC •Code (PCC)the Public Contract
relating to California court decisions involves for dispensing with competitive bidding Justification •Resolutionefficient way to make findings is by adoption of a Most •lawaccordance
with California state In •biddingdispense with competitive proceed with this option, the Board must make findings to To
•ANALYSISANALYSIS Electric MaterialsConsideration to Dispense with Bidding Electric MaterialsConsideration to Dispense with Bidding ”competitive biddingundesirable or impractical, a
public agency may dispense with advantage, and the advertisement for competitive bids would thus be competitive proposals would be unavailing or would not produce an if the subject
of a contract is such that that “holds (1980), 631v. Pasadena Development Agency, 104 C.A. 3d GraydonCourt decision •wayproblems in a sensible, practical applied in a way which denies
public agencies the authority to deal with that the competitive bidding statutes are not to be determined (1994), Electric, Inc. v. City of Los Angeles, 9 Cal.4th 161 Domarourt decision
C•provide guidance to the Districtcourt decisions California
•ANALYSISANALYSIS Electric MaterialsConsideration to Dispense with Bidding Electric MaterialsConsideration to Dispense with Bidding 50,000$-Schedule B5 and B6 units Transformer •$300,000
-Current Limiting Fuses •350,000$-Mount Switchgear Pad •procurementto negotiate directly with suppliers for the FY23 also recommends that the Board authorize the General Manager Staff
•typesmount switches, current limiting fuses, and two transformer Pad •biddingdispensing with competitive 23 Board adopt Resolution 2022Therefore staff recommends the
•FISCAL IMPACTFISCAL IMPACT Electric Materials-Consideration to Dispense with Bidding Electric Materials-Consideration to Dispense with Bidding budgetsvarious capital expenditure project
Materials are part of •procurementsmaterial electric 23 Budget includes funding for -approved FY22Board
•RECOMMENDATIONRECOMMENDATION Electric Materials-Consideration to Dispense with Bidding Electric Materials-Consideration to Dispense with Bidding 50,000$-$300,000; and Transformer Schedule
B5 and B6 units -Fuses $350,000; Current Limiting -annual amounts: Pad Mount Switchgear the FY23 procurement of the following materials up to the listed Authorize the General Manager
to negotiate directly with suppliers for •as described in the staff report attached hereto.”units Current Limiting Fuses, and Transformer Schedule B5 and B6 Mount Switchgear, Pad for
hereby dispenses with competitive bidding an amendment to Section 1 such that it states, “That the District with bidding 23 dispensing with competitive -Resolution 2022Adopt