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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance CFO: Antonio Puente, Jr. DATE: March 17, 2020 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a contract with ABB, Inc., for the supply of ABB Turbo Charger Cartridges for the electric generating equipment at the Denton Energy Center; providing for the expenditure of funds therefor; and providing an effective date (IFB 7247 – awarded to ABB, Inc., in the not-to-exceed amount of $418,061.60). The Public Utilities Board recommends approval (7 - 0). INFORMATION /BACKGROUND The Denton Energy Center (DEC) was an approved CIP project for DME that reached commercial operation in June 2018. The DEC provides power at times that renewable energy sources are not readily available. The DEC is a key component of Denton Renewable Resouce Plan’s goal to provide the citizens of Denton with cost-effective electricity from 100% renewable resources. The DEC’s electric generating equipment (12 Gensets and Auxiliaries) requires regular scheduled and unscheduled maintenance to maintain a high level of operational reliability during the period of high wholesale energy prices. The maintenance activities are performed as preventative, predictive and corrective maintenance activities. Maintenance activities are performed as scheduled maintenance based on hours of operation and corrective maintenance are unplanned component failures that most often cause unit outages. In order for the DEC team to maintain high unit availability, replacement parts called “swing sets” must be purchased and placed in on-site parts inventory to reduce downtime. This permits the DEC staff to perform necessary repairs expeditiously and return the generating units to service. The turbo cartridge swing sets are components of the engine that require rebuilding or repair during overhauls. The rebuilding of the component is removed utilizing DEC staff and sent offsite for inspection and repair. This inspection is time consuming resulting in long outage timeframes where the loss of energy revenues has the potential of exposing DME customers to high market prices. With these major components onsite as swing sets, the outage times will be drastically reduced due to off-site shipping time frames and inspection/repair time. With these requested parts, the parts requiring maintenance are simply taken off the unit and the swing set part is installed allowing for the repair work of the removed component to take place after the unit is returned to operating status. Invitation for Bids was sent to 140 prospective suppliers of this item. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Two (2) bids meeting specifications were received. The lowest bid was received by ABB, Inc. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com NIGP Code Used for Solicitation: 690-Power Generator Equipment, Accessories & Supplies Notifications sent for Solicitation sent in IonWave: 140 Number of Suppliers that viewed Solicitation in IonWave: 7 HUB-Historically Underutilized Business Invitations sent out: 6 SBE-Small Business Enterprise Invitations sent out: 34 Responses from Solicitation: 2 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On March 19, 2020, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with ABB, Inc., for the supply of ABB Turbo Charger Cartridges for the electric generating equipment at the Denton Energy Center, in a not-to-exceed amount of $418,061.60. PRINCIPAL PLACE OF BUSINESS ABB, Inc. Deer Park, TX ESTIMATED SCHEDULE OF PROJECT Materials will be ordered upon approval and ongoing for the duration of the not-to-exceed contract. FISCAL INFORMATION These items will be funded from DEC project account 603996501.1365.3460. Requisition #145449 has been entered into the Purchasing software system in the amount of $418,061.60. The budgeted amount for this item is $418,061.60. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Bid Tabulation Exhibit 3: Presentation Exhibit 4: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Jason Brown at 940-349-7140. Legal point of contact: Mack Reinwand at 940-349-8333.