Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: October 24, 2023
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 Prolec-GE Waukesha, Inc., for the purchase of one
(1) Substation Power Transformer for Denton Municipal Electric, providing for the expenditure of funds
therefor; and providing an effective date (RFP 8155 – awarded to Prolec-GE Waukesha, Inc., in the not-to-
exceed amount of $2,260,412.00).
INFORMATION/BACKGROUND
Denton Municipal Electric (DME) Underwood Substation is an approved Capital Improvement Plan (CIP)
project that will require the purchase of 25/33/50/56 MVA power transformers. DME solicited Request for
Proposals (RFP) to provide a 138kV to 24.9kV power transformer and spare replacement parts.
Substation power transformers convert voltage from the transmission level (138,000 volts) to the
distribution level (24,900 volts or 13,200 volts) for use on distribution circuits that serve customers. The
Underwood Substation is under design and will require two power transformers. This RFP resulted in one
manufacturer capable of providing one transformer in an adequate time. Another solicitation will be
completed in early 2024 to acquire one additional transformer for the Underwood Substation and three more
for other approved CIP projects. The remaining proposals in this solicitation had extended lead times, were
not built in the United States, or had technical exceptions and therefore not selected.
The marketplace is worldwide and can be problematic for the purchase of power transformers. Product
quality, manufacturing methods, and design practices vary significantly between manufacturers. DME
indicated in the RFP that proposals will only be accepted for transformers manufactured in the United
States. The best value evaluation methodology was employed for this RFP because it allows for important
factors such as performance history, compliance with specifications, lead time, and price to be considered
in the evaluation of the RFP.
The contract estimate is based on the purchase of one (1) transformer and spare parts. The market for
transformers has been quite volatile over the past few years. A 20% contingency was included in the contract
amount to account for price changes in raw materials and for unexpected design changes. The proposed
contract does not require the expenditure of any minimum amount.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Contract Estimate
Price Item
$1,717,977 Xfmr Base Price
$9,940 Heat Run
$116,400 QTMS Transformer Monitor
$18,450 Spare HV Bushings (3)
$9,960 Spare LV Bushings (3)
$5,280 Spare HV Arrestors (3)
$2,370 Spare LV Arrestors (3)
$3,300 Spare Fan Assemblies (3)
$1,883,677 Total
$376,735 20% Contingency
$2,260,412 Total with Contingency
Request for Proposals was sent to 754 prospective suppliers, including 32 Denton firms. In addition,
specifications were placed on the Procurement website for prospective suppliers to download and advertised
in the local newspaper. Six (6)) proposals were received, with four (4) meeting specifications. References
were checked, and proposals were evaluated based upon published criteria including price, delivery,
compliance with specifications, and probable performance. Best and Final Offers (BAFO) were requested
from the top firm. Based upon this evaluation, Prolec-GE Waukesha, Inc. was ranked the highest and
determined to be the best value for the City.
NIGP Code Used for Solicitation: 285, 287, 553, 578, and 691
Notifications sent for Solicitation sent in IonWave: 754
Number of Suppliers that viewed Solicitation in IonWave: 24
HUB-Historically Underutilized Business Invitations sent out: 63
SBE-Small Business Enterprise Invitations sent out: 314
Responses from Solicitation: 6
Responses Meeting Specifications: 4
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On October 23, 2023, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award a contract with Prolec-GE Waukesha, Inc., for the purchase of one (1) Substation Power Transformer
for Denton Municipal Electric, in a not-to-exceed amount of $2,260,412.
PRINCIPAL PLACE OF BUSINESS
Prolec-GE Waukesha, Inc.
Waukesha, WI
ESTIMATED SCHEDULE OF PROJECT
Order will be placed immediately upon contract approval.
FISCAL INFORMATION
These items will be funded from Underwood Substation account 603289500. Requisition #162055 has been
entered into the Purchasing software system in the amount of $1,883,677.00. The budgeted amount for this
item is $2,260,412.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing Evaluation
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Mark Zimmerer, 940-349-7169.
Legal point of contact: Marcella Lunn at 940-349-8333.