2005 AGN DEC 20 I17 - Laserfiche WebLink

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ITEM #17 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF DECEMBER 20, 2005 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Jeannette Olko, Electric Utility General Manager SUBJECT: Award of Bid for Various Transformers, Item #1 to Pauwels Transformers in the Amount of $5,071.79, Items #2, #5, #6 and #7 to Utility Products Supply in the Amount of $88,530.64, and to Reject All Bids for Items #3 and #4. DATE: December 12, 2005 BACKGROUND: The City purchases transformers into Electric Stores inventory when the need arises to upgrade, replace, or install a new transformer for an Electric customer. The City also orders back-up transformers to be used to replace a transformer that goes bad in the system. Back-up transformers are necessary, due to the long delivery time. Because of recent hurricanes in the gulf states, lead times have increased significantly for many transformer manufacturers. In the past, transformer lead times ranged from 4-10 weeks. At this time, the Electric Utility needs to purchase various pad mount transformers to be used for back-up and also for new development projects in progress. DISCUSSION/ANALYSIS: On November 15, 2005, the Electric Department posted a Notice Inviting Bids for these transformers. Bid packages were mailed to six suppliers of distribution transformers. A bid opening was held at 2:00 P.M. on December 6, 2005 at the Electric Department Administrative offices. Five bids were received and evaluated, with Southwest Power submitting two bids from different manufacturers. A Bid Analysis is attached showing the price and delivery quoted by each vendor. The recommended vendor's price is underlined for each size transformer. The total of bid award is listed at the bottom for the recommended vendor. Also attached is a Transformer Load Loss Evaluation. This evaluation shows the life cycle cost of the transformer over its useful lifetime, using a combination of loss calculations supplied by the transformer manufacturer and the unit price quoted by the vendor. To evaluate the lowest cost bid, the life cycle costs demonstrate the cost of the transformer over its "in-service" life, taking into consideration the degradation over time. The transformer that loses the least over the useful life results in the lowest cost of the equipment. It is a function of which manufacturer has the least loss.