Item Coversheet
  Agreements and Contracts - Action
4.

M E M O R A N D U M

TO: 

Board of Directors 
FROM:

Joseph H. Parker, CPA, Director of Financial Services

Jay L'Estrange, Director of Power Generation Services

 
DATE:

July   20, 2021
RE:

Award Procurement Contract No. P-21-02 for the Purchase of Stream Maintenance Valves and Actuators

RECOMMENDATION:
 
Award Procurement Contract No. P-21-02 for the purchase of one 26-inch gate valve and two 26-inch throttling gate valves for the Interbay Low Level Outlet Improvement Project from Frank A. Olsen Co, LLC, in an amount not to exceed $351,071.
BACKGROUND:
 

The streamflow valves and associated piping located at the downstream base of Interbay Dam provides the Federal Energy Regulatory Commission (FERC) required streamflow for the portion of the Middle Fork American River between Interbay Dam and Ralston Afterbay. The Agency’s recently renewed FERC license requires higher streamflows than what is currently obtainable with the existing valves and piping. The Interbay Low Level Outlet Improvement project will increase the piping size, change the valve configuration, and introduce automation capabilities that will allow the Agency to meet the required streamflows.

 

Staff originally planned to purchase the valves and actuators in early 2020. A request for bid (RFB) document was developed by Power System and procurement staff and one bid was received on February 28, 2020. During the due diligence process in evaluating the bid, COVID-19 began to cause various shut-downs across the country and staff determined it would be best to reject all bids and re-procure the items in the future. On April 7, 2021, a second RFB was publicly advertised and provided to potential vendors via "Public Purchase," the electronic procurement website the Agency utilizes. This effort resulted in one submitted bid from Frank A. Olsen Co, LLC, in the amount of $351,071. Agency staff completed the evaluation of the submitted bid and determined that the bid met all requirements and specifications as provided in the RFB. Should this Procurement Contract be awarded at this time, the Agency will issue a purchase order which should ensure the valves and actuators arrive in time for the anticipated installation by Agency staff set to begin in March 2022. 

FISCAL IMPACT:
 
    Project-to-Date Budget $ 824,422  
Additional Funding Request   0  
Subtotal Budget   824,422  
  Less Project-to-Date Expenses and Encumbrances   74,422  
  Available in Project Budget (current)   750,000  
  Less Proposed Action   351,071  
  Total Available in Project Budget (proposed) $ 398,929  

 

Funding for this purchase will come from the Power Division, Capital Projects Budget. There is adequate funding in the project to complete this work in 2022.