Title
Contract No. 1902433 and Contract No. 1903043
Standby Generator Preventative Maintenance and Repair Services
BCE Score: O&M Project
Body
Agenda of: February 26, 2020
Item No.: 2020-038
Amount: $1,844,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: February 26, 2020
RE: Contract No. 1902433 and Contract No. 1903043
Standby Generator Preventative Maintenance and Repair Services
Vendors: Michigan CAT and PM Technologies
MOTION
Upon recommendation of Navid Mehram, Chief Operating Officer - Wastewater Operating Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 1902433, “Standby Generator Preventative Maintenance and Repair Services” with Michigan CAT at a cost not to exceed $257,000.00 for a duration of 4 years and Contract No. 1903043, “Standby Generator Preventative Maintenance and Repair Services” with PM Technologies, at a cost not to exceed $1,587,500.00 for a duration of four (4) years; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA operates seventy-eight (78) generators in twenty-five (25) locations. These generators provide back-up power to essential facilities for both Wastewater and Water operations as required by “The 10 States Standards” for water and wastewater facilities. These generators range in size from twenty (20) Kilowatts to two (2) Megawatts (MW). For reference, a two MW generator can power nearly five hundred (500) homes. Fifty-three (53) of the seventy-eight (78) generators in this Contract are two (2) MW.
The generators are designed to sit idle until needed during a power loss. At the time of power outage, the units must be able to start up, transfer power and keep the critical equipment of the facility operating reliably for the duration of the power outage. After power is restored, they need to seamlessly transition the facility back to grid power, shut down and remain ready for the next power outage. If these generators do not perform as designed, power will be lost at these Facilities and continued operations of critical equipment will not be possible until power is restored. Total loss of power could lead to a violation to the GLWA National Pollutant Discharge Elimination System (NPDES) Permit, GLWA contractual requirements, facility flooding, loss of pressure, boil water alerts, and/or injury to staff or the public. Total power loss is considered catastrophic and the extent of effects and damage can be limitless.
JUSTIFICATION
All GLWA standby generators require preventative maintenance service, testing and repair services to ensure they operate properly and remain in compliance with 10 States Standards for water and wastewater facilities. These generators are also legally required to remain in operation and have regular service and testing performed as required by the fire code under National Fire Protection Association (NFPA) 110.
To ensure proper operation of GLWA emergency generator systems and compliance with the 10 States Standards, NFPA 110 and manufacturer’s recommendations, GLWA has elected to outsource this service to vendors that retain the appropriate specialized technicians to complete the required preventive maintenance, repairs, testing and monitoring for combustion engines that provide electricity. The services include routine maintenance, testing, troubleshooting, repair and emergency response. Routine maintenance is performed at 6 month and annual intervals in order to inspect the condition of the generator and its associated systems and replace consumables such as oil, filters and sealing components. Testing is performed at similar intervals to check for automatic operation and to verify the generator is able to reach its rated load capacity to provide full power to our facilities. Finally, troubleshooting, repair and emergency response is provided by this contract, when necessary, to restore the generators to working order and keep our facilities powered up and available.
The GLWA intends to award both vendors with the option for each facility to select the vendor, which will provide the preventative service. Due to the criticality and the magnitude of the units that GLWA operates, it is important to have the necessary flexibility in the event that one vendor is unable to provide the necessary service in the timely manner for GLWA to maintain operations, safety, and compliance.
FINANCIAL PLAN IMPACT
Summary: The services outlined under this contact have been anticipated in the Operations and Maintenance (O&M) budgets for both Water and Sewer operations. The maximum value of this contract is within financial plan.
Funding Source: Operations and Maintenance
Cost Centers: Multiple Cost Centers throughout Water and Wastewater Operations
Expense Types:
617900 - Contractual Operating Services - Preventative maintenance
622300 - Repairs & Maintenance Equipment - Preventative maintenance and repairs
622400 - Repairs & Maintenance Facilities - Preventative maintenance and repairs
Estimated Financial Plan by Year and Related Estimating Variance:
FY 2020 (Prorated) $153,200
FY 2021 469,100
FY 2022 471,100
FY 2023 473,500
FY 2024 (Prorated) 277,600
Total Financial Plan $1,844,500
Maximum Contract(s) $1,844,500
Variance -0-
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on February 12, 2020. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.