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HomeMy WebLinkAbout07.a. (Handout) Authorize sole-source contract with Solar Turbines re cogen unit1,4r• (Handoai)- COGENERATION CONTROLS UPGRADE September 5, 2013 Craig Mizutani Senior Engineer Central Contra Costa Sanitary District Background • Cogeneration system experienced explosion in March of 2012. • Downtime: Six months. • Additional Utility Costs: $960,000 +. • Re- commissioning was hampered by the age of the fuel control valves and control system. These were identified as obsolete. • Solar Turbines is unable to support the current equipment under a longterm service agreement. • DP 7308 - Current CIB $500,000. 1 Current Maintenance • Short -Term agreement with Solar Turbines. • Nine month contract. • Labor only - No parts or consumables are included. • If turbine fails, District pays for repair. K-1 IN 11 Long Term Service Agreement • Long Term Service Agreement (also called Extended Service Agreement) is a multi- year, all inclusive contract. • Covers all parts and labor. • Guaranteed availability. • Turbines have been covered by an ESA for 20 years until the explosion. 2 Controls Upgrade • Fuel and Control System Upgrades: - New Control Console (new PLC) - New electronic fuel control valves - Electronic inlet guide vanes - Electric start system - New fire detection system - Installation assistance • Upgrade is required for Long Term Service Agreement. 0 3 Controls Upgrade Cost (Budgetary) Sole Source Request • Solar Turbines is the Original Equipment Manufacturer and Supplier. • Solar Turbines has the proprietary technical knowledge for our system. • Poor experience with work by non -OEM vendors. • District staff is currently negotiating a contract with Solar Turbines for the upgrade. I� v Solar Turbines (Hardware, installation) $530,000 Solar Turbines (Startup & Field Services) $120,000 Field Wiring $250,000 $250,000 Consulting Engineering $50,000 District Staff $50,000 Generator and Misc. Work $300,000 Total $1,300,000 Sole Source Request • Solar Turbines is the Original Equipment Manufacturer and Supplier. • Solar Turbines has the proprietary technical knowledge for our system. • Poor experience with work by non -OEM vendors. • District staff is currently negotiating a contract with Solar Turbines for the upgrade. I� v Recommendation • Authorize sole- source agreement with Solar Turbines. • Approve supplemental authorization of $800,000 to the Treatment Plant Program of the 2013 -2014 CIB. Questions? 5