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Home My WebLink About04. Authorize pre-selection of supliers for Solids Handling Facility Improvements, DP 7348, and authorize contracts for specialty services Page 1 of 6 Item 4. CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: DECEMBER 20, 2018 SUBJECT: AUTHORIZE THE PRE-SELECTION OF THE FOLLOWING SUPPLIERS FOR THE SOLIDS HANDLING FACILITY IMPROVEMENTS, DISTRICT PROJECT7348: (1)ANDRITZ SEPARATION TECHNOLOGIES, INC. FOR THE DEWATERING CENTRIFUGE SYSTEM EQUIPMENT IN THE BASE AMOUNT OF $1,968,858; AND (2) SCHWING BIOSET FOR THE CAKE PUMPS EQUIPMENT IN THE BASE AMOUNT OF $1,973,350; AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACTS TOTALING $210,771 WITH ANDRITZ SEPARATION TECHNOLOGIES, INC. ($60,771)AND SCHWING BIOSET ($150,000) FOR SPECIALTY SERVICES RELATED TO FUTURE EQUIPMENT INSTALLATION FOR THE PROJECT SUBMITTED BY: INITIATING DEPARTMENT: NATHAN HODGES, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES tar_, Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE Board of Directors (Board) authorization is required for the General Manager to enter into a project contract in an amount that exceeds $175,000. December 20, 2018 Regular Board Meeting Agenda Packet- Page 28 of 168 Page 2 of 6 BACKGROUND I n 2016, staff initiated the Solids Handling Facility Improvements, District Project 7348 (Project)to address the immediate and near-term project needs and retained Black& Veatch (B&V), as authorized by the Board on December 1, 2016, to provide evaluations of issues and pre-design work.Addressing dewatering system deficiencies was identified as an immediate need. The dewatering centrifuges and cake pumps were installed in 1988 and have been in operation for 30 years. These systems are beyond their useful life and require frequent offsite major rebuilds with some components being no longer available. As demonstrated by two centrifuge pilot testing, modern centrifuge technology can and will provide improved performance, which in turn will optimize furnace operation, and reduce fuel (natural gas) usage, greenhouse gases, and the risk of air permit violations. The objectives of the dewatering improvements are to provide consistent cake solids with optimum characteristics for multiple hearth furnace (MHF) operation and ensure reliable operation, while reducing equipment power and polymer consumption.As part of the evaluation process, alternatives for the centrifuges and cake pumps were developed. The evaluation of alternatives included economic and non-economic criteria. Economic criteria included capital, performance, and operating and maintenance costs, while non-economic criteria included reliability, operability, maintainability, and environmental impacts. The alternative of four centrifuges/cake pumps was recommended as the one best able to ensure adequate reliability of plant operations, to maximize use of the existing building infrastructure, and to improve dewatering system performance, with resultant benefits for MHF operation. Continued use of the existing centrifuges/cake pumps was determined to provide inadequate plant reliability as the equipment is becoming increasingly obsolete and Central San will not realize the benefits of modern technology for improved performance. New equipment will significantly improve the following: • The existing centrifuges require frequent offsite major rebuilds. This compromises the reliability of the overall solids processing. • The existing centrifuges and cake pumps are becoming increasingly obsolete with some components no longer commercially available. • New centrifuges have improved performance which will reduce power consumption, fuel use in the multiple hearth furnaces, reduce polymer use, minimize upset furnace conditions, and risk of permit violations. Centrifuges and cake pumps available for the municipal market have different configuration, space, weight, power and utility requirements, making it difficult to show specific installation requirements in the construction bid documents for multiple potential suppliers. Selection of this equipment during detailed design was recommended to facilitate the design process and provide specific installation requirements in the construction bid documents, reducing the risk of change orders, as presented to the Board on July 5, 2018. A questionnaire was sent to prospective centrifuge and cake pump manufacturers to obtain information on performance capabilities of proposed equipment and qualifications of potential suppliers. Responses to the questionnaire were then used to establish minimum equipment performance requirements for capacity, cake solids concentration, to capture efficiency, power and polymer use, and to evaluate whether the differences in size, weight, and utility requirements would be difficult to accommodate. The responses were also used to establish minimum manufacturer qualifications related to experience providing equipment for similar facilities and aftermarket service support. Performance requirements were set to ensure optimum performance requirements and adequate manufacturer qualifications that would also provide competitive bidding. Multiple manufacturers were identified for the centrifuges and cake pumps that were able to meet acceptable equipment performance and supplier qualifications. Selection documents, including bidding procedures, contract requirements, and technical specifications, December 20, 2018 Regular Board Meeting Agenda Packet- Page 29 of 168 Page 3 of 6 were developed separately for both the centrifuges and cake pumps. The bid submittal packages included two parts. Part 1 consisted of a Bidders Proposal that included supplier qualifications and supplementary information to establish compliance with technical requirements. Part 2 consisted of the bid (purchase price). Bidders Proposals were opened first, and only bids by respondents determined to meet the minimum proposal qualifications were then opened after a period to allow for an appeal process. The manufacturer's scope for the bid has two stages: • Stage I - Supply equipment shop drawings and design coordination during development of the Project bid documents, which will be performed under direct contract with Central San. • Stage I I -After Board award of the Project construction contract, furnish equipment for installation and provide associated services, such as commissioning, performance testing, and warranty. This scope of Stage I I will be assigned to the general contractor to provide single source responsibility for the installation, including equipment payments. Pre-Selection and Bidding Process: The cake pumps and centrifuges contract documents were publicly advertised. Each contract document included two bid schedules: 1) a base bid schedule, which determines the basis of selection; and 2) an additive bid schedule. For the cake pumps, the contract documents were publicly advertised on September 24, 2018. On October 26, 2018, one (1) sealed bid submittal package was received from Schwing Bioset, and the proposal (Part 1)was opened. Engineering staff, with the assistance of B&V, conducted a review of Part 1 and determined that the bidder was responsive and met the minimum qualifications and experience. On November 9, 2018, the bid (Part 2) of the package was publicly opened. The total lump sum of the base bid schedule (Stages I and 11)was $1,973,350. Staff conducted a technical and commercial review of the bid and determined that Schwing Bioset's bid was responsive and responsible. The additive bid schedule for the cake pumps from Schwing Bioset included additional warranty, spare parts, and service maintenance agreements. Staff recommends including the alternative bid item for a spare pump assembly($97,300). For the centrifuges, the contract documents were publicly advertised on September 24, 2018. On October 26, 2018, three (3) sealed bid submittal packages were received, and Part 1 of the packages were opened. Engineering staff, with the assistance of B&V, conducted a review of the proposals and determined that all the bidders were responsive and met the minimum qualifications and experience. On November 28, 2018, Part 2 of the packages were publicly opened. The three (3) sealed base bids ranged from $1,968,858.00 to $2,637,531.25. Staff conducted a technical and commercial review of the lowest bid and determined that Andritz Separation Technologies, Inc. (Andritz) is the lowest responsive and responsible bidder with a base bid schedule amount of$1,968,858.A summary of bids received is shown in Attachment 1. The additive bid schedule from Andritz included additional warranty, spare parts, and service maintenance agreements. Staff recommends including the alternative bid items for an additional 3-year warranty period ($59,100) and a spare rotating element ($149,600). ALTERNATIVES/CONSIDERATIONS Several equipment alternatives were evaluated by B&V, as stated before, including continued use of the existing system or partial replacement. It was determined by B&V and staff (Capital Projects and Operations)that the best approach would be to replace the dewatering system as recommended. Other alternatives that the Board could consider include the following: December 20, 2018 Regular Board Meeting Agenda Packet- Page 30 of 168 Page 4 of 6 Alternative 1 - Reject the bids and continue the project design without equipment contracts. This is not recommended due to the technical complexity and differences in the available dewatering equipment on the market. Including the equipment contracts will help reduce the potential for change orders and problems associated with substitutions, and simplify and cut the time required for equipment procurement under the construction phase. Alternative 2 - The contract includes provisions to allow Central San to purchase the equipment directly from the manufacturers. This is not recommended at this time since the current plan is to continue final design of the project and reassign the purchase of the equipment to the installing contractor. However, if complications occur during the bid of the Project, staff will have the ability to purchase this equipment at the specified costs and install under a separate contract. FINANCIAL IMPACTS The current contract commitment totals $210,771, which includes the specialty services for shop drawings, design coordination, and engineering related to the installation of the equipment. The two contracts for the selected centrifuges and cake pumps will be added to the Project contract documents for the Solids Handling Facility Improvements and include the costs for the equipment, taxes, delivery, spare parts, commissioning, testing, documents, and warranties that total an amount of approximately$4,040,000. These costs will be reassigned to a general contractor upon successful award of the Project construction contract at a later date. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this subject at the meeting on December 10, 2018, and recommended approval of the equipment contracts. RECOMMENDED BOARD ACTION Staff recommends the following for the Solids Handling Facility Improvements, District Project 7348: 1. Authorize the pre-selection of the following suppliers: (1)Andritz Separation Technologies, I nc. for the dewatering centrifuge system equipment in the base amount of $1,968,858; and (2) Schwing Bioset for the cake pumps equipment in the base amount of $1,973,350; and 2. Authorize the General Manager to execute contracts totaling $210,771 with And ritz Separation Technologies, I nc. ($60,771) and Schwing Bioset ($150,000)for specialty services related to future equipment installation. Strategic Plan re-In GOAL TWO: Strive to Meet Regulatory Requirements Strategy 1 - Strive to achieve 100%permit compliance in air, water, land, and other regulations GOAL FOUR: Develop and retain a highly trained and innovative workforce Strategy 3- Meet or exceed industry safety standards GOAL FIVE: Maintain a Reliable Infrastructure Strategy 1 - Manage assets optimally throughout their lifecycle, Strategy 2- Facilitate long-term capital renewal and replacement December 20, 2018 Regular Board Meeting Agenda Packet- Page 31 of 168 Page 5 of 6 ATTACHMENTS: 1. Summary of Bids December 20, 2018 Regular Board Meeting Agenda Packet- Page 32 of 168 Page 6 of 6 ATTACHMENT 1 SOLIDS HANDLING FACILITY IMPROVEMENTS PROJECT DEWATERING CENTRIFUGE SYSTEM EQUIPMENT SELECTION CONTRACT DISTRICT PROJECT 7348 SUMMARY OF BIDS PROJECT NO.: 7348 NO. OF ADDENDA: 2 DATE/TIME: NOVEMBER 28, 2018/3:00 PM PROJECT NAME: SOLIDS HANDLING FACILITY IMPROVEMENTS PROJECT DEWATERING CENTRIFUGE SYSTEM EQUIPMENT SELECTION CONTRACT PROJECT MANAGER: NATHAN HODGES PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA NO. BIDDER BID PRICE 1 Andritz Separation $1,968,858.00 Technologies, Inc. 2 Alfa Laval, Inc. $2,026,480.00 3 GEA Mechanical Equipment $2,637,531.25 US, Inc. BIDS OPENED BY /s/ Katie Young DATE: November 28, 2018 December 20, 2018 Regular Board Meeting Agenda Packet- Page 33 of 168