HomeMy WebLinkAbout07. Authorize a contract equipment change order with APG-Neuros for District Project 100015 Page 1 of 3
Item 7.
Algi
CENTRAL SAN BOARD OF DIRECTORS
WE VS.101 M POSITION PAPER
MEETING DATE: JUNE 17, 2021
SUBJECT: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PRE-PURCHASE
CONTRACT CHANGE ORDER I N AN AMOUNT NOT TO EXCEED $314,000
WITH APG-NEUROS, INC. TO INCLUDE THREE NEW FILTER HOUSES
FOR THE ELECTRIC BLOWER IMPROVEMENTS, DISTRICT PROJECT
100015
SUBMITTED BY: INITIATING DEPARTMENT:
EDGAR J. LOPEZ, CAPITAL PROJECTS ENGINEERING AND TECHNICAL SERVICES-
DIVISION MANAGER CAPITAL PROJECTS
REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL
SERVICES
Roger S. Bailey
General Manager
ISSUE
Authorization from the Board of Directors (Board) is required to execute a contract change order in an
amount greater than $200,000.
BACKGROUND
On November 19, 2020, the Board awarded an equipment procurement contract to APG-Neuros, I nc.
(APGN)for three new electric blower systems and special services in an amount not to exceed
$2,998,000. Staff had recommended to bid and procure the blowers ahead of the installation contract due
to the complexity involved in the blower design and the significant time necessary to receive the
equipment. The APGN contract includes the following:
• Three large blowers, each sized to produce 35,000 scfm;
• Electrical package, variable frequency drives, controls, and chiller systems;
• Startup, commissioning services, and training;
• Additional three-year correction warranty; and
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• Routine spare parts.
The design of the blower systems is complete, and the equipment has been released for fabrication.
Central San will provide the blower equipment to the installer or general contractor under the Electric
Blower Improvements, District Project 100015 (Project), which is currently out for public bid.
During design, staff determined, and verified by the designer(HDR, I nc.), that the existing filter houses
could not be reliably used with the new high efficiency and speed turbo APGN blowers without major
rehabilitation to the metal coatings and filter supports. In addition, rehabilitation was not cost effective since
the failed coatings contained lead and would require hazardous material abatement.
HDR, Inc. has included the replacement of the filter houses as part of the Project and has worked with
APGN and Howden-Roots (existing steam blowers)to ensure that the air and system requirements are
adequate for both systems. The new filter houses will be located at the same location, west of the Pump
and Blower Building. The APGN equipment requires cleaner air as compared to the existing blowers. The
new filter houses will include cartridge style filters that are gasketed and probes for maintenance
monitoring.
Staff is recommending to include the purchase of the filter houses with APGN to avoid any system
performance issues during the Project and to include the units under the terms of the additional contract
warranty. Replacing the filter houses was not included in the blower bid.
ALTERNATIVES/CONSIDERATIONS
Staff considered two alternatives and does not recommend any of the following:
Alternative 1 — I nclude the filter houses as a general contractor item to supply for the Project. To properly
design the filters requires the coordination and the system requirements from APGN. Allowing a general
contractor to bid and possibly select another vendor under a design specification may bring additional risks
and impact the system performance anticipated by APGN.
Alternative 2 — Rehabilitate the existing filter houses, which is more in costs, will complicate the
replacement sequence, and likely require additional time to coordinate the work.
FINANCIAL IMPACTS
The total price for adding three new filter houses is $314,000, which includes vendor engineering, delivery,
taxes, filters, and one set of replacement filters. HDR, I nc. and staff researched the prices for each item
and negotiated the final price. With the addition of the change order, the new contract ceiling will be
$3,312,000.
The change order will be funded from the Electric Blower I mprovements budget listed on page 256 of the
Fiscal Year 2021-22 Budget. No additional budget is required since the cost to rehabilitate the filters were
included in the project estimate.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this matter at the June 8, 2021 meeting and
recommended approval of the subject.
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RECOMMENDED BOARD ACTION
Authorize the General Manager to execute a pre-purchase contract change order i n the amount of
$314,000 with APG-Neuros, Inc. to include three new filter houses for the Electric Blower Improvements,
District Project 100015.
Strategic Plan Tie-In
GOAL TWO: Environmental Stewardship
Strategy 1—Achieve 100% compliance in all regulations
GOAL FOUR: Workforce Development
Strategy 4—Meet or exceed industry safety standards
GOAL FIVE:Infrastructure Reliability
Strategy 3—Protect personnel and assets from threats and emergencies
GOAL SIX: Innovation and Optimization
Strategy 2—Improve and modernize operations through technology and efficiency measures
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