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Home My WebLink About03.c. Equipment Contract NTE $1.8 million with Xylem Water Solutions USA, Inc. for Fine Bubble Diffusers and Special Support Services Under Aeration Basins Diffuser Replacement Phase 1; DP 100019Page 1 of 8 Item 3.c. DCENTRALSAN MEETING DATE: MARCH 13, 2023 BOARD OF DIRECTORS POSITION PAPER DRAFT SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN EQUIPMENT CONTRACT I N AN AMOUNT NOT TO EXCEED $1.8 MILLION WITH XYLEM WATER SOLUTIONS USA, INC. FOR FINE BUBBLE DIFFUSERS AND SPECIAL SUPPORT SERVICES UNDER THE AERATION BASINS DIFFUSER REPLACEMENT PHASE 1, DISTRICT PROJECT 100019 SUBMITTED BY: INITIATING DEPARTMENT: WILLIAM GRANT, ASSOCIATE ENGINEER ENGINEERING AND TECHNICAL SERVICES - CAPITAL PROJECTS REVIEWED BY: CRAIG MIZUTANI, SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER DANEA GEMMELL, PROVISIONAL DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE The Board of Directors (Board) authorization is required for contracts above $200,000 in the Capital Improvements Program. BACKGROUND In 2019, Central San initiated a comprehensive asset evaluation of the secondary process facilities at the treatment plant, including its four aeration basins. The diffuser system within the basins was identified as an aging asset that was beyond its remaining useful life. The system was tested by an independent party, and it was determined to have an extremely low efficiency due to routine clogging and leaks. Many of the diffusers have been found with irreversible fouling during routine inspection and maintenance. The Aeration Basins Diffuser Replacement Phase 1, District Project 100019 (Project), has further evaluated the existing diffuser system and associated piping, especially the large underground aeration piping serving the basins. Full replacement of the aeration diffusers is recommended, and staff has concluded that the underground piping has remaining life with no structural defects. The condition assessment has also indicated that the air leaks are likely due to plenum cracks in the concrete and/or coatings. March 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 16 of 43 Page 2 of 8 The Board authorized staff and the project designer, HDR Engineering, Inc. (HDR) to prepare the final design for the four basins and related work on May 6, 2023. Since then, staff has recommended to sequence the replacement work in two project phases. The first project, Phase 1, will consist of two aeration basins, and then Phase 2 will replace the remaining two basins. This sequence allows Operations the flexibility to meet the normal maintenance requirements or other associated improvements anticipated during the project timelines. Due to the seasonal constraints and efforts to complete the project work, replacing the diffusers in a basin is expected to be on a yearly basis. Prior to finalizing the design, staff has decided to select the diffuser equipment to better ensure the design accuracy and for consistency in diffusers or standardization across all four basins, as this Project will be bid in phases. Pre -purchasing the diffuser equipment may alleviate potential construction schedule delays and result in a lower construction cost to Central San allowing for consistent competitive pricing in the future project. The final design should be ready by July of this year, and staff plans to purchase the equipment after the award of the installation contract for the first basin to be retrofitted in 2024. Staff, with the assistance of HDR, prepared the diffuser equipment procurement package which was based on qualifications and low bid pricing. On November 21, 2022, staff advertised a formal public solicitation and bid on PlanetBids and the District's website for fine bubble diffusers and special support services. The Engineer's estimate is $1,500,000. Central San received two bids, $1,537,853 and $1,880,274, on February 7, 2023. A summary of the bidders is shown in Attachment 1. The Capital Projects Division conducted a technical and commercial review of the qualifications and bids, and determined that Xylem Water Solutions USA, Inc. is the lowest responsive and responsible bidder with a bid amount of $1,537,853. ALTERNATIVES/CONSIDERATIONS The Board could consider the following alternatives: Reject bids, which is not recommended. This equipment contract will ensure continuity and costs for the aeration basins improvements and increase reliability and efficiency in the secondary process area in the treatment plant. Staff plans to pre -purchase the equipment; however, an alternative would be to reject bids and include the equipment into the bid for the installation contractor. This alternative doesn't allow Central San to guarantee pricing for Phase 2 or staff would have to obtain the equipment under sole source justification, if possible. The equipment contract allows for the designer and Central San to work together with the vendor to fine-tune a system that would be optimal for the District's maintenance staff and still meet the fabrication or delivery time for the contractor. FINANCIAL IMPACTS The total estimated cost for the equipment and services may reach $1.8 million which includes vendor engineering, installation design assistance, diffuser equipment and material costs, sales tax, delivery, and contract contingency. Up to half of the contract costs, or $900,000 may be used under the Project. The overall contract contingency is roughly $260,000 and will be potentially used for upgrading materials or diffuser equipment changes requested by the District and for cost escalation if, for some reason, the project timelines are postponed. The equipment contract has strict provisions for cost escalation and/or de-escalation. March 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 17 of 43 Page 3 of 8 The equipment contract will be funded by the Aeration Basins Diffuser Replacement, District Project 100019, and has an estimated total budget of $61.3 million. The project can be found on page 255 in the Fiscal Year 2022-23 Budget and includes adequate available funding in the next two fiscal years for the work. COMMITTEE RECOMMENDATION The Engineering & Operations Committee reviewed this matter at its March 13, 2023 meeting and recommended RECOMMENDED BOARD ACTION Staff recommends authorizing the General Manager to execute an equipment contract in an amount not to exceed $1.8 million with Xylem Water Solutions USA, I nc. for fine bubble diffusers and special support services under the Aeration Basins Diffuser Replacement Phase 1, District Project 100019 Strategic Plan re -In GOAL TWO: Environmental Stewardship Strategy 1 - Achieve compliance in all regulations, Strategy 4 - Identify and advance sustainability initiatives, including reducing energy usage and emissions GOAL FIVE: Safety and Security Strategy 2 - Protect Personnel and assets from threats and emergencies GOAL SIX: Infrastructure Reliability Strategy 1 - Manage assets optimally, Strategy 2 - Execute long-term capital renewal and replacement program GOAL SEVEN: Innovation and Agility Strategy 2 - Implement organization -wide optimization ATTACHMENTS: 1. Summary of Bids 2. Presentation March 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 18 of 43 Page 4 of 8 ATTACHMENT 1 REQUEST FOR QUALIFICATIONS AND BID: DIFFUSER SELECTION & PROCUREMENT PACKAGE FOR THE AERATION BASINS DIFFUSER REPLACEMENT PROJECT, DISTRICT PROJECT 100019 SUMMARY OF BIDS PROJECT NO.: N/A NO. OF ADDENDA: 2 DATE/TIME: FEBRUARY 7, 2023/2:00 PM PROJECT NAME: RFQ AND BID: DIFFUSER SELECTION & PROCUREMENT PACKAGE FOR THE AERATION BASINS DIFFUSER REPLACEMENT PROJECT, DISTRICT PROJECT 100019 PROJECT MANAGER: WILLIAM GRANT PROJECT LOCATION: 5019 IMHOFF PLACE. MARTINEZ. CALIFORNIA ENGINEER'S ESTIMATE: $1,500,000 NO. BIDDER BID PRICE 1 Xylem Water Solutions USA, Inc. $1,537,853 Charlotte, NC 28217 2 SSI Aeration, Inc. $1,880,274 Poughkeepsie, NY 12603 BIDS OPENED BY /s/ Katie Young DATE: February 7, 2023 March 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 19 of 43 Page 5 of 8 March 13, 2023 Equipment and Special dw Services Contract under the Aeration Basins Diffuser Replacement, District Project 100019 IMM01ii, Engineering and Operations Committee Meeting William Grant, P.E. Associate Engineer Edgar J. Lopez, P.E. Capital Projects Division Manager Background and Diffuser Contract Drivers In 2019 Central San initiated a comprehensive asset evaluation of the secondary process facilities at the treatment plant, and identified the Diffuser System in the Aeration Basins as an aging asset that is beyond its useful life. Independent testing was performed, and the Diffuser System was found to have extremely low efficiency due to clogging, leaks, and irreversible fouling. A new diffuser system will remedy these issues. The Aeration Project was split into two phases to provide more flexibility in meeting maintenance requirements. Pre -purchasing all diffuser equipment alleviates schedule delays and equipment inconsistencies between the two phases. Furthermore, it allows for consistent competitive pricing. March 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 20 of 43 1 Page 6 of 8 Existing Diffuser System New Diffuser System r r, t Manual Control �^ r•t 1 Valve EL108.0 TOC EL 106.5 March 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 21 of 43 2 Page 7 of 8 Bid Results Engineer's Estimate: $1,500,000 Two (2) bids received Lowest Bidder: Xylem Water Solutions USA, Inc. No. Bidder Total Bid 1 Xylem Water Solutions USA, Inc. $1,537,853 2 SSI Aeration, Inc. $1,880,274 Project Schedule,' Diffuser Contract Award: April 6, 2023_ Finish Aeration Design: by June 2023-— Aeration Project Phase 1: 2023-2025 Aeration Project Phase 2: 2027-2028'� March 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 22 of 43 3 Page 8 of 8 Committee Recommendation Staff recommends approval of the following: Authorize the General Manager to execute an equipment contract with Xylem Water Solutions USA Inc., lowest responsive and responsible bidder, for fine bubble diffusers and special services in the amount not to exceedL $1,800,000, under the Aeration Basins Diffuser Replacement -r Phase 1, District Project 100019. March 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 23 of 43 4