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W A T E R E N E R G Y L t:. <br />RIVERSIDE PUBLIC UTILITIES <br />hFmid ldk Board Memorandum <br />PUBLIC UTILITIES <br />BOARD OF PUBLIC UTILITIES DATE: September 5, 2014 <br />ITEM NO: 3 <br />SUBJECT: AWARD OF BID NO. 7261 TO PURCHASE SUBSTATION TEST EQUIPMENT - <br />WORK ORDER NO. 1425389 <br />ISSUES: <br />The items for Board of Public Utilities consideration are: 1) award of Bid No. 7261 to purchase substation <br />test equipment; and 2) approval of Work Order No. 1425389 in the amount of $296,373.60. <br />RECOMMENDATIONS: <br />That the Board of Public Utilities: <br />Award of Bid No. 7261 in the amount of $296,373.60 to OneSource Distributors, of Oceanside, <br />California, for the purchase of substation test equipment; and <br />2. Approve Work Order No. 1425389 in the amount $296,373.60 for the procurement of substation <br />test equipment. <br />BACKGROUND: <br />The electric system is highly dependent on the safe and reliable operation of substation equipment. As <br />such, and in conformance with Riverside Public Utilities (RPU) standards and North American Electric <br />Reliability Corporation (NERC) regulatory requirements, on -site field testing is performed by substation <br />test technicians when commissioning new installations, assessing the condition of existing equipment, <br />and locating the source of equipment failures. In addition, the data is used to make informed <br />engineering and business decisions regarding the optimization of maintenance and capital resources. <br />Recent equipment failures at Harvey Lynn and Hunter Substations underscored the need to upgrade <br />RPU's substation testing capabilities. Staff initially identified 18 pieces of test equipment for <br />consideration. These included equipment to test transformers, breakers, relays, batteries, metering <br />equipment, cables, and grounds. After receiving bids, staff completed a cost - benefit analysis of the <br />individual components and determined that the procurement of 13 of the 18 pieces of equipment would <br />be cost effective at this time. The elimination of five components reduced the total cost from <br />$555,657.84 to $296,373.60. <br />The test equipment selected provides important new and enhanced capabilities to manage this vital <br />infrastructure and maintain regulatory compliance. This set of equipment reduces the need to rent <br />equipment or retain contract testing services to only those occasions where it is effective to do so. <br />Bid No. 7261 was posted on June 18, 2014 and the results were received and opened on June 24, 2014: <br />Bidder <br />Bid Results <br />(Including taxes) <br />Modified Order <br />Bid Evaluation <br />Ranking <br />(Including taxes) <br />OneSource Distributors, Oceanside <br />$555,657.84 <br />$296,373.60 <br />Lowest responsive and <br />responsible bidder <br />Royal Wholesale Electric, Riverside <br />$587,157.60 <br />$316,615.04 <br />2 <br />Wesco, Buena Park <br />$6341127.11 <br />$322,128.46 <br />3 <br />Power Up Controls, Garden Grove <br />No bid <br />No bid <br />No bid <br />Engineer's Estimate $570,000 <br />