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W A T E R E N E R C Y I WI& P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: AUGUST 7, 2015 ITEM NO: 5 File ID — 15 -2455 — C SUBJECT: AWARD OF A PURCHASE ORDER TO CROWN TECHNICAL SYSTEMS FOR THE LINE PROTECTION RELAY REPLACEMENT AND SUBSTATION AUTOMATION SYSTEM PROJECT FOR $97,629 — WORK ORDER NO. 1311245 ISSUE: The issue for Board of Public Utilities consideration is award of a purchase order to Crown Technical Systems for system protection relay and automation panels. RECOMMENDATION: That the Board of Public Utilities award a purchase order for $97,629 to Crown Technical Systems of Ontario, California for relay and substation automation panels in addition to miscellaneous material for the Line Protection Relay Replacement and Substation Automation System Project. BACKGROUND: The Electric System Master Plan recommends replacing all electromechanical relays in Riverside Public Utilities' (RPU) transmission and distribution system with microprocessor -based relays. Board of Public Utilities approved the Line Protection Relay Replacement and Substation Automation System Project in the amount of $1,925,805 (Work Order 1311245) at its meeting on March 21, 2014. The scope of the work includes replacing electromechanical line protection relays with microprocessor - based relays for nine sub - transmission lines at multiple substations. This procurement includes the purchase of system protection relays and automation panels, in addition to spare parts, for Orangecrest Substation. The purchase of the equipment and material is covered under Section 602 of Purchasing Resolution No. 22576. Section 602 specifies specialized equipment that is particular to the needs of RPU and provides for acquisition by Open Market Procurement if it appears to the Purchasing Services Manager to be in the best interest of the City of Riverside (City). Open Market Procurement allows the City to issue requests for quotations instead of bids, meaning that the City can select based upon qualifications and pricing, not just low bid. The Purchasing Manager has made such a determination in this case. Four vendors were invited to submit proposals through Open Market Procurement. Only one proposal was received as three of the vendors refused to accept the City's terms and conditions. Crown Technical Systems (Crown) did take exception to the liquidated damages provision, but proposed revised language which was accepted by the City. Crown provided a complete proposal meeting the remaining commercial and technical terms and conditions per RPU specification No. SUB -780. Crown previously provided similar equipment at a fair price, and met RPU's technical requirements and quality standards. The quoted price for this procurement is fair as it is within the engineer's estimate. Crown was the lowest evaluated bidder. Staff and the Purchasing Services Manager concluded the Crown proposal to be in the best interest to the City.