02-17-2012 BPU RPT 05 - Laserfiche WebLink

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W A T E R E N E R G Y l 1 f E RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: February 17, 2012 ITEM NO: 5 SUBJECT. PURCHASE OF SPARE PARTS FOR THE RIVERSIDE ENERGY RESOURCE CENTER CONTROL SYSTEM ISSUE: That the Board of Public Utilities consider approval of the purchase of control system spare parts from General Electric(GE) Packaged Power Inc. in the amount of$237,022. RECOMMENDATION: That the Board of Public Utilities approve the purchase of control system spare parts from GE Packaged Power Inc., of Houston, Texas, in the amount of$237,022 to support the continued reliable operation of the RERC generation facility. BACKGROUND: RERC Units 1 and 2 were commissioned in June 2006. In April 2011, construction of RERC Units 3 and 4 was completed, doubling the capacity of the RERC facility to 200 megawatts of internal generation. The reliable availability of the RERC facility is a critical element in providing reliable electric service to all Riverside customers. Until recently,stocking critical spare parts has not been a major concern since either warranties have been in place or parts from Units 3 and 4 have been on site or in storage for use in emergency situations. Following five years of operating experience(Units 1 and 2) and the quickly approaching warranty expirations(Units 3 and 4), staff conducted an extensive inventory analysis of spare parts to determine if adequate levels of critical components are held in inventory to ensure safe and reliable operations all four turbine units at the RERC facility. Also during this process, staff requested a recommended spare parts list from General Electric,the Original Equipment Manufacturer(OEM). Based on experience with the RERC units,staff selected only the parts that were critical to our specific operational profile or parts that required significant lead times to procure. GE and other parts suppliers were then contacted for competitive pricing relative to parts related to the turbine control system. GE is the OEM and proprietary owner of the software and hardware control systems at RERC. An alternative or aftermarket product is not available for these proprietary parts and in all cases GE provided the lowest pricing for the required components. The three quotes received are summarized in the table below: Company Location Quote Total GE Packaged Power Inc. Houston, Texas $237,022 Didrikson Associates Inc. Lufkin, Texas $319,834 GTC Corporation Ardsle , New York $301,205