06-03-11 BPU RPT 07 - Laserfiche WebLink

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W A D E R E N E R&Y i G F E ri RIVERSIDE PUBLIC UTILITIES Board Memorandum PU81, 1C UTILITIES BOARD OF PUBLIC UTILITIES DATE: June 3, 2011 ITEM NO: 7 SUBJECT: APPROVAL OF SINGLE SOURCE PURCHASE OF SPARE PARTS AND A SERVICE CONTRACT FROM ABB GROUP FOR THE CLEARWATER COGENERATION POWER PLANT ISSUE: That the Board of Public Utilities consider approval of: 1) a single source purchase of spare parts from the ABB Group for the Clearwater Cogeneration Power Plant; and 2) a three-year Service Contract with ABB Group. RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve the issuance of a purchase order for the single source purchase of spare parts from the ABB Group in an amount not to exceed $111,791; and 2. Approve a three-year Service Contract between Riverside and the ABB Group in the amount of $46,701. BACKGROUND: As part of the purchase of the Clearwater Power Plant, an inventory of control system spare parts was taken. The inventory identified numerous critical control system parts that are needed to ensure the continued and consistent availability of the Plant. The control system itself is a proprietary ABB Group (ABS) product and crucial to Clearwater operations as it monitors all major subsystems within the plant, After staff discussions with numerous vendors, it is apparent that the most reliable source for these parts is the Original Equipment Manufacturer (OEM), ABB. In addition to the control system spare parts inventory, an evaluation of the control system firmware and software identified potential enhancements to improve Plant efficiency. Because the control system is a proprietary product of ABB, implementation of the identified enhancements by ABB itself is recommended to ensure optimal performance of the plant. Therefore, staff has negotiated a proposed service contract with ABB to implement the identified enhancements, augment existing staff expertise,and provide troubleshooting and training over the next three years. To confirm that ASS's proposal was reasonable and appropriate, staff contacted another generation facility that utilizes ABB control systems and verified that the specific parts and proposed dollar amounts were proportionately similar to the other facility.Additionally, Pro Energy,a highly reputable power plant operations firm, reviewed ABB's proposal and recommended both the service contract and spare parts procurement as proactive measures that would help ensure Plant availability.