Board Memo Engine Maintenance.pdf
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- Solicitation number
- S-X34350-00004391
- Issued by
- Washington County, Oregon
About this file
This is a Board of Directors agenda memo from Clean Water Services, a public utility district in Oregon, approving a sole source contract for engine maintenance services. The District operates two GE Jenbacher JMS316 engine generators at its Durham Water Resource Recovery Facility that generate up to 60 percent of the facility's onsite electrical demand using renewable natural gas, supporting the District's greenhouse gas reduction goals. Western Energy Systems (WES), a Division of Penn Detroit Diesel Allison, LLC, is the sole provider of maintenance services for this specific engine model. The proposed agreement includes scheduled labor and parts replacement for major and minor service intervals, factory-trained technicians for major service events, remote technical support, predictive monitoring, and up to five hours per month of remote expert troubleshooting services at no additional cost. The District requested an eight-year contract term rather than the standard five-year maximum to ensure full utilization of service hours, though the Board approval was specifically sought for this extended term.
The sole source contract with WES is valued at $1,402,569 not to exceed over the life of the agreement, with pricing locked in at a discounted rate and including a 20 percent allowance for price escalations and unscheduled repairs. The District has budgeted $200,000 in Fiscal Year 2022-23 for this service, with additional funds to be requested in subsequent budgets against account 106.000.0000.52495. The sole source justification is based on District Purchasing Rule 15-060, which permits such purchases when only one manufacturer or seller provides the required product or service quality and efficient equipment utilization requires compatible services. This contract follows the District's prior approval on May 23, 2017, of a similar five-year maintenance agreement with WES valued at $854,458, and is related to the District's 2013 approval of WES-supplied cogeneration engine systems in the original facility construction project.
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Text version
AGENDA
CLEAN WATER SERVICES BOARD OF DIRECTORS
Date: September 20, 2022 Agenda Category: Consent
CPO (if applicable) CPO 4M
Approve a Sole Source Contract with Western Energy Systems, a Division of Penn Detroit Diesel Allison, LLC, for Engine Maintenance Services Agenda Title:
Jennifer To, Enterprise Asset & Technical Services Director (po) Presented by:
REQUESTED ACTION
Approve a sole source contract with Western Energy Systems, a Division of Penn Detroit Diesel Allison, LLC, (WES) for engine maintenance services in an amount not to exceed $1,402,569 over the life of the contract.
SUMMARY
Clean Water Services’ (District) operates two GE Jenbacher JMS316 engine generators at the Durham Water Resource Recovery Facility. The Jenbacher engine generators are an important system enabling Durham to produce up to 60 percent of its onsite electrical demand by utilizing renewable natural gas (RNG). The production of electrical power from RNG enables the District to achieve goals associated with reducing greenhouse gas emissions. The facilities are also utilized to reduce the demand on the local electrical grid when there are significant heat events in the service area.
The District would like to enter into a maintenance agreement with WES to lock in discounted pricing for the parts and labor associated with the major and minor service intervals required to maintain each engine and control panel. This agreement provides for factory-trained technicians to perform the major service events and for the parts that District staff will use to perform all minor services. The agreement also provides for remote technical support and predictive monitoring of the engine/generator installation. This agreement will also provide continual remote monitoring and up to five hours per month of remote expert troubleshooting services at no additional charge.
Under District Purchasing Rule 15-060, the Board of Directors (Board) may award a contract for a particular product or service if there is only one manufacturer or seller of the product or service of the quality required, and upon making written findings that efficient utilization of the existing equipment or supplies requires acquisition of compatible equipment or services. These findings apply to this request for a sole source purchase of maintenance services from WES because it is the only entity that provides this service for this generator model. WES has submitted a quote for Silver Services, which includes scheduled labor and parts replacement for a term of up to five years, in the amount of $1,402,569. This includes a 20 percent allowance for price escalations and for unscheduled repairs as required over the term of the agreement.
District Purchasing Rule 10-100 limits the term of the contract to five years without prior Board approval. Because of the nature of this contract it is possible that the total service hours will not be fully expended within five years. District requests that it be allowed to enter into an eight-year agreement to utilize all the service hours.
ADDITIONAL INFORMATION
Community Feedback: N/A
Legal History/Prior Board Action:
• On May 28, 2013, the Board was asked to approve District’s application to designate cogeneration engine systems supplied by WES in the construction contract documents for the Durham Advanced Wastewater Treatment Facility Cogeneration and Brown Grease Receiving Facilities Project No. 6471 in the amount of $3,037,596. This item was removed from the Board agenda for May 18, 2013, under Minute Order 13-37.
• On June 4, 2013, the Board approved District’s application to designate cogeneration engine systems supplied by WES in the construction contract documents for the Durham Advanced Wastewater Treatment Facility Cogeneration and Brown Grease Receiving Facilities Project No. 6471 in the amount of $3,037,596 under Minute Order 13-42.
• On May 23, 2017, the Board approved a sole source contract with WES for Engine Maintenance Services Project No. 6844 for a term of up to five years in an amount not to exceed $854,458 with a one-year option to extend the contract if unused service hours remain under Minute Order 17-28.
Budget Impact: District has $200,000 budgeted in Fiscal Year 2022-23 for this service. Additional funds will be requested in subsequent budgets.
Budget account: 106.000.0000.52495
| September 20, 2022 |
| Consent |
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