Emergency_Determination_for_10_MVA_Mobile_Substation.pdf

City Purchasing Division Frances Rodriguez, Director

110 West Aztec Avenue • Gallup, New Mexico 87301 • phone 505.863.1232 • fax 888.920.0611

Emergency Justification For:

Temporary 10 MVA Mobile Substation Rental and Associated Electrical Support Services

Dated: 12/16/2025

The City of Gallup, New Mexico determined that the following emergency exists. Describe emergency:

The City of Gallup Electric Department experienced a failure at the Sunshine Substation, resulting in the loss of one of the City’s three substations. As a result, the City has been operating its entire electric system on only two remaining substations, Allison and Noe. While service continuity has been maintained through operational adjustments, this operating condition places the electric system in a significantly weakened and unstable state.

This condition creates an elevated risk of widespread outages, particularly as the City approaches winter peak loading conditions expected in January 2026. Without system redundancy, any additional equipment failure, overload condition, or weather-related event could result in extended outages affecting critical municipal facilities, public safety infrastructure, and the general public.

Immediate action is required to stabilize the electric system and restore sufficient capacity and reliability until permanent repairs and commissioning of the replacement Sunshine Substation equipment can be completed.

The existence of the emergency condition creates an immediate and serious need for services, construction or items of tangible personal property that cannot be met through normal procurement methods and the lack of which would seriously threaten:

1. the functioning of government;

2. the preservation or protection of property; or

3. the health or safety of any person.

Contract award details and required statutory information is as follows:

I. Name of Agency & Contact Information:

City of Gallup Frances Rodriguez, CPPB P.O. Box 1270 Gallup, NM 87305 505-863-1334 phone 505-722-5133 fax frodriguez@gallupnm.gov

II. Name of Contractor & Address:

Navajo Tribal Utility Authority PO Box 170 Fort Defiance, Arizona 86504

Amount of prospective contract:

$319,731

Term of prospective contract:

Approximately January 1, 2026 through July 1, 2026, or until permanent Sunshine Substation equipment is energized and the mobile substation is safely removed

III. Please thoroughly list the services (scope of work), construction or items of tangible personal property of the contract:

• Furnish a temporary 10 MVA mobile substation capable of supporting the City’s electrical system

• Coordinate delivery, installation, and electrical integration with the City of Gallup Electric Department and PNM switching operations

• Provide technical support and operational coordination during the rental period

• Support safe removal and demobilization once permanent substation facilities are energized

IV. Provide an explanation for the justification of the procurement including a description of the emergency condition(s) requiring use of emergency procurement and the practicable competition utilized in compliance with NMSA 1978, Section 13-1-127.

The emergency condition was created by an unexpected substation failure that could not have been reasonably anticipated or mitigated within the timeframe required to protect public health and system reliability. Due to the urgency of restoring system stability prior to winter peak demand, normal competitive procurement methods were impracticable.

Upon identification of the emergency, the City contacted neighboring utilities to determine availability of suitable mobile substation resources. The Navajo Tribal Utility Authority (NTUA) was the only entity able to respond within the required timeframe and with equipment compatible with the City’s electrical system.

V. Please describe what measures are being taken to minimize the duration and effect of this particular emergency procurement (for example: is the emergency only in place until a competitive process can be completed, etc.).

This emergency procurement is strictly temporary in nature and is intended only to bridge the gap until permanent Sunshine Substation equipment is installed, tested, and energized.

The City is actively advancing permanent repairs and construction activities to eliminate reliance on the mobile substation as soon as safely possible.

VI. Describe what measures the Agency will take in the future to prevent/mitigate use of an emergency procurement under similar circumstances.

The City of Gallup Electric Department will continue to evaluate system redundancy, asset condition, and contingency planning to reduce reliance on emergency procurements in the future. Lessons learned from this event will be incorporated into capital planning, system hardening strategies, and emergency response protocols to improve resilience and response time.

Procurement as described is hereby declared an Emergency Procurement by the following:

Signature Date

Print Name

Any questions regarding award may be submitted via fax, email, or regular mail using the contact information above (I).

This emergency procurement is per City of Gallup Procurement Code and statutes (NMSA 1978, Section 13-1-127).

Frances Rodriguez, Purchasing Director Date

Chuck Nourse

December 16th, 2025

12/16/2025