Adobe Creek Transformer-21; 15 MVA LTC Replacement & Radiator Flange Repair/Regasket

The City of Palo Alto Utilities Department is issuing an Invitation for Bids (IFB) for the repair and refurbishment of a 15 MVA Allis Chalmers substation transformer (Adobe Creek Transformer-21) located in Santa Clara County, California. The procurement involves the complete replacement of an existing 1967 TLH-21 on-load tap changer (OLTC) with a certified remanufactured unit, comprehensive oil handling and processing for approximately 4,348 gallons from the main tank and 760 gallons from the OLTC tank, replacement of radiator valves and gaskets, removal and replacement of the 60 kV SMD fuse holder, and execution of extensive pre- and post-work diagnostic testing including power factor testing, TTR (turns ratio) testing, excitation testing, winding resistance measurement, SFRA (sweep frequency response analysis), DGA (dissolved gas analysis), and oil quality analysis. The contractor must drain the main tank oil into a contractor-provided holding tanker for later reuse while ensuring proper resealing of all interfaces to eliminate oil migration, and must provide all labor, equipment, materials, and transportation necessary to complete the work. The primary objectives are to restore full mechanical functionality and dielectric reliability of the transformer system, prevent further degradation, and extend the operational service life of this critical distribution asset. Contractors must demonstrate demonstrated expertise in OLTC replacement, transformer oil processing, and high-voltage diagnostic testing. Proposals must be submitted electronically through the City's procurement portal by 3:00 p.m. on April 9, 2026, with questions and clarifications due by 1:00 p.m. on March 30, 2026. Work is anticipated to commence on or about July 1, 2026, with completion required within eighty (80) calendar days from the Notice to Proceed, subject to liquidated damages of five hundred dollars ($500) per day for unexcused delays beyond the contract completion date. The City will award the contract to the lowest responsive and responsible bidder based on demonstrated ability, experience, capacity, equipment, resources, and satisfactory performance record.

Contractors must be registered with the California Department of Industrial Relations (DIR) to perform public work and must comply with prevailing wage requirements under California Labor Code Sections 1720 et seq., and no specific contractor license type is mandated, though valid California licensing is required. Bidders must submit a Bid Bond of not less than ten percent (10%) of the aggregate bid amount for bids exceeding $25,000, and the selected contractor must furnish Performance and Payment Surety Bonds in the amount of 100% of the Contract Sum within ten (10) business days of award. The contract documents do not identify any incumbent vendors or set-asides for disadvantaged enterprises, though the procurement is subject to standard public works compliance requirements. The City of Palo Alto Utilities will be responsible for de-energizing, disconnecting, isolating, and grounding the transformer prior to work commencement and disposing of any transformer oil not intended for reuse, providing existing infrastructure support to the selected contractor. While specific budget or award values are not disclosed in the procurement documents, contractors should anticipate that the contract sum will include all labor, materials, equipment, prevailing wage costs, bonds, insurance, taxes, and overhead necessary for complete project delivery. The contract is governed by California law with venue in Santa Clara County, and disputes shall be resolved through a Contract Dispute Resolution Process including claims submission, meet and confer, mediation, and binding arbitration.