Item Coversheet
City of Independence

Agenda Title:

Council action to award a purchase order to Solomon Corporation, in the amount of $907,730.00, for the rebuild of two transformers at Substation E for the Power & Light Department.

Council action to issue a purchase order.

Substation E is located at 35th and Northern in Independence, Missouri. It is a 69/13 kV distribution substation built in 1974. It services power to surrounding commercial and residential customers with two (2) 20 MVA transformers, via six (6) distribution feeders. The rebuild of this substation is in the capital budget as project 7020-5406-1714 project string C-201804, with expenditures spread out from 2019 through 2022. The rebuild is warranted due a failure of transformer T2 in November of 2017, combined with the age and condition of the switchgear. Transformer T1 is identical to T2 made by the same manufacturer and the two are one serial number apart.

A multidiscipline study was conducted post failure of T2 and it was determined that repair of the failed unit was not a viable option and that total rebuild was favorable to purchasing new transformers. Total rebuild will save over $200,000 up front cost per transformer and the rebuild units have a 5 year warranty. Substation F transformers were totally rebuilt, and they are in service and performing to our standards. The supposition is that since Sub E is so similar to Sub F the same process would be economical and technically sound.

An Invitation to Bid (ITB) for Substation E Transformer Rebuilds was issued on March 28, 2019. The ITB was published on the City’s website through Public Purchase, the City’s e-solicitation system, which notified 37 potential bidders of the solicitation; 28 accessed the Invitation to Bid.

Two (2) bids were received in response to this solicitation: OTC Services and Solomon Corporation. Solomon was the lowest most responsive and responsible bidder and is recommended for award. The bid tabulation is attached.

The rebuilding of transformers is a very specialized service. IPL staff knows of three companies that provide this service in the Midwest and all three were notified of this solicitation. One company was not able to fit the IPL project into their workload.

Approval of this item authorizes the Purchasing Manager to issue change orders up to ten (10) percent of the original authorized amount, providing appropriations are available.

Fiscal Impact:

Bid No.: 19035
IPL Fund: 00020
Acct. No. 7020-5406-1714, Project String C-201804
Amount: 907,730.00

Department:          Power & LightContact Person:          Brenda Hampton

Purchasing Division (Finance Department)Approved
Power and Light DepartmentApproved
Finance DepartmentApproved
Law DepartmentApproved
City Managers OfficeApproved
City Clerk DepartmentApproved

Council Action:          Council Action:          Accepted

Bid TabulationBackup Material
MapBackup Material