5.3 ERMUSR 04-09-2024Ji
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Chris Kerzman — Engineering Manager
MEETING DATE:
AGENDA ITEM NUMBER:
April 9, 2024
5.3
SUBJECT:
Award of Recloser Bid
ACTION REQUESTED:
Adopt Resolution 24-6 Accepting Border States bid for 26 substation reclosers and awarding
contract.
BACKGROUND:
ERMU has been replacing existing mineral oil filled substation reclosers with solid dielectric
insulation reclosers as existing oil filled equipment has aged. Staff solicited bids for replacement
of remaining oil filled reclosers, as well as spare units and others for anticipated additions.
Staff's desire to expedite the replacement of the oil filled equipment would standardize
inventory, reduce maintenance associated with oil filled equipment, and is based on recent
experience with oil filled equipment failing manufacturer testing guidelines during preventative
maintenance. Solid dielectric insulation reclosers require little to no maintenance over the life
of the equipment. Additionally, removal of oil filled reclosers would bring the recloser
equipment up to current manufacturing standards. Staff advertised for bids on March 9, 2024,
with bids opened on April 2, 2024. Two bids were received, with total costs ranging from
$507,910.00 to $852,827.82.
DISCUSSION:
After evaluating the bids, it was determined the low bidder, WESCO's bid for ABB OVR
reclosers, was not in conformance with the specifications due to non -compatibility with ERMU's
existing controllers. Compatibility with existing controllers was a requirement in the original
specifications and was reaffirmed in response to a clarifying question in Addendum 1.
The other bidder, Border States' Eaton NOVA Recloser, incorrectly included a vendor -supplied
controller in their pricing even though the specifications clearly stated the controller was
provided by the owner (ERMU). Border States' bid package, however, included a quote sheet
documenting the line -item pricing for the recloser separate from the controller. After
conferring with legal counsel, staff recommends evaluating Border States' bid based on their
line -item price for just the recloser (not including the controller), which would still allow
comparison with any other responsive bidders as to that item, and since the bid specifications
clearly state the controller is provided by the owner. When including only the line items that
are in the specifications, Border States' bid amount for 26 reclosers is $565,576.44.
Page 1 of 2
FINANCIAL IMPACT:
The bid documents also included optional adders for mounting stands at $561.50 each and
adapters brackets at $240.64 each. Staff recommends award to Border States for 26 substation
reclosers, 5 substation frames, and 21 adapter brackets for a total of $573,437.38.
Delivery for this contract would be in 2025. Once received, the reclosers would be inventoried
and assigned against projects listed in the upcoming years of the 20-year capital project plan.
ATTACHMENT:
• Substation Feeder Recloser Bid Tabulation
• Resolution 24-6 Awarding Substation Feeder Recloser Contract
Page 2 of 2
Bid Tabulation
Elk River Municipal Utilities 2024 (26) Substation Feeder Reclosers
Bid Opening: Tuesday April2, 20242:00 PM
Description:
Border States
Wesco
11927 53rd St. N E
2650 7th Ave. N.
Albertville, MN 55301
Fargo, ND 58102
26 Three Phase
Mechanically
Ganged Reclosures
Manufacture:
Eaton
ABB
Model:
Nova
OVR
Unit Price:
$32,801.57
$19,535.00
Extended Price:
$852,827.82
$507,910.00
Delivery Date:
45 Weeks
18 Weeks
Unit Price for
Mounting
Equipment:
Mounting Stand:
$561.50
-
Adapter Brackets:
$240.64
-
5% Bid Bond
Notarized
Yes
Yes
Yes
Yes
Anndenum #1
Acknowledged:
Yes
No
Evaluated Unit Price:
Evaluated Extended Price:
$21,752.94
$19,535.00
$565,576.44
$507,910.00
Notes:
Included controller pricing of
$ 11,048.13 specified to be owner
provided (removed for evaluated
price)
Noted compatibility only with ABB
RER615 controller or SEL 751
controller
Not compatible with specified
controllers or 14 pin control cable
No option for adapter brackets
:a
RESOLUTION NO. 24-6
BOARD OF COMMISSIONERS
ELK RIVER MUNICIPAL UTILITIES
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF ELK RIVER MUNICIPAL
UTILITIES AWARDING CONTRACT FOR THE PURCHASE OF SUBSTATION RECLOSERS
WHEREAS, Elk River Municipal Utilities (ERMU) has developed plans, specifications and
bid documents for the purchase of twenty-six (26) substation reclosers; and
WHEREAS, on March 9t", 2024 ERMU advertised for bids for twenty-six (26) substation
reclosers; and
WHEREAS, the bid advertisement sought bids for substation reclosers but not
controllers; and
WHEREAS, bids were received, opened, and tabulated according to law on April 2, 2024;
and
WHEREAS, a total of 2 bids were received for the project as follows:
WESCO's ABB OVR ("Wesco") bid for twenty-six (26) reclosers was $507,910.00;
and Border States' Eaton NOVA ("Border State") bid for twenty-six (26) reclosers
was $565,576.44; and
WHEREAS, both bidders are deemed to be responsible bidders; and
WHEREAS, WESCO's bid materially deviated from the plans and specifications in the bid
advertisement as it provided a recloser that is not compatible with ERMU's existing
controllers as required by the specifications and not in conformity with the provided
specifications, and is, therefore, not a responsive bid; and
WHEREAS, Border States' bid included an extraneous quote for a controller, which was
not requested in ERMU's specifications; and
WHEREAS, ERMU does find that Border States' deviation is not material as the
controller quote is separate from the recloser quote and ERMU shall award the contract
solely on the basis of the recloser bid; and
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WHEREAS, Border States is the lowest responsible and responsive contractor based on
the scope of the project as advertised by ERMU; and
WHEREAS, Border States bid also listed optional adders as requested in the
specifications for mounting stands at $561.50 each and adapters brackets at $240.64
each; and
WHEREAS, ERMU desires to purchase five (5) substation frames and twenty-one (21)
adapter brackets in addition to the twenty-six (26) reclosures;
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE BOARD OF COMMISSIONERS OF
ELK RIVER MUNICIPAL UTILITIES, BASED UPON THE FOREGOING RECITALS
INCORPORATED HEREIN, AS FOLLOWS:
1. WESCO's bid materially deviated from the plans and specifications in the bid
advertisement as it provided a type of recloser that is not compatible with
the Utility's existing controllers and not inconformity with the provided
specifications. WESCO's bid is not responsive and is rejected.
2. That the contract to the recommended lowest responsible and responsive
bidder, Border States, is awarded in the amount of $573,437.38 for the
purchase twenty-six (26) substation reclosers, five (5) substation frames, and
twenty-one (21) adapter brackets.
3. The Commission Chairperson and General Manager are hereby authorized
and directed to enter into a formal contract with Border States for the
project according to the plans and specifications on file in the Elk River
Municipal Utility's offices.
This Resolution Passed and Adopted this 9t" day of April, 2024.
John J. Dietz, Chair
Mark Hanson, General Manager
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