Title
Approval of Amendment #1 to Task Order No. 1 Under Services Agreement No. AGR17-45 with Alpha Southwest, Inc. in the amount of $12,650.24, for a Revised Task Order Amount of $73,695.24, plus Applicable Gross Receipts Tax, for the Purpose of Chlorine Generator Equipment Acquisition and Installation for Pajarito Booster 2
Recommended Action
I move that the Board of Public Utilities approve Amendment #1 to Task Order No. 1 Under Services Agreement No. AGR17-45 with Alpha Southwest, Inc. in the amount of $12,650.24, for a Revised Task Order Amount of $73,695.24, and a contingency of $5,000.00, for a total of $78,695.24, plus Applicable Gross Receipts Tax, for the Purpose of Chlorine Generator Equipment Acquisition and Installation for Pajarito Booster 2.
Staff Recommendation
Staff recommends that the BPU approve the motion as presented.
Body
The original Task Order that was previously brought before the Board of Public Utilities, and approved by the Board, was inaccurate due to a misunderstanding in the interpretation of the contract between DPU staff and the Contractor (Alpha Southwest). The wording in the contract regarding labor costs led staff to believe that labor was included in the equipment acquisition cost - but after a request by the Contractor and review by Purchasing and Legal, labor (and miscellaneous materials) are additional costs estimated per job over and above the quoted cost for each piece of equipment. Based on this final interpretation the original Task Order amount plus contingency was exceeded by $2,650.24. Staff is requesting this amended Task Order be approved so that we may move forward with the purchase of the first of two new chlorine generating units for the Water Production system.
The scope of this task order 1 is identical to the original scope as detailed in the original Services Agreement (AGR 17-45). The schedule has slide a few months while the contract language was being discussed. We believe we now have an exact estimate for what this work will entail but we are requesting a small $5,000 contingency just in case something comes up in the field during installation that causes some unforeseen costs.
The original agreement is attached for your reference.
Alternatives
DPU could delay the project but that would adversely affect the ability of Water Production to meet its regulatory requirements for maintaining an adequate chlorine reserve in the water systems. The existing equipment is old and has little active life remaining and Water production has already scavenged parts from redundant systems to keep the active system equipment operating.
Fiscal and Staff Impact
Funds are budgeted for this work in the O&M budget. Project Management will be absorbed within the routine functioning of the DPU with personnel from Water Production expected to be involved.
Attachments
A - AGR17-45 Task Order No. 1 Amendment No. 1
B - Services Agreement AGR17-45