Title
Approval of Services Agreement No. AGR23-42 with Open Access Technology International, Inc., in the amount of $1,731,281.91, plus Applicable Gross Receipts Tax, for the Purpose of Energy Trade Capture and Scheduling Software
Recommended Action
I move that Council approve Services Agreement No. AGR23-42 with Open Access Technology International, Inc., in the amount of $1,656,281.91, and a contingency in the amount of $75,000.00, for a total of $1,731,281.91, plus applicable gross receipts tax, for the purpose of providing an integrated electricity scheduling software solution.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Board approve the motion as presented.
Body
The Incorporated County of Los Alamos (“County”) Department of Public Utilities (“DPU”) requires software that will keep track of energy, transmission, and the dollars associated with the two. Los Alamos County has an agreement with Open Access Technology International, Inc. (“OATI”) for the use of OATI's software for this purpose. With the approaching end of this agreement on August 31, 2023, the County issued Request for Proposals No. 23-42 (“RFP”) on November 15, 2022, requesting proposals for Energy Trade Capture and Scheduling software. Two compliant proposals were received and evaluated using the evaluation factor identified in the RFP, and OATI was selected as the successful offeror.
DPU brings services agreement AGR23-42 for approval by the Board of Public Utilities on June 21, 2023. Following this approval, DPU will bring this services agreement AGR23-42 for approval by the County Council on June 27, 2023. DPU staff recommend that the Board of Public Utilities and the County Council approve agreement AGR23-42 because it provides a necessary integrated scheduling software solution that enables municipal/county electrical load forecasting, pre-scheduling, real time transactions, and “after the fact” reconciliation.
The 15-year term of agreement AGR23-42 begins on July 1, 2023 and continues through June 30, 2038. Fees to be paid by DPU to OATI, as detailed in Exhibit "A" of the agreement, start at $7,000.00 per month during the first year, escalating by 2.5% each year thereafter, finishing at $9,890.82 per month during the fifteenth year. Fees for the 15-year term add up to $1,506,281.91. An additional $150,000.00 is included for optional products, customization, professional services, and training, bringing the subtotal to $1,656,281.91. Finally, an additional $75,000.00 as a contingency, for OATI to maintain older software versions if the need arises, brings the total amount for approval to $1,731,281.91, plus applicable gross receipts taxes.
Alternatives
There are no feasible alternatives because the software functions provided through agreement AGR23-42 are required for DPU to continue meeting its contractual obligations as an electric utility.
Fiscal and Staff Impact
$1,731,281.91, plus applicable gross receipts tax over the next fifteen years. No additional staff impact.
Attachments
A - AGR23-42 Open Access Technology International Inc_FINAL