Title
Approval of Services Agreement No. AGR17-914 with Alpha Southwest, Inc. in the amount of $150,114.00 plus Applicable Gross Receipts Tax, For the Purpose of Inspection, Repair, and Ancillary Services on all County Well Pumps.
Recommended Action
I move that the Board of Public Utilities approve Services Agreement No. AGR17-914 with Alpha Southwest, Inc. in the amount of $150,114.00 plus applicable gross receipts tax, for the purpose of Inspection, Repair, and Ancillary Services on all County Well Pumps.
Staff Recommendation
Staff recommends approval of the agreement per the motion as presented.
Body
The DPU is occasionally in need of services for inspection, repair and ancillary activities for our well and booster station pumps. The Water Production budget includes funds to cover the average estimated costs for these types of services. Some years no work is required on any of our major facility pumps or motors. Some years multiple facilities require servicing. This year, so far, the pump in Pajarito Well # 4 has failed. We need to pull this pump, troubleshoot it, repair it and return it to service. Alpha Southwest has a good history of providing these services to the DPU.
Our water production well system has enough source capacity to maintain adequate service to our customers during this temporary PW-4 well outage. The relatively wet summer season has again reduced water demand throughout the system and no water volume problems have, or are likely to, occur this year. However, we have historically operated PW-4 during the summer irrigation season because this well is powered by a natural gas engine, in lieu of electric power, and the cost of water production when we use this well is typically significantly lower than using the other water source wells. So, this summer, while we did not pump as much water as we historically have during the irrigation season, the water we did pump had a higher than usual production cost due to the fact that PW-4 was out of service.
The proposed agreement between Alpha Southwest and the DPU is a piggybacking off of the Albuquerque/Bernalillo County Water Utility Authority Contract # RFP 2013000021. This contract between ABCWUA and Alpha Southwest is for the same services as required by the DPU. This ABCWUA contract was competitively bid through the public procurement process when it was established. In utilizing this piggyback approach the DPU saves time and administrative effort while securing good prices for these services.
Alternatives
The alternative approach to piggy backing off of the Albuquerque/Bernalillo County Water Utility Authority Contract for these services would be for the DPU to competitively bid this as a separate service contract. This would add significantly to the length of time required to acquire these services and would, in all likelihood, not provide for any lesser estimated costs - since the ABCWUA contract is for a higher quantity of work and was also competitively bid when it was initiated.
Fiscal and Staff Impact
Agreement amount Not to Exceed $150,114.00. Estimated amount for PW 4 well pump is $70,114 leaving $80,000 remaining in the contract for services on other pumps.
Attachments
A - Agreement No. AGR17-914