The Water Department will use this Agreement to purchase original equipment directly from the manufacturer, Dresser, Inc., and maintain existing equipment in operation at Village Creek Wastewater Treatment Plant.
The OIB Centrifugal compressor model is the main component used at the plant to pump air through the aeration basins and maintain continuous airflow throughout this treatment process as pollutants are removed from the City's water channels.
Village Creek Wastewater Treatment Plant operates six centrifugal blowers on a continuous basis to meet the air quality requirement under the guidelines of the Texas Commission of Environmental Quality (TCEQ).
Should one of the blowers experience mechanical failure and remain out of service for an extended period of time, the City would be in violation of the discharge permit and subject to penalty under the state environmental regulations.
Dresser, Inc., is the documented sole source manufacturer for Dresser Roots OIB Centrifugal compressor, blowers, replacement parts and repair service.
No guarantee was made that a specific amount of goods or service would be purchased. During the previous year, approximately $75,179.00 was spent. The Water Department anticipates spending up to $100,000.00, per year under this requested Agreement.
ADMINISTRATIVE INCREASE - An administrative increase or change order for this purchasing Agreement may be made by the City Manager or his designee in the amount up to $25,000.00 and does not require specific City Council approval so long as sufficient funds have been appropriated.
PRICE ANALYSIS- The new hourly service rates and overtime service rates that are offered by Dresser, Inc., have increased nine percent to 14 percent from the previous rates approved by the City Council on June 23, 2009 (M&C P-10992). M/SBE - A waiver of the goal for M/SBE subcontracting requirements was requested by the Purchasing Division and approved by the M/SBE Office because the purchase of goods and services is from sources where subcontracting or supplier opportunities are negligible.
AGREEMENT TERMS - Upon City Council's approval, this Agreement will begin on August 8, 2012 and expire on August 7, 2013 respectively.
RENEWAL OPTIONS - This Agreement may be renewed for up to four additional one-year terms at the City's option. This action does not require specific City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal term. Staff anticipates that the costs for the renewal years will be the same as the first year. |
