Title
Purchase and Installation of CNG Compressors - Contract Recommendation (Ordinance S-45388)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Zeit Energy, LLC to provide the City with new Compressed Natural Gas (CNG) compressors as well as install the new compressors. The total estimated aggregate amount for this contract is $682,000 for the initial two-year period. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Public Works Department has four CNG fuel sites that are used by the Solid Waste refuse fleet. Each of the four sites has two CNG compressors and includes redundancy to enhance the compressor run hours. This is done to keep both machine hours balanced with the availability of having a backup compressor in the event of a catastrophic failure. Because a large portion of the refuse fleet is powered by CNG engines, it is essential to have a contract in place to allow for the ability to quickly replace a compressor that has failed with minimum down time as it can take up to 60 days from order date to delivery.
Procurement Information
Invitation for Bid (IFB) 19-FSD-033 was conducted in accordance with Administrative Regulation 3.10. The Public Works Department, Procurement Section, received two responsive and responsible bids from one vendor. Zeit Energy provided both bids, which allowed for alternative options within the bid submittal, with the following project cost per service center:
Glenrosa: $384,944
Okemah: $351,918
Salt River: $351,918
Union Hills: $351,918
Contract Term
The initial one-year contract term shall begin on or about March 1, 2019, with four option years to be exercised in increments of up to one year, with a total contract option term of five years.
Financial Impact
This contract will have an initial two year estimated expenditure of $682,000. Funds are available in the Public Works Department's Capital Improvement Program.
Location
Locations that may require CNG compressor replacements include:
Glenrosa Service Center: 4021 W. Glenrosa Ave., Phoenix, District 5
Okemah Service Center: 3828 E. Anne St., Phoenix, District 8
Salt River Service Center: 3045 S. 22nd Ave., Phoenix, District 7
Union Hills Service Center: 138 E. Union Hills Drive, Phoenix, District 2
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.