Title
Centrifuge Equipment Maintenance Contract (Ordinance S-44765)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with GEA Mechanical Equipment US, Inc. (GEA) to provide parts and maintenance for the Westfalia CA-1036 and CA-755 centrifuges for the Water Services Department. Expenditures are not to exceed $10,500,000 over the life of the contract. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Water Services Department has five centrifuges at the 91st Avenue Wastewater Treatment Plant that are critical for removal of solids and sludge during the wastewater treatment process. This equipment requires regular maintenance, and repair and/or replacement parts to remain in service. This contract covers maintenance and parts for the remaining life of the equipment.
Procurement Information
Under the City Code section 43-11(D) and the City’s Administrative Regulation 3.10, the competitive procurement was waived via a Determination Memo citing GEA is the sole source provider for its goods and services, and does not certify other vendors to supply parts or perform maintenance.
The Water Services Department requests a waiver from Phoenix City Code section 42-18(B). GEA seeks to limit the City’s rights to obtain legal redress, damages, or other compensation in the contract. If the City Council approves this waiver, the City's sole remedy for breach would be contract cancellation.
The Water Services Department also requests a waiver from Phoenix City Code section 42-18(C). GEA seeks to restrict the standard indemnification terms. GEA will only agree to defend and indemnify the City for liability arising out of GEA's sole negligent or willful acts. If the City Council approves this waiver, allegations of wrongdoing against the City or a third party will require the City to defend and resolve any litigation itself.
Contract Term
The contract term will be for five years with one two-year option to extend, effective July 1, 2018, through June 30, 2025.
Financial Impact
Expenditures are not to exceed $10,500,000 over the life of the contract. Funding for the contract is available in the Water Services Department's operating budget.
Location
91st Avenue Wastewater Treatment Plant, 5615 S. 91st Ave.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.