Loading...
HomeMy WebLinkAboutSole Source Agreement with Andritz Separation, Inc. for D5L High Solid Decanter CentrifugeMayor Tammy de Weerd TO: Maym~ Tammy de Weerd Members of the City Council FROM: Tracy Crane, Wastewater Division Superintendent Laurelei Ball, Assistant Superintendent 6ily Couneil Member6r Keith Bird Brad Hoaglun Charles Rountree David Zaremba DATE: Apri13, 2013 SUBJECT: SOLE SOURCE FORM WITH ANDRITZ SEPARATION INC. FOR THE PURCHASE OF DSL HIGH SOLID DECANTER CENTRIFUGE FOR A NOT-TO-EXCEED AMOUNT OF $214,355.00 I. RECOMMENDED ACTION A. Move to: 1. Approve the Sole Source Fonn for the purchase of an Andritz Separation Inc. DSL High Solids Decanter Centrifuge in an amount not to exceed $214,355.00 II. DEPARTMENT CONTACT PERSONS Tracy Crane, Wastewater Superintendent 409-9891 Laurelei Ball, Assistant Superintendent 888-2191 Tom Barry, Director of Public Works 489-0372 III. DESCRIPTION A. Background The Wastewater Division has two Andritz centrifuges located at the west end of the treatment facility in the bio-solids dewatering building. The bio-solids that are treated via anaerobic digestion in the solids stream treatrent train are dewatered using our high speed centrifuges prior to disposal. Centrifugal thickening and dewatering is a high speed process that uses the force from rapid rotation of a cylindrical bowl to separate wastewater solids from liquid (U.S. EPA, 1987). Dewatering removes water and produces a drier material referred to as "cake". Page 1 of 4 Centrifuge #2 has been damaged due to struvite formation. To repair the damaged unit would cost more than 50% of the price of a new unit. If repaired, the repaired unit would come with no warranty and would still have over 15,000 hours of use on many of its parts. Additionally, if repaired, there would be a substantial turnaround time on the unit that would increase the risk of having no centrifugal redundancy for a prolonged period of time (upwards of 6 months). Considering repair costs, logistics, and turn-around time it is our recormnendation to buy a new direct replacement for the damaged centrifuge. B. Proposed Project The proposed project will provide the replacement of a damaged centrifuge that is essential to the operation of our sludge de-watering process. A new unit would be available within two weeks, include a one year wan~anty, have all new parts, and have an increased overall life span. This purchase would limit the time in which only one centrifuge would be available for operation. Once the purchase is authorized the new unit can be delivered within two weeks and installed in a couple of days, which would minimize the risk of being unable to de-water sludge in the event of a failure of centrifuge #1. IV. IMPACT A. Strategic hn~: This purchase supports the Public Works mission and vision to anticipate, plan and provide exemplary public services and facilities that support the needs of our growing community in an efficient, customer focused and financially responsible manner. The replacement of the centrifuge provides equipment for the de- watering of digested sludge and compliance with federal bio-solids regulations. B. Service/Delivery hn~: The location and extent of the damage to the centrifuge makes catastrophic failure likely due to the high speed rotational forces during operation. If this request is not funded, one of our two centrifuges will be rendered inoperable. This will eliminate redundancy in the system and make centrifuge #1 the only operational unit. This will make preventative maintenance inspections, work, and temporary shut downs difficult. Additionally if the sole remaining centrifuge also experiences a failure, alternative methods of dewatering will need to be implemented immediately to accommodate the 50,000 plus gallons of digested sludge that must be processed on a daily basis. Alternative temporary methods of dewatering will add a significant operational cost to the City, (approximately $9,000 every three weeks). Page 2 of 4 C. PiscalIm~: The proposed budget amendment would be fimded by the ending fund balance of the Enterprise Fund and would represent a net increase to the FY13 Wastewater Division budget. This request provides funding for the sole source replacement of the damaged centrifuge. Protect Costs Andritz DSL centrifuge $ 209,855.00 Factory installation and alignment $ 4,500.00 Total $ 214,355.00 V. ALTERNATIVES In lieu of replacing the centrifuge with a new unit, the Council could chose to authorize the repair of the damaged centrifuge. The fiscal impact for this option is approximately $137,000. This price could increase substantially if additional damage is found during the repair. This option would involve shipping the entire cenhifuge via semi-truck to West Virginia to the Andritz repair facility where the damaged components would be repaired and re-balanced on a high speed balance and then shipped back to Meridian. This option, including hansit time, would take approximately 5-6 months. Because we would not have redundancy at the facility during those months, the City would be subjected to increased risk and would need to rent or purchase temporary de-watering equipment adding to the overall cost of this option. Repair of the unit would include replacerent of the damaged corponents; however, the rest of the major parts on the machine would continue to have over 15,000 hours of use. We do not recommend this option due to the high cost, long turnaround time, and overall increased risk to the City. The repair is more than 50% of the cost of a new unit. The repaired unit would come with no warranty and would still have over 15,000 hours of use on many of its parts. There is a substantial turnaround time on the repair option that would increase the risk of having no redundancy for a prolonged period of time. VI. TIME C®NSTRAINTS Council's approval will allow the Wastewater Division to move forward with the replacement of the damaged centrifuge. Acquisition of this specialized equipment will ensure our ability to continue to effectively dewater the 55,000 gallons of digested sludge that are produced on a daily basis. With only one centrifuge that is operational, our dewatering system remains vuhrerable. There is a complete unit that is currently ready to be shipped that can be secured for the City within two weeks. If we chose to defer this replacement, the lead time could increase dramatically to a several month lead time to allow for the production and shipment of a new unit from the production facility in France. Page 3 of 4 VII. LIST OF ATTACHMENTS A. Sole Source Form for the purchase of a Andritz High Solids Decanter Centrifuge _.,~ ~~ _ Approved for Council Ager~a`: ~' h _ ,~ ~ '' f ~ `'~ Date Page 4 of 4 ~~E IDIAN:--- CITY OF MERI®IAN SOLE SOURCE FORM Date: 4-2-2013 PURCHASING AGENT 33 East Broadway Avenue Meridian, ID 83642 Phone:208-888-4433 Fax: 208-887-4813 Item or Service: Andritz D5L High Solids Decanter Centrifuge X Sole Source: Item is available from only one vendor. Item is one-of-a kind item and is not sold through distributors. Manufacturer is a sole distributor. Refer to instructions on 2nd page for completion. JUSTIFICATION: The two centrifuges installed in our dewatering process are Andritz Separation Inc. D-5 L decanters. These centrifuges were chosen during the design of our dewatering facilities. The dewatering building and appurtenances Dave been designed and constructed with these specific brand and model of centrifuges as design parameters. This is a replacement mechanical decanter that would utilize existing motors, polymer delivery system, and PLC controls to help minimize costs. These centrifuge components are part of the Andritz package. Incorporation of another manufacturer's unit would require that the entire centrifuge system would need to be replaced at considerable cost. A direct replacement is our recommendation, as it will allow the continued use of non-damaged components of our system while maintaining the standardization of our dewatering equipment currently in place. CERTIFICATION: I am aware of the requirements sef forth in the City's Purchasing Policy & Procedures Manual for competitive bidding and the established criteria forjustification for sole source/sole brand purchasing. I have gathered Technical information and have made a concerted effort to review comparable/equal equipment. I hereby certify as to the validity of the information and feel confident that this justification for sole source/sole brand meets the City's criteria and is accurate. Tracy Crane Requestor (Print..Name) ,____- s.~---- . Council Approval Date: Purchasing Approval: Departm~'nt'IVlanager Sig ature Purchasing Manager SOLE SOURCE/BRAND EXAMPLES. SOLE SOURCE: Only one (1) vendor if there is only one (1) vendor for the personal property to be acquired. For purposes of this definition, only one (1) vendor shall refer to situations where there is only one (1) source reasonably available and shall include, but not be limited to, the following situations: (i) Where property is required to respond to alife-threatening situation or a situation which is immediately detrimental to the public welfare or property; (ii) Where the compatibility of equipment, components, accessories, computer software, replacement parts or service is the paramount consideration; (iii) Where a sole supplier's item is needed for trial use or testing; (iv) The purchase of mass-produced movies, videos, books or other copyrighted materials; (v) The purchase of property for which it is determined there is no functional equivalent; (vi) The purchase of public utility services; (vii) The purchase of products, merchandise or trademarked goods for resale at a political subdivision facility; or (viii) Where competitive solicitation is impractical, disadvantageous or unreasonable under the circumstances. THE FOLLOWING ARE NOT REASONS FOR SOLE SOURCE a) Personal preference for a product or vendor. b) Cost, past performance, local presence, delivery etc. These are award criteria to be used in a competitive bid process. c) Specifications that exceed requested performance.