HomeMy WebLinkAboutA017 - Resolution awarding contract to WESCO, of Des Moines, IA, for the purchase of single and three-phase pad mounted transformers in the amount of $313,701.53ITEM #:20
DATE:09-23-25
DEPT:ELEC
SUBJECT:PURCHASE OF TRANSFORMERS FOR ELECTRIC SERVICES
DEPARTMENT
COUNCIL ACTION FORM
BACKGROUND:
This award is for the purchase of electric transformers necessary to meet the
anticipated needs of the Electric Services Department. These transformers are kept on
hand in order to ensure availability which will enable staff to replace failed transformers
quickly. They are also necessary to meet the anticipated needs of the Electric Services
Department for new services and maintenance activities. Typically, these transformers are
used to provide service for commercial and residential applications.
Lead times have become a challenge for many vendors of critical electric inventory
components due to supply chain issues. To address the Electric Department's need for
transformers in the future, staff issued a Request for Quotation (RFQ) for a one-time purchase
of specific transformers, separated into four equipment groupings. On August 27, 2025, an
RFQ document was posted to Ames Bids, the electronic bidding site. A total of 33 potential
bidders viewed the project.
Bids were received on September 9, 2025. The bids are shown in the table below. The table
reviews the bids in two ways: 1) The "Response Total Cost" column is based on the unit cost
of the transformers as bid by the supplier, 2) The "Evaluation Cost" reflects the unit cost of the
transformers plus an "energy loss" component that considers losses in the transformer under
no-loss and low-loss operation. Transformers that are less efficient under this evaluation are
shown as costing more in this "Evaluation Cost" column:
Number of Equipment
Groupings Responded To
(Four Solicited)
Response
Total Cost*
Evaluation
Cost*
Power Line Supply of Williamsburg,
IA 2 $173,205.18 $187,076.66
Eaglerise Distribution Inc, of Temple
City, CA 4 $276,913.11 $295,379.17
WESCO Distribution, of Des Moines,
IA 4 $313,701.53 $331,882.97
RESCO (Rural Electric Supply
Cooperative) of Ankeny, IA 4 $338,869.00 $352,051.40
Border States of Ames, IA 4 $335,760.84 $355,138.54
Fletcher Reinhardt Company of
Cedar Rapids, IA 4 $375,398.80 $394,728.35
MVA POWER Inc of L'Assomption,
QC 4 $496,594.74 $514,597.49
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*Price is inclusive of 6% State of Iowa Sales Taxes Plus 1% Local Tax.
Power Line Supply bid on two of the four requested types of transformers. However, the
company was not the lowest evaluated price on either line responded to. The bid from
Eaglerise Distribution, Inc. was found to be non-responsive, as the manufacturer is not
approved. WESCO Distribution was the lowest responsible, responsive bidder to offer
transformers that met all specifications. Among responsive, responsible bidders,
WESCO was the lowest for both the Response Total Cost and Evaluation Cost.
Of note, WESCO included a "Price Adjustment Policy" to its bid. This is the only bidder
that included this language. The Price Adjustment Policy (PAC) states:
"Due to extended delivery dates, pricing is not held constant between order placement
and shipment. The price shall be adjusted per the price adjustment clause described
below 3 months prior to shipment. A weighted combination of the following indices will
be used for price adjustments: Core Steel, Copper, Carbon Steel, Labor. The Index
Baseline will be the month and year in which the proposal is issued."
Staff does not anticipate that the potential for price adjustment would be significant enough to
warrant awarding the bid to the next lowest-cost vendor. The price adjustments will be handled
by a change order to the contract at the time the order is placed in accordance with the City's
Purchasing Policies.
This contract will be funded from the Underground System Improvements/Transformers
account in the adopted FY 2025/26 budget. The available budgeted amount is $400,000.
ALTERNATIVES:
1. Award a contract to WESCO, of Des Moines, IA, for the purchase of pad mount
transformers in the amount of $313,701.53. Payments will be based on unit prices and
quantities ordered inclusive of all applicable sales taxes.
2. Direct staff to award the contract to another bidder.
3. Reject the bids.
CITY MANAGER'S RECOMMENDED ACTION:
Transformers are critical to provide reliable electric service to customers of the Ames
Municipal Electric System. It is important to purchase transformers at the lowest
possible cost with minimal risk to the City. It is also imperative to have transformers
available to meet customer needs in the short-term as well as the long-term. Therefore, it
is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as
described above.
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