FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Assistant General Manager
SUBJECT:
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PURCHASE OF INVENTORY REPLACEMENT PARTS
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GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION:
A. Approve a Sole Source Purchase Order to GEA Mechanical Equipment US Inc. for the purchase of inventory spare parts for Thickening and Dewatering centrifuges, for a total amount not to exceed $103,913, plus applicable sales tax and freight; and
B. Approve a contingency of $10,392 (10%).
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BACKGROUND
As part of Project No. P1-101, three GEA-Westfalia Separator Thickening Centrifuges and three GEA-Westfalia Dewatering Centrifuges were commissioned. Thickening centrifuges thicken the sludge feed for the digestion process to increase solids density. dewatering centrifuges remove water from biosolids to make the material suitable for truck transportation. The sludge thickening and the biosolids dewatering processes are central to the biosolids recycling program and complying with the Orange County Sanitation District’s (Sanitation District) operating permits.
RELEVANT STANDARDS
• 24/7/365 treatment plant reliability
• Maintain a proactive asset management program
• Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting
PROBLEM
The Sanitation District has identified critical Original Equipment Manufacturer (OEM) spare parts that are not in inventory that are subject to normal wear. These OEM spare parts are not “off the shelf,” nor readily available, and have long lead times that compromise equipment availability.
PROPOSED SOLUTION
Procure spare inventory parts for GEA centrifuges from the OEM to maintain asset availability and minimize process downtime.
TIMING CONCERNS
N/A
RAMIFICATIONS OF NOT TAKING ACTION
Failure to maintain adequate spare parts in inventory could result in extended equipment downtime affecting operational permits.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
GEA is the original equipment manufacturer and GEA Mechanical Equipment US Inc. is the only authorized distributor within the Sanitation District’s geographical region. A 10% contingency is requested in the event of pricing changes due to tariffs, delays in placing the order beyond the quote availability, or other unforeseeable changes.
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District’s Purchasing Ordinance. This recommendation will be funded under the Repair and Maintenance line item for Plant No. 1 Maintenance Department (Budget Fiscal Year 2020-21, Section 6, Page 92). The available funding is sufficient for this action.
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Date of Approval |
Contract Amount |
Contingency |
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10/07/2020 |
$103,913 |
$10,392 (10%) |
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ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package:
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