FROM: Robert Thompson, General Manager
Originator: Riaz Moinuddin, Director of Operations & Maintenance
SUBJECT:
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GAS COMPRESSOR CYLINDERS FOR SPARE INVENTORY
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION:
A. Approve a Sole Source Purchase Order to NEAC Compressor Service for the procurement of two spare cylinder assemblies for Digester Gas Compressors, for a total amount not to exceed $1,936,005 including applicable sales tax and freight; and
B. Approve a contingency of $193,600 (10%).
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BACKGROUND
The Orange County Sanitation District (OC San) has six Digester Gas Compressors, three at each treatment plant, which are used to increase digester gas pressure used as fuel in the CenGen facilities to make electricity and process heat at both plants. These Gas Compressor cylinders from Penn Process Compressors are original equipment manufacturer (OEM) parts for the units that have been in service for more than 30 years. The Penn Process line of compressors is now owned by NEAC Compressor Service.
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
OC San does not intend to replace these Gas Compressors in the next 25 years. Purchasing the spare cylinders will provide equipment availability during compressor overhauls and in the event of a catastrophic failure. Replacement cylinders are not readily available and require fabrication which takes approximately one year, and refurbishment of existing cylinders takes many weeks which results in extended down-time of these critical compressors.
PROPOSED SOLUTION
Approve the purchase of two spare High Pressure and two Low Pressure cylinder assemblies, one set for each plant, for the Penn Process Compressors to maintain asset availability and minimize process downtime.
TIMING CONC...
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