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Rescind approval of agreement with Above and Beyond Energy Services of Bakersfield, CA for $502,710 to overhaul Engine 3 at the County’s Cogeneration Plant; Approve a contract with Above and Beyond Energy Services Inc. of Bakersfield, CA for $453,480 to purchase a refurbished Waukesha engine for Engine 3 at the County’s Cogeneration Plant; Approve a contract with Collicutt Energy Services of Bakersfield, CA for $126,080 to perform the installation of the refurbished engine; and Authorize the County Administrator or designee to execute the contracts and any subsequent amendments, with County Counsel concurrence, within the approved FY2024/25 Budget
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The General Services Department recommends the Board of Supervisors:
1. Rescind approval of agreement with Above and Beyond Energy Services of Bakersfield, CA for $502,710 to overhaul Engine 3 at the County’s Cogeneration Plant;
2. Approve a contract with Above and Beyond Energy Services Inc. of Bakersfield, CA for $453,480 to purchase a refurbished Waukesha engine for Engine 3 at the County’s Cogeneration Plant;
3. Approve a contract with Collicutt Energy Services of Bakersfield, CA for $126,080 to perform the installation of the refurbished engine; and
4. Authorize the County Administrator or designee to execute the contracts and any subsequent amendments, with County Counsel concurrence, within the approved FY2024/25 Budget.
SUMMARY:
On October 22, 2024, the Board approved the agreement with Above and Beyond Energy Services (“ABE”) to overhaul Engine 3 at the County’s Cogeneration Plant. However, ABE, the initially selected vendor and contractor based in Canada, does not have the necessary licensing to operate in California. As a result, General Services recommends rescinding the original agreement with ABE, purchasing the refurbished engine directly from ABE, and hiring an independent, licensed contractor, Collicutt Energy Services, to install the engine.
FINANCIAL IMPACT:
There is a total cost increase of $76,850, resulting from the need to separate the purchase and installation of the equipment. This additional funding is being requested as part of the FY2024/25 Mid-Year Report. The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2024/25 Working Budget.
DISCUSSION:
The County’s cogeneration plant provides heated and chilled water, as well as electricity, to various facilities within the downtown Fairfield campus. The plant operates three (3) natural gas generator engines that run continuously, with Engine 3 (manufactured by Waukesha) being the largest, boasting a 1.5-megawatt capacity. This engine requires an overhaul every 40,000 hours, with two possible types of overhauls options: 1) an in-frame overhaul, which replaces the worn components with the engine remaining in place; or 2) full overhaul, where the engine is replaced with a factory-refurbished engine (“ReUp”). Engine 3 was installed in 2006, underwent a full overhaul in 2013, and had an in-frame overhaul in 2019. Based on the analysis of both options, General Services Department recommends moving forward with the full overhaul (ReUp).
In October 2024, the County initially entered into an agreement with ABE to overhaul Engine 3, as they are one of only two vendors authorized by Waukesha to perform engine repairs and overhauls. However, ABE, which is based in Canada with an office in Bakersfield, does not possess the required licensing to perform the installation in California. As a result, the previously approved agreement with ABE will be rescinded in favor of the newly requested contracts. The new contract with ABE will be limited to the procurement of the engine and its associated warranty. A representative from Waukesha will be present onsite to verify proper installation and commissioning and will provide the warranty. The expected lifespan of the overhaul equipment is 40,000 hours or 5 years. Additionally, General Services obtained three quotes from licensed contractors to perform the installation of the refurbished engine, and Collicutt Energy Services of Bakersfield was selected as the lowest responsible bidder.
ALTERNATIVES:
The Board may choose not to approve the contracts; however, since Engine 3 is past due for its overhaul service, this would significantly increase maintenance costs and a greater risk of major system failure.
OTHER AGENCY INVOLVEMENT:
County Counsel was consulted and has approved the contracts as to form.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION