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Approve an agreement for $502,710 with Above and Beyond Energy Services of Bakersfield, CA to overhaul Engine 3 at the County’s Cogeneration Plant; and Authorize the County Administrator or designee to execute the agreement and any subsequent amendments, with County Counsel concurrence, within the approved project budget
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors:
1. Approve an agreement (Attachment A) for $502,710 with Above and Beyond Energy Services of Bakersfield, CA to overhaul Engine 3 at the County’s Cogeneration Plant (CoGen); and
2. Authorize the County Administrator or designee to execute the agreement and any subsequent amendments, with County Counsel concurrence, within the approved project budget.
SUMMARY/DISCUSSION:
The County’s CoGen plant provides heated/chilled water and electrical power to County facilities in downtown Fairfield. Engine 3 is the largest engine with 1.5 megawatt capacity, and it has been running for more than 80,000 hours (over 9 years). The engine is due for overhaul. There are two types of overhauls: 1) replace the worn-out components with the engine remaining in place or 2) send out the current engine and replace it with a factory refurbished engine.
Attachment B outlines the costs and benefits of each option. General Services recommends Option 2 - the refurbished replacement. Although the upfront cost of Option 2 is $199,660 more than Option 1, the long-term estimated savings of Option 2 is $1,554,220 over the engine’s 10-year lifecycle. In addition, the refurbished engine comes with a 1-year labor and parts warranty. Finally, the refurbished engine will also come with a new system analytics capability which will enhance active fault detection and diagnostics and improves the resiliency and reliability of the CoGen plant.
Above and Beyond Energy Services is one of only two vendors authorized by the engine manufacturer (Waukesha) to perform engine repairs and overhauls. General Services received quotes from both vendors and Above and Beyond Energy Services is the apparent low quote.
FINANCIAL IMPACT:
The $502,710 for the agreement is included in the FY2024/25 Adopted Budget for the General Services Utilities Division (BU 1657). The term of the agreement is from October 22, 2024 to January 22, 2025.
The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2024/25 Working Budget.
ALTERNATIVES:
The Board could elect to perform the in-frame overhaul option; however, this is not recommended. While the upfront cost is less than the recommended option, the County will not realize the lifecycle savings predicted from replacing with a refurbished engine. This could potentially cost the County up to $1,554,220 over the ten-year engine lifecycle. In addition, the in-frame overhaul will not be as reliable and there will be an estimated 262 hours of additional engine downtime which negatively impacts essential County activities.
OTHER AGENCY INVOLVEMENT:
County Counsel reviewed and approved the contract as to form.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION