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TitleAgenda Item: Consider resolution to award a contract to Pennsylvania Transformer Technology Inc ...
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AGENDA ITEM EXECUTIVE SUMMARY

Agenda Item:
Consider resolution to award a contract to Pennsylvania
Transformer Technology Inc. for the construction and delivery of a
new substation power transformer for Western Ave Substation

Presenter & Title: Hal Wright, Superintendent of Electrical Services

Date: November 13, 2017

Please Check Appropriate Box:
X Committee of the Whole Meeting Special Committee of the Whole Meeting
X City Council Meeting Special City Council Meeting

Public Hearing Other -
Associated Strategic Plan Goal/Objective: Vision 5, Goal G to Develop and provide
funding for capital investments and projects that consider a variety of local capital needs
and those mandated by State/Federal Agencies including: other identified capital projects
and equipment for all departments and programs (Capital Projects Plan).

Estimated Cost: $501,110.00
Budgeted? __X_ Yes

____ No
Other ____ Yes
Funding? ____ No

If “Other Funding,” please explain how the item will be funded:

Executive Summary:
The Western Ave Substation transformer was identified as needing replacement in the
current budget. Abnormal oil samples and preventive maintenance testing show that it is
at end-of-life.

Sealed bids for the construction and delivery of a new 34.5/12kV 20MVA substation
Power Transformer were opened on October 23, 2017.

Manufacturer Mineral Oil FR3 Oil
PTTI $427,067.00 $501,110.00
ABB $643,157.00 $693,490.00

Virginia Transformer $374,163.00 $420,163.00
WEG $419,620.00 $451,620.00

Virginia Transformer was low bidder. However, due to several factors including
payment terms and physical size requirements the bid was rejected. WEG transformer

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was the next lowest bidder. Due to the transformer’s physical size this bid was also
rejected. Pennsylvania Transformer Technology Inc (PTTI) submitted lowest bid at
$501,110.00 that conformed to the bid requirements including size restrictions.

This project will be completed over two fiscal years due to the length of time it takes to
build the transformer. A 10% deposit will be paid for construction and shipping of the
transformer, with the 80% due upon delivery and 10% due on final acceptance. Delivery
is planned in fall of 2018 to coincide with construction at Western Ave substation.
Attachments: (please list)
• Resolution 2017-120
• Recommendation Letter from Stanley Consultants dated November 15, 2017
• Transformer Bid Tabulation
• Western Ave Substation “Rearrange” Construction Estimate Date November 1, 2017
• Conformed Contract for Construction and Delivery of new Power Transformer with

Pennsylvania Transformer Technology Inc.
Recommendation / Suggested Action: (how item should be listed on agenda)
Award contract to Pennsylvania Transformer Technology Inc. for the construction and
delivery of a new substation power transformer for Western Ave Substation in an amount
not to exceed $501,110.00.

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ms1874 00 72 63-5

a. in the exercise of reasonable judgment, Engineer determines
that: 1) it is at least equal in quality, durability, appearance, strength,
and design characteristics; 2) it will reliably perform at least equally well
the function imposed by the design concept of the completed Project as
a functioning whole; 3) it has an acceptable record of performance and
availability of responsive service; and

b. Seller certifies that if approved: 1) there will be no increase in
any cost, including capital, installation or operating costs, to Buyer; and
2) the proposed item will conform substantially to the detailed
requirements of the item named in the Contract Documents.


B. Engineer’s Evaluation: Engineer will be allowed a reasonable

time within which to evaluate each proposal or submittal made pursuant
to Paragraph 5.04.A. Engineer will be the sole judge of whether to
accept or reject such a proposal or submittal. No “or-equal” will be
ordered, manufactured or utilized until Engineer’s review is complete,
which will be evidenced by an approved Shop Drawing. Engineer will
advise Buyer and Seller in writing of any negative determination.
Notwithstanding Engineer’s approval of an “or-equal” item, Seller shall
remain obligated to comply with the requirements of the Contract
Documents.


C. Special Guarantee: Buyer may require Seller to furnish at

Seller’s expense a special performance guarantee or other surety with
respect to any such proposed “or-equal.”


D. Data: Seller shall provide all data in support of any such

proposed “or-equal” at Seller’s expense.

5.05 Taxes


A. Seller shall be responsible for all taxes and duties arising out

of the sale of the Goods and the furnishing of Special Services. All
taxes are included in the Contract Price.

1. Buyer will furnish the required certificates of tax exemption to
Seller with respect to materials and equipment to be incorporated into
the Project facilities.

2. Buyer's exemption does not apply to construction tools,
machinery, equipment, or other property purchased by or leased by
Seller, or to supplies or materials not incorporated into the Project
facilities.

3. The Contract Price does not include the cost of sales or
compensating use taxes to the extent such are exempted by this
paragraph.


5.06 Shop Drawings and Samples


A. Seller shall submit Shop Drawings and Samples to Buyer for

Engineer’s review in accordance with the schedule required in
Paragraph 2.06.A. All submittals will be identified as required and
furnished in the number of copies specified in the Contract Documents.
The data shown on the Shop Drawings will be complete with respect to
quantities, dimensions, specified performance and design criteria,
materials, and similar data to show Engineer the services, materials,
and equipment Seller proposes to provide.


B. Where a Shop Drawing or Sample is required by the Contract

Documents, any related work performed prior to Engineer’s review of
the pertinent submittal will be at the sole expense and responsibility of
Seller.


C. Submittal Procedures:
1. Before submitting each Shop Drawing or Sample, Seller shall

have determined and verified:
a. all field measurements (if required), quantities, dimensions,

specified performance criteria, installation requirements, materials,
catalog numbers, and similar information with respect thereto; and

b. that all materials are suitable with respect to the indicated
application, fabrication, shipping, handling, storage, assembly, and
installation pertaining to the furnishing of Goods and Special Services.

c. Seller shall also have reviewed and coordinated each Shop
Drawing or Sample with the Contract Documents.

2. Each submittal shall bear a stamp or include a written
certification from Seller that Seller has reviewed the subject submittal
and confirmed that it is in compliance with the requirements of the
Contract Documents. Both Buyer and Engineer shall be entitled to rely
on such certification from Seller.

3. With each submittal, Seller shall give Buyer and Engineer
specific written notice of any variations that the Shop Drawing or
Sample may have from the requirements of the Contract Documents.
This notice shall be both in a written communication separate from the
submittal and by specific notation on each Shop Drawing or Sample.


D. Engineer’s Review:
1. Engineer will provide timely review of Shop Drawings and

Samples.
2. Engineer’s review will be only to determine if the Goods and

Special Services covered by the submittals will, after installation or
incorporation in the Project, conform to the information given in the
Contract Documents and be compatible with the design concept of the
completed Project as a functioning whole.

3. Engineer's review shall not relieve Seller from responsibility
for any variation from the requirements of the Contract Documents; nor
will any review by Engineer relieve Seller from responsibility for errors
or omissions in the Shop Drawings or from responsibility for having
complied with the provisions of paragraph 5.06.C.1.


E. Seller shall furnish required submittals with sufficient

information and accuracy in order to obtain required approval of an item
with no more than three submittals. Engineer will record Engineer’s time
for reviewing subsequent submittals of Shop Drawings, samples, or
other items requiring approval and Seller shall reimburse Buyer for
Engineer’s charges for such time.


F. In the event that Seller requests a change of a previously

approved item, Seller shall reimburse Buyer for Engineer’s charges for
its review time unless the need for such change is beyond the control of
Seller.


G. Resubmittal Procedures: Seller shall make corrections

required by Engineer and shall return the required number of corrected
copies of Shop Drawings and submit, as required, new Samples for
review and approval. Seller shall direct specific attention in writing to
any revisions other than the corrections called for by Engineer on
previous submittals.


5.07 Continuing Performance


A. Seller shall adhere to the progress schedule established in

accordance with Paragraph 2.06.A., and the Goods shall be delivered
and the Special Services furnished within the Contract Times specified
in the Agreement.


B. Seller shall carry on furnishing of the Goods and Special

Services and adhere to the progress schedule during all disputes or
disagreements with Buyer. No furnishing of Goods and Special
Services shall be delayed or postponed pending resolution of any
disputes or disagreements, except as permitted by Paragraphs 11.03 or
11.04, or as Buyer and Seller may otherwise agree in writing.


5.08 Seller’s Warranties and Guarantees


A. Seller warrants and guarantees to Buyer that the title to the

Goods conveyed shall be proper, its transfer rightful, and free from any
security interest, lien, or other encumbrance. Seller shall defend,
indemnify, and hold Buyer harmless against any liens, claims, or
demands contesting or affecting title of the Goods conveyed.


B. Seller warrants and guarantees to Buyer that all Goods and

Special Services will conform with the Contract Documents, and with
the standards established by any Samples approved by Engineer.
Engineer shall be entitled to rely on Seller’s warranty and guarantee. If
the Contract Documents do not otherwise specify the characteristics or
the quality of the Goods, the Goods shall comply with the requirements
of Paragraph 5.02.B.


C. Seller’s warranty and guarantee hereunder excludes defects
or damage caused by:

1. abuse, improper modification, improper maintenance, or
improper operation by persons other than Seller; or

2. corrosion or chemical attack, unless corrosive or chemically-
damaging conditions were disclosed by Buyer in the Contract
Documents and the Contract Documents required the Goods to
withstand such conditions;

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ms1874 00 72 63-6

3. use in a manner contrary to Seller's written instructions for
installation, operation, and maintenance; or

4. normal wear and tear under normal usage.

D. Seller's obligation to furnish the Goods and Special Services

in accordance with the Contract Documents shall be absolute. None of
the following will constitute an acceptance of Goods and Special
Services that are non-conforming, or a release of Seller’s obligation to
furnish the Goods and Special Services in accordance with the Contract
Documents:

1. observations by Buyer or Engineer;
2. recommendation by Engineer or payment by Buyer of any

progress or final payment;
3. use of the Goods by Buyer;
4. any acceptance by Buyer (subject to the provisions of

Paragraph 8.02.D.1) or any failure to do so;
5. the issuance of a notice of acceptance by Buyer pursuant to

the provisions of Article 8;
6. any inspection, test or approval by others; or
7. any correction of non-conforming Goods and Special

Services by Buyer.

E. Buyer shall promptly notify Seller of any breach of Seller’s

warranties or guarantees.

F. Seller makes no implied warranties under this Contract.


5.09 Indemnification

A. To the fullest extent permitted by Laws and Regulations,

Seller shall indemnify and hold harmless Buyer and Engineer, and the
officers, directors, members, partners, employees, agents, consultants,
contractors, and subcontractors of each and any of them from and
against all claims, costs, losses, and damages (including but not limited
to all fees and charges of engineers, architects, attorneys, and other
professionals and all court or arbitration or other dispute resolution
costs) arising out of or relating to the performance of Seller's obligations
under the Contract Documents, provided that any such claim, cost,
loss, or damages attributable to bodily injury, sickness, disease, or
death, or to injury to or destruction of tangible property (other than the
Goods themselves), including the loss of use resulting therefrom, but
only to the extent cause by any negligent act or omission of Seller, or
any individual or entity directly or indirectly employed by Seller or
anyone for whose acts Seller may be liable.


B. In any and all claims against Buyer or Engineer or any of their

respective assignees, consultants, agents, officers, directors, members,
partners, employees, agents, consultants, contractors, or
subcontractors, by any employee (or the survivor or personal
representative of such employee) of Seller, any subcontractor, any
supplier, or any individual or entity directly or indirectly employed by any
of them to furnish any of the Goods and Special Services, or anyone for
whose acts any of them may be liable, the indemnification obligation
under Paragraph 5.09.A shall not be limited in any way by any limitation
on the amount or type of damages, compensation, or benefits payable
by or for seller or any such subcontractor, supplier, or other individual or
entity under workers’ compensation acts, disability benefit acts, or other
employee benefit acts.


C. The indemnification obligations of Seller under Paragraph

5.09.A shall not extend to the liability of Engineer and Engineer’s
officers, directors, partners, employees, agents, and consultants arising
out of:

1. the preparation or approval of, or the failure to prepare or
approve, maps, Drawings, opinions, reports, surveys, Change Orders,
designs, or Specifications; or

2. giving directions or instructions, or failing to give them, if that
is the primary cause of the injury or damage.

5.10 Delegation of Professional Design Services


A. Seller will not be required to provide professional design
services unless such services are specifically required by the Contract
Documents or unless such services are required to carry out Seller’s
responsibilities for furnishing the Goods and Special Services. Seller
shall not be required to provide professional services in violation of
applicable law.



B. If professional design services or certifications by a design
professional related to the Goods and Special Services are specifically
required of Seller by the Contract Documents, Buyer and Engineer will
specify all performance and design criteria that such services must
satisfy. Seller shall cause such services or certifications to be provided
by a properly licensed professional, whose signature and seal shall
appear on all drawings, calculations, specifications, certifications, Shop
Drawings and other submittals prepared by such professional. Shop
Drawings and other submittals related to the Goods and Special
Services designed or certified by such professional, if prepared by
others, shall bear such professional’s written approval when submitted
to Engineer.


C. Buyer and Engineer shall be entitled to rely upon the

adequacy, accuracy and completeness of the services, certifications or
approvals performed by such design professionals, provided Buyer and
Engineer have specified to Seller all performance and design criteria
that such services must satisfy.


D. Pursuant to this Paragraph 5.10, Engineer’s review and

approval of design calculations and design drawings will be only for the
limited purpose of checking for conformance with performance and
design criteria given and the design concept expressed in the Contract
Documents. Engineer’s review and approval of Shop Drawings and
other submittals (except design calculations and design drawings) will
be only for the purpose stated in Paragraph 5.06.D.2.


E. Seller shall not be responsible for the adequacy of the

performance or design criteria required by the Contract Documents.

ARTICLE 6 - SHIPPING AND DELIVERY

6.01 Shipping


A. Seller shall select the carrier and bear all costs of packaging,
transportation, insurance, special handling and any other costs
associated with shipment and delivery.


6.02 Delivery


A. Seller shall deliver the Goods F.O.B. the Point of Destination
in accordance with the Contract Times set forth in the Agreement, or
other date agreed to by Buyer and Seller.


B. Seller shall provide written notice to Buyer at least 10 days

before shipment of the manner of shipment and the anticipated delivery
date. The notice shall also include any instructions concerning special
equipment or services required at the Point of Destination to unload and
care for the Goods. Seller shall also require the carrier to give Buyer at
least 24 hours notice by telephone prior to the anticipated time of
delivery.


C. Buyer will be responsible and bear all costs for unloading the

Goods from carrier.

D. Buyer will assure that adequate facilities are available to

receive delivery of the Goods during the Contract Times for delivery set
forth in the Agreement, or another date agreed by Buyer and Seller.


E. No partial deliveries shall be allowed, unless permitted or

required by the Contract Documents or agreed to in writing by Buyer.





6.03 Risk of Loss


A. Risk of loss and insurable interests transfer from Seller to
Buyer upon Buyer’s receipt of the Goods.


B. Notwithstanding the provisions of Paragraph 6.03.A, if Buyer

rejects the Goods as non-conforming, the risk of loss on such Goods
shall remain with Seller until Seller corrects the non-conformity or Buyer
accepts the Goods. If rejected Goods remain at the Point of
Destination pending modification and acceptance, then Seller shall be
responsible for arranging adequate protection and maintenance of the
Goods at Seller's expense.


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27924.01.00 MEDIUM POWER TRANSFORMERS
ms1874 SECTION 33 73 17 - Page 29


DATA SHEETS
3-PHASE, 2-WINDING TRANSFORMER

Equipment Name: Tag No.: Option 2

DESCRIPTION UNITS SPEC DATA VENDOR DATA
80% lagging power factor % By Manufacturer
80% leading power factor % By Manufacturer
Excitation Current at 100% Rated Voltage and Max. MVA % By Manufacturer
GUARANTEED LOSSES
Auxiliary Losses at full load and Max. MVA rating kW By Manufacturer
No-Load Losses at 100% Rated Voltage kW By Manufacturer
Load Losses at Max. MVA Rating KW By Manufacturer
LOSS EVALUATION
Auxiliary Losses $/kW 130.53
No-Load Losses $/kW 1740.27
Load Losses $/kW 502.58
DIMENSIONS (APPROXIMATE)
Overall Height in. By Manufacturer
Overall Width in. 162
Overall Depth in. 162
Height over Tank in. By Manufacturer
Height for Untanking in. By Manufacturer
Minimum Distance Between Surge Arresters in. By Manufacturer
Recommended Min. Space Between Transformer and Adjacent
Structures in. By Manufacturer

WEIGHTS (APPROXIMATE)
Core and Coil lbs. By Manufacturer
Tank and Fittings lbs. By Manufacturer
Oil lbs. By Manufacturer
Total Transformer With Oil lbs. By Manufacturer
Total Shipping Weight lbs. By Manufacturer
Weight of Largest Piece for Handling lbs. By Manufacturer
DELIVERY
Method of Shipment (truck, rail, barge, ship) - By Manufacturer
Total No. of Weeks from Award of Contract, FOB site wks By Manufacturer
Submittal of Review Drawings After Award of Contract wks By Manufacturer
Manufacturing Time after Receipt of Approved Drawings wks By Manufacturer
SPECIAL REQUIREMENTS
System configuration
See loading conditions in Table 1 below








-



List parts Requiring Field Assembly








- By Manufacturer



325

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MEDIUM POWER TRANSFORMERS 27924.01.00
Page 30 - SECTION 33 73 17 ms1874

DATA SHEETS
3-PHASE, 2-WINDING TRANSFORMER

Equipment Name: Tag No.: Option 2

DESCRIPTION UNITS SPEC DATA VENDOR DATA
Describe Extent of Field Welding

- By Manufacturer

List of Required Maintenance Tools Furnished With Equipment

- By Manufacturer

List of Required Spare Parts Furnished With Equipment
- High Side Bushing with Gasket – Qty. 1
- Low Side Bushing with Gasket – Qty. 1
- LTC Tank Gaskets – Qty. 1 set Manufacturer to provide $/part

List any Special Considerations
Maximum fault current available from tertiary in kA from both HV and
LV windings:

-

END OF SECTION

1) P. E. Schulz
2) P. K. Mitchell

326

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