Submitted By: Brittany Craven
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Presentation By: Doug Peebles
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Department: Electric Utility
FORMAL TITLE:
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Contracts for the purchase and stock of single and three-phase pad and pole-mount transformers to Stuart C. Irby Company, LLC, and Gresco Supply, Inc., with an aggregate expenditure not to exceed $13,000,000
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Operational Excellence
PROOF OF PUBLICATION:
Request for Proposals released to the public on February 7, 2025.
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BACKGROUND:
Maintaining adequate transformer inventory is essential to ensuring electric system reliability and supporting the City’s operational and emergency response needs. Transformers are purchased on an as-needed basis and historically the City has utilized a transformer stocking program with a single distributor. Under that arrangement, a single distributor was responsible for maintaining inventory at its facilities, under the condition that the City purchase any remaining stock at the end of the contract term.
To improve flexibility and cost efficiency, the City worked to transition operations to support a supply arrangement with two distributors. This approach increases on-hand inventory, promotes ongoing competitive pricing, and eliminates the obligation to purchase excess stock at contract expiration.
FINDINGS AND CONCLUSIONS:
On February 7, 2025, the City issued Request for Proposals (RFP) Number: ELE/250274 seeking qualified vendors to supply and stock single- and three-phase pad- and pole-mounted transformers. Proposals were received from ten vendors, of which five were deemed responsive. The City’s Selection Committee convened on April 9, 2025, to conduct a technical evaluation of the responsive proposals as the first of a two-step evaluation process. The Selection Committee met for the second step on April 9, 2025, to evaluate best value and finalize scoring. Based on the tabulated results, Committee members recommended a multi-award contract to the two highest-ranked proposers, Gresco Supply, Inc. (“Gresco”) and Stuart C. Irby. Company, LLC (“Irby).
The City will have the ability to purchase transformers based on specific unit pricing and promised lead times from either vendor. Pricing will be updated quarterly, up to a maximum negotiated increase of 1.5% with Irby and 3% with Gresco, or unit prices may be reduced.
Staff recommends approval of the award of contracts for the purchase and stocking of transformers to Irby and Gresco as provided in the attached contract documents.
FISCAL IMPACT:
These transformers are purchased on inventory and will be charged to 457-141-000-000-41-14100. The department will adhere to budgeted expenditures for items issued.
PROCUREMENT REVIEW:
These goods were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
The Agreements have been reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny