Item 6- RCA: Substation Maintenance — original pdf

Backup

Posting Language ..Title Authorize an amendment to a contract for continued substation maintenance for Austin Energy with Primoris T&D Services, LLC, to increase the amount by $10,000,000 for a revised total contract amount not to exceed $20,000,000. Funding: $10,000,000 is available in the Capital Budget of Austin Energy. ..Body Lead Department Austin Financial Services. Client Department(s) Austin Energy. Fiscal Note Funding in the amount of $10,000,000 is available in the Capital Budget of Austin Energy. Procurement Language: Contract Amendment. MBE/WBE: This solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2- 9C (Minority-Owned and Women-Owned Business Enterprise Procurement Program). For the services required for this solicitation, there were no subcontracting opportunities; therefore, no subcontracting goals were established. Prior Council Action: September 1, 2022 - Council approved a contract for substation maintenance with Primoris T&D Services. For More Information: Direct questions regarding this Recommendation for Council Action to Austin Financial Services - Central Procurement at FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. Council Committee, Boards and Commission Action: January 12, 2026 - To be reviewed by the Electrical Utility Commission. Additional Backup Information: The contract amendment is to provide continued specialized installation, maintenance, and repair services at Austin Energy substations. These services include the installation, testing, and inspection of generator breakers, switchgears, and circuit breakers. The contractor will provide onsite coordination with Austin Energy personnel for site access, transportation, work area space, utilities, and material storage. Austin Energy owns, develops, and maintains more than 74 substations throughout its service area and surrounding counties. An amendment to the contract is needed due to significant changes in system needs and project forecasts. Original estimates were based on the 2021 Capital Improvement Project forecast, which anticipated only one new substation and no substation expansion projects. However, updated estimates include seven new substations, four substation expansion projects, with the potential for four more projects. These were not in the original load demand projections but are necessary to support system growth and customer needs. These increased infrastructure requirements exceed the original contract plan, creating a need for additional funding through this amendment. Item 6The additional funds will allow Austin Energy to hit key milestones and timelines regarding building these new substations and substation expansions. Contract Details: Contract Term Length of Term Contract Authorization Initial Term Proposed Amendment Total 5 years 5 years $10,000,000 $10,000,000 Requested Additional Authorization Revised Total Authorization $10,000,000 $10,000,000 $10,000,000 $10,000,000 $20,000,000 Note: Contract Authorization amounts are based on the City’s estimated annual usage.