Item 4- RCA: Critical Materials Supply Arrangements — original pdf

Backup

Posting Language ..Title Authorize eleven contracts for critical electric utility supplies and equipment for Austin Energy with Apfelbaum Industrial Inc.; KBS Electrical Distributors Inc.; Kerec Co., Ltd.; Priester-Mell & Nicholson Inc.; PulseMac Solutions, LLC; Stuart C Irby Company d/b/a Stuart C Irby Co.; Sungjin Transformer Inc. d/b/a Sungjin Transformer; Taihan Electric USA Ltd.; Techline Inc.; Texas Electric Cooperatives; and Wesco Distribution, Inc., each for an initial term of two years with up to three one-year extension options in an amount not to exceed $200,000,000, divided among the contractors. Funding: $200,000,000 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 $200,000,000 is available in the Capital Budget of Austin Energy. Procurement Language: Austin Financial Services issued a Request for Qualifications Statements solicitation RFQS 1100 EAL4011 for these goods. The solicitation was issued on December 29, 2025, and closed on January 27, 2026. Of the eleven offers received, the recommended contractors submitted the best evaluated responsive offers. A complete solicitation package, including a log of offers received, is available for viewing on the City’s website. This information can currently be found at https://financeonline.austintexas.gov/afo/account_services/solicitation/solicitation_details.cfm?sid=143397 . MBE/WBE: Critical Business Need contracts are exempt from the City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program); therefore, no subcontracting goals were established. 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. Respondents to the solicitation and their Agents should direct all questions to the Authorized Contact Person identified in the solicitation. Council Committee, Boards and Commission Action: May 11, 2026 - To be reviewed by the Electric Utility Commission. Additional Backup Information: The contracts will provide essential electric utility supplies and equipment to be used by Austin Energy work crews for utility maintenance, construction projects, power restoration, emergency response, and warehouse stock. Items purchased through these contracts include single-phase transformers, power cable, copper wire, pole-line hardware, and fuses. These supplies and equipment are considered critical to the operation of the Austin Energy distribution electrical service system with some items requiring same-day delivery in times of emergency. Awarding multiple contracts ensures that Austin Energy can maintain a consistent supply of materials, reduce the risk of supply chain delays, and obtain competitive pricing. Item 4Six of the recommended contractors are current providers for these goods. The requested authorization is based on historical contract expenditures, increasing prices, and future needs. An evaluation team with expertise in this area evaluated the offers and scored Apfelbaum Industrial Inc., KBS Electrical Distributors Inc., Kerec Co., Ltd., Priester-Mell & Nicholson Inc., PulseMac Solutions, LLC, Stuart C Irby Company d/b/a Stuart C Irby Co., Sungjin Transformer Inc. d/b/a Sungjin Transformer, Taihan Electric USA Ltd., Techline Inc., Texas Electric Cooperatives, and Wesco Distribution, Inc. d/b/a Hi-Line Utility Supply Co., LLC or Power Supply Inc. as the best to provide these goods based on company experience, solution, and facility. If these contracts are not approved, the electric utility’s operations could be jeopardized and leave Austin Energy customers vulnerable to outages and service interruptions. Contract Details: Contract Term Initial Term Optional Extension 1 Optional Extension 2 Optional Extension 3 Total Length of Term 2 years 1 year 1 year 1 year 5 years Contract Authorization $80,000,000 $40,000,000 $40,000,000 $40,000,000 $200,000,000 Note: Contract Authorization amounts are based on the City’s estimated annual usage.