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Water & Wastewater Commission Review and Recommendation November 3, 2021 Health and Environment, Safety COA Strategic Direction: Commission Meeting Date: Council Meeting Date: Department: Purchasing November 18, 2021 Client: Rick Coronado Agenda Item Recommend approval to negotiate and execute a multi-term contract with Xylem Water Solutions USA, Inc., to provide replacement pumps, parts, and service of Flygt pumps, for up to five years for a total contract amount not to exceed $1,614,700. Amount and Source of Funding Funding in the amount of $322,940 is available in the Fiscal Year 2021-2022 Operating Budget of Austin Water. Funding for the remaining contract term is contingent upon available funding in future budgets. Purchasing Language: Sole Source. November 3, 2021 — To be reviewed by the Water and Wastewater Commission. Sole source contracts are exempt from the City Code Chapter 2-9D Minority Owned and Women Owned Business Enterprise Procurement Program; therefore, no subcontracting goals were established. N/A Prior Council Action: Boards and Commission Action: MBE/WBE:  The contract is to provide replacement pumps, parts, and service of Flygt pumps. There are currently 80 Flygt pumps in operation for Austin Water. Over 60 of these pumps are in lift stations, ranging from five horsepower all the way to 134 horsepower. With new lift stations being added in the future (currently four to be added this year), more Flygt pumps will be added to the system. The establishment of this contract will reduce the time it takes to complete repairs to Flygt pumps and to order replacement pumps when repairs are no longer financially sensible. The average life expectancy of Flygt pumps should provide 15 to 20 years. When a pump fails each pump is evaluated and if the repair cost is below 70% of replacement cost and the pump is still within its expected life expectancy then the pump is repaired. Any repair cost above the 70% of replacement cost would be replaced. This contract offers an in-situ rehabilitation option versus a new brand design retrofit which require associated time and materials costs with a new pump base, rail system, electrical and controls replacement. Contract Detail: Contract Term Initial Term Optional Extension 1 Optional Extension 2 TOTAL Length of Term 3 yrs. 1 yr. 1 yr. 5 yrs. Contract Authorization $ 968,820 $ 322,940 $ 322,940 $1,614,700 Note: Contract Authorization amounts are based on the City’s estimated annual usage. PRICE ANALYSIS a) Cost Analysis: The proposed contract pricing is consistent with a 1.21% decrease represented in the market