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Home My WebLink About _ 4.5(a)--Award of Bid Schedule No. 5615 - Three-Phase, Pad Mounted Distribution Transformers CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Authorize and approve the following actions related to Bid Schedule No. 5615 – Three-Phase, Pad-Mounted Distribution Transformers for the City of Redding Electric Utility: (1) Award the contract to General Pacific, Inc., in the amount of $1,258,570.97; (2) Authorize the Purchasing Officer to extend the bid award annually, through September 30, 2029, subject to mutual agreement, with all terms and conditions unchanged and pricing adjustments tied to the Producer Price Index; and (3) Authorize the City Manager, or designee, to approve up to $503,430 per fiscal year as a contingency to address unforeseen costs. Fiscal Impact The purchase of three-phase, pad-mounted distribution transformers was included in the City of Redding Electric Utility’s (REU) General System Improvements Fiscal Year 2025-27 Biennial Budget. As outlined in the five-year financial plan previously presented to the City Council (Council), funding for these improvements, including General System Improvements, was anticipated to be funded by bond proceeds. Should capital expenses associated with these efforts exceed the approved budget, staff will return with recommendations for any necessary budgetary adjustments. Alternative Action The Council could direct staff to rebid the purchase or provide alternative direction to staff. MEETING DATE: September 16, 2025 ITEM NO. 4.5(a) FROM: ***APPROVED BY*** nzettel@cityofredding.org btippin@cityofredding.org SUBJECT: 4.5(a)--Award of Bid Schedule No. 5615 - Three-Phase, Pad-Mounted Distribution Transformers Nick Zettel, Director of Redding Electric Utility Report to Redding City Council September 8, 2025 Re: 4.5(a)--Award of Bid Schedule No. 5615 - Three-Phase, Pad Mounted Distribution Transformers Page 2 Background/Analysis This annual bid enables REU to procure three-phase, pad-mounted distribution transformers to maintain stock levels and ensure availability for capital projects, system expansions, and unplanned replacements due to equipment failures. Transformers are pieces of equipment that step-down utility distribution voltage to service-level voltage suitable for customer use. Maintaining an adequate supply of distribution transformers supports REU's ability to provide efficient and reliable electric service to customers. On Monday, August 4, 2025, staff opened 14 bid proposals. In the evaluation process, staff analyzed the bids based on the bid price and compliance with the City of Redding’s (City) specifications. General Pacific Inc., was determined to be the lowest responsive and responsible bidder, providing the best overall cost to the City, with their bid containing no deviations to the City’s contractual terms. The bids submitted by vendors at a lower bid price than General Pacific’s bid were deemed unresponsive due to incompleteness of bid, use of non-approved manufacturers, and/or unacceptable exceptions to the City’s terms or specifications. Due to the uncertain business climate regarding tariffs, supply chains and potential delays in delivery, vendors cannot reliably project future rates, specifically tariff rates. The requested contingency is 40 percent. This includes the standard 20 percent allowance for unforeseen cost escalations such as freight increases and supply chain price escalations, as well as an additional allowance to cover a potential 20 percent tariff on imported materials associated with this bid. If such a tariff is enacted, the City Manager will direct staff to amend t he purchase agreement to reflect any resulting cost increase. If the total cost exceeds both the base award and all authorized contingency amounts, staff will be instructed to cancel the award and initiate a new bid solicitation. Environmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Priority/City Manager Goals This agenda item is a routine operational item. Attachments ^Bid Tab 5615 CITY OF REDDING NASH SCHEDULE NO. Annual Cost (Eval) Annual Cost (Eval) Annual Cost (Eval) Annual Cost (Eval) Annual Cost (Eval) $604,675.50 $621,411.94 $695,286.74 $1,066,697.78 $886,126.36 $606,389.18 $598,737.06 $637,777.40 $722,523.70 $699,180.97 $600,606.52 $639,970.71 $630,552.15 $658,856.70 $705,958.51 $1,427,961.29 $1,452,278.45 $1,494,410.10 $1,651,640.30 $1,654,084.57 Action / Yawei Kllen ART/Eaglerise Gaonhae Inc ULS Transformers $220,965.59 Grand Total (Evaluated) Submissions will be evaluated per specifications and requirements. These are preliminary results. Manufacturer PURCHASING DIVISION-TABULATION OF BIDS Bid Group 2 Total Evaluated Cost w/Losses $226,080.55 DESCRIPTION Bid Group 3 Total Evaluated Cost w/Losses 5615 $213,570.68 DATE OF OPENING Net Cost Delivered Total Bid Group 1 Total Evaluated Cost w/Losses 3:00 P.M. TIME OF OPENING Hyundai Corporation (USA) $270,259.90 ULS Corporate Inc $248,945.10 August 4, 2025 PulseMac Solutions LLC Kllen Group America Inc ART Transformers Inc Notice Inviting Bids- Furnish Three-Phase Pad-Mounted Distribution Transformers COR #5615 Page 1 of 3 CITY OF REDDING NASH SCHEDULE NO. Annual Cost (Eval) Annual Cost (Eval) Annual Cost (Eval) Annual Cost (Eval) Annual Cost (Eval) $904,057.92 $1,142,716.00 $1,258,570.97 $1,242,111.37 $1,372,789.28 $700,406.69 $832,428.00 $841,803.20 $875,490.68 $922,707.53 $721,428.44 $743,136.00 $828,664.07 $834,628.98 $850,173.14 $1,675,612.56 $1,919,056.00 $1,959,154.23 $2,024,465.95 $2,106,628.95 GE Prolec JST Power Ermco PE Transformer Hitachi JST Power General Pacific Inc $343,490.00 $288,686.96 PURCHASING DIVISION-TABULATION OF BIDS Grand Total (Evaluated) DESCRIPTION Net Cost Delivered Total Gexpro DATE OF OPENING August 4, 2025 Notice Inviting Bids- Furnish Three-Phase Pad-Mounted Distribution Transformers 5615 TIME OF OPENING 3:00 P.M. Anixter $333,748.28 Mader Supply LLC $314,346.29 Bid Group 1 Total Evaluated Cost w/Losses Bid Group 2 Total Evaluated Cost w/Losses Bid Group 3 Total Evaluated Cost w/Losses $253,507.44 Manufacturer Submissions will be evaluated per specifications and requirements. These are preliminary results. COR #5615 Page 2 of 3 CITY OF REDDING NASH SCHEDULE NO. Annual Cost (Eval) Annual Cost (Eval) Annual Cost (Eval) Annual Cost (Eval) Annual Cost (Eval) $1,313,829.45 $950,342.25 $1,789,259.25 $1,882,621.95 $967,630.85 $1,385,788.25 $1,023,895.00 $1,147,072.92 $840,202.67 $593,572.00 $1,051,822.00 $959,965.99 $2,164,600.06 $2,314,716.25 $2,453,073.00 $2,522,735.21 Dong-A Electric Cavalry Energy LLC Nexgen Power Inc. Cavalry Energy LLC Howard Industries Inc AYR Energy Inc. PURCHASING DIVISION-TABULATION OF BIDS Notice Inviting Bids- Furnish Three-Phase Pad-Mounted Distribution Transformers DATE OF OPENING 5615 August 4, 2025 TIME OF OPENING 3:00 P.M. DESCRIPTION Net Cost Delivered Total Bid Group 1 Total Evaluated Cost w/Losses Bid Group 2 Total Evaluated Cost w/Losses Manufacturer Submissions will be evaluated per specifications and requirements. These are preliminary results. Grand Total (Evaluated) Bid Group 3 Total Evaluated Cost w/Losses $356,766.54 $335,356.00 $377,356.00 $415,696.30 COR #5615 Page 3 of 3 Howard AYR Energy Inc