The W.O. 14-11, Water Reclamation Facility, Air Flotation Thickener Equipment Procurement project will furnish two sets of Air Flotation Thickener (AFT) equipment for retrofit in existing AFT concrete basins at the Billings Water Reclamation Facility (WRF). The successful bidder will design, fabricate and deliver the equipment to the WRF. The successful bidder will also assist in the equipment installation, testing, and training. Operations and maintenance manuals and system warranty will also be provided. Actual equipment installation will be publicly bid and completed under a separate construction contract.

After being advertised in the Yellowstone County News and on the City website December 1 and December 8, 2017, staff opened bids on the equipment procurement package on December 19, 2017. Staff recommended delays in awarding the contract at the January 8 and January 22, 2018 meetings in order to further assess the bids.  After an evaluation of each bidder’s submittal and proposed equipment, and after projecting the potential costs to install, operate and maintain each system long-term, staff recommends that City Council award an equipment procurement contract to Evoqua Water Technologies in the amount of $377,992.50.  WesTech Engineering, Inc. submitted a bid of $318,773.00 on their equipment; however, a number of problems with WesTech’s bid submittal and concerns with their proposed equipment were identified:

• Although they later agreed to honor their bid price, WesTech did not acknowledge Addendum No. 1.
• WesTech did not include equipment cut sheets and installation instructions with their bid as instructed on the Bid Form.  We worked with them over the following weeks to acquire the information necessary to evaluate their bid.
• WesTech did not return the Instructions to Bidders, Bond Forms, Agreement, and Contract Specifications along with their Bid Form as required by the bidding instructions.
• The equipment WesTech bid did not initially meet design specification and did not ultimately meet experience requirements.  After receiving further clarification after bidding, WesTech agreed to modify their equipment design and to supply equipment meeting specification at no change to the bid price; however, WesTech has not supplied such modified equipment to any other wastewater facility in the past.  Bidding documents require that the Seller reference five (5) successfully operating AFT systems of the specified type for a minimum of ten (10) years.
• Staff has concerns with the potential increase in maintenance associated with WesTech’s redesigned 3 shaft, fixed flight skimmer system as compared to Evoqua’s familiar pivoting 2 shaft system.  More frequent chain tension adjustment and alignment of the plastic flight approach to and over the scum beach is possible with the additional shaft included in WesTech’s design versus Evoqua’s pivoting steel flights and 2 shaft system.  Staff also has concerns with the potential level of service that WesTech can provide on a system they have not previously installed.  Water Reclamation Facility staff have approximately 40 years of experience with their current AFT equipment which was also manufactured by Evoqua (formerly Rexnord).

↵City Council may:

• Award the equipment procurement contract to Evoqua Water Technologies
• Award the equipment procurement contract to WestTech Engineering, or;
• Disapprove award of the equipment procurement contract.  If this project is not completed, replacement of aging Air Flotation Thickener equipment at the Water Reclamation Facility will be deferred until the future.

Bids were received on December 19, 2017 for W.O. 14-11 Water Reclamation Facility Air Flotation Thickener Equipment Procurement, and the following table shows the results:
 

Bid Item No. 1	WesTech	Evoqua
Air Flotation Thickener Equipment	$318,773.00	$377,992.50

After an evaluation of each bidder’s submittal and proposed equipment, and after projecting the potential costs to install, operate and maintain each system long-term, staff recommends that City Council award an equipment procurement contract to Evoqua Water Technologies in the amount of $377,992.50.

Funding for this project has been approved by City Council in the Capital Improvement Program (CIP) and the budget for the Public Works Department. Funding is sufficient for the equipment procurement now under consideration as well as for future equipment installation. The project will use wastewater funds.
 

	AFT Equipment Procurement and Installation
Project Budget	$900,000
Previously Encumbered	$0
This Contract	$377,992.50
Budget Remaining	$522,007.50

Staff recommends that City Council award an equipment procurement contract for W.O. 14-11, Water Reclamation Facility, Air Flotation Thickener Equipment to Evoqua Water Technologies in the amount of $377,992.50.