In 2016, the City of Billings Solid Waste Division constructed a compressed natural gas (CNG) fueling station at the Billings Operations Center (BOC) to serve its fleet of CNG-powered trucks.  There is only a single compressor in the current system, but provisions were made during the initial construction for a future second compressor.  A second compressor will provide much-needed backup redundancy if the existing compressor becomes inoperable, but it can also operate in parallel with the existing compressor, allowing for shorter fueling times and increasing the overall efficiency of the system.  The project generally consists of the installation of an additional gas compressor inside an enclosure (similar in size and operation to existing); and all associated piping, electrical upgrades, and controls to be integrated into the existing system.

The bidding for this contract was advertised June 29 and July 6, 2018, in The Yellowstone County News and on the City's website.  Bids were opened July 10, 2018, and Ace Electric Inc. was the lowest responsible bidder.

The Council may:

• Award a contract to the low bidder, Ace Electric Inc, in the amount of $256,674, or
• Reject all bids, which will keep the CNG system with only one compressor, making it susceptible to potential down-time and inability to service Solid Waste's CNG fleet of trucks.  This would likely result in Solid Waste having difficulty meeting daily solid waste hauling requirements.

The following bids were received and evaluated.
 

CNG Installation Contractor (Bidder)	Lump Sum Base Bid Amount
Ace Electric Inc.	$ 256,674
Star Service	$ 261,520

The project is being funded by Solid Waste funds, as approved in the FY 2019 CIP.  There are adequate funds available for the low bid amount.

Staff recommends Council award a construction contract to Ace Electric Inc. for W.O. 18-17 -- CNG Backup Compressor in the amount of $256,674.