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HomeMy WebLinkAboutCORRESPONDENCE - PURCHASE ORDER - 9192231 (2)Exception – Honeywell Page 1 Utilities electric · stormwater · wastewater · water 700 Wood Street PO Box 580 Fort Collins, CO 80522 970.221.6700 970.221.6619 – fax 970.224.6003 – TDD utilities@fcgov.com fcgov.com/utilities TO: Darin Atteberry, City Manager _______ THROUGH: Pat Johnson, Senior Buyer _______ Tim McCollough, Deputy Director, Utilities - Light & Power _____ Gerry Paul, Purchasing Director _______ FROM: Adam Bromley, Director, Operations & Technology ______ DATE: December 11, 2019 RE: Exception to use of the competitive purchasing process for the purchase of and installation of updated field tools software Purchase Amount: Initial Purchase $51,751.00 – Total NTE $200,000 Background: As part of the Advanced Meter Fort Collins (AMFC) project implementation that took place in 2012-2013, the majority of existing electric meters were replaced with meters capable of transmitting energy use data back to the utility wirelessly. Utilities also installed communications modules for water meters to transmit water consumption wirelessly as well. The wireless network that is used to retrieve these meter reads automatically is commonly referred to as the Advanced Metering Infrastructure (AMI) system. The AMI equipment purchased and installed during the AMFC project deployment was selected through a competitive Request For Proposal (RFP) process. The contract that Fort Collins has with the primary vendor has a 20-year term and does not expire until August 2031. All equipment that was purchased communicates via a proprietary, encrypted wireless network that does not integrate with other vendors’ communications protocols. Field tools that interrogate, read, and/or re-program the electric meters and water communication modules also utilize the proprietary, encrypted network. The existing handheld field tools are reaching the end of their useful life and replacement parts for these devices are no longer commercially available. Utilities is experiencing a high percentage of end-of-life failures of these obsolete handheld devices and desires to replace that technology. The new field tool handheld hardware, software and associated installation is provided by the same primary vendor mentioned above due to the secure communications protocol of the AMI system. This solution is necessary to accommodate operations within the water and electric meter departments and to support our existing metering infrastructure. DocuSign Envelope ID: 224BBFDA-B9F6-43C4-AA50-E4F957A28A09 Sole Source Exemption Page 2 Scope of Work: Fort Collins Light & Power has been operating the AMI system and supporting it with the current field tool technology since 2012. This software and hardware purchase ensures that we have the solution in place to support our metering infrastructure owned and operated by Fort Collins Utilities. It also supports field hardware purchases necessary by electric and water meter departments into the future. Exception to Competitive Bid or Proposal Rationale: In accordance with Code Section 8-161(d)(3) City Council approval is not required for exceptions less than $200,000. Code Section 8-161(d)(1)(c). A particular material or service is required to maintain interchangeability or compatibility as a part of an existing integrated system. Exception to Competitive Bidding Rationale: The AMI meters and associated field tools communicate via a proprietary, encrypted wireless protocol that does not integrate with other vendors’ communications protocols. The software purchase is necessary for Utilities to support the water communications modules and electric meters. There is no other company that can provide these services. Recommendation: Recommend approval of an exception to the use of the competitive bid or proposal in accordance with City Code 8-161(d)(1)(c) and 8-161(d)(3) which authorizes the City Manager to approve exceptions less than $200,000. The Purchasing Agent may use this approval, as authorized by City Code Section 8- 161(d)(4), as the basis for negotiating the purchase of new software and hardware from Honeywell, Inc. DocuSign Envelope ID: 224BBFDA-B9F6-43C4-AA50-E4F957A28A09