Title
Resolution to Approve a Purchase Order to Floyd’s Rigging & Machinery in the amount of ($41,199.00)
Memorandum
Floyd’s Rigging and Machinery (“Floyd’s”) was hired in July, 2010 to lift the roof, and remove and store the generator, gearbox and shafts from Superior Dam’s Hydroelectric Facility so that the 10-year inspection and maintenance could be completed on the hydroelectric equipment. A purchase order was issued for the work, estimated to be $9,310.00.
The complexity of this work requires a large crane and highly experienced riggers for the protection of the equipment and the safety of employees. It also requires a safe storage facility for the large equipment. Floyd’s is the only company who met these qualifications, was familiar with the unusual configuration of Superior dam’s hydroelectric facility, and had a nearby facility to store the equipment while work at the dam was being performed. As such, Floyd’s received sole source approval for the project, and a purchase order in the amount of $9,310.00 was issued in July, 2010.
After the repairs were made, Floyd’s was contacted to return the equipment and re-install it at the Superior Dam Hydroelectric facility. Upon delivery, a flaw on the inner shaft was discovered. Because the integrity of the shaft was in question, the shaft was returned to Floyd’s storage facility where the extent and severity of the problem could be investigated. The additional transport, storage and rigging of the equipment and removing and replacing of the roof resulted in an additional $21,889.00 in expenditures. Because the additional costs caused the purchase order to exceed $25,000.00, City Council approval is necessary.
The repair of the hydroelectric equipment at Superior dam is not yet complete. The nature of this project is such that the condition and extent of repair needed on the equipment is not known until the units are removed from service and thoroughly inspected. Complications can also occur during re-in...
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