REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Negotiate and Execute Amendment(s) to the Agreement with Performance Mechanical, Inc. for As-Needed Boilermaker and Pipefitter Services for Silicon Valley Power for Additional Compensation Not-to-Exceed $2,611,903, for a Total Maximum Compensation Not-to-Exceed $4,611,903, Inclusive of $2,000,000 Previously Authorized by the City Council
Report
BACKGROUND
Silicon Valley Power (SVP), the City of Santa Clara’s electric utility, owns and operates two gas-fired power generation facilities within the city limits, as well as remote power generation facilities. Equipment at these facilities includes large industrial systems such as Heat Recovery Steam Generators (HRSG), high-pressure steam and water piping, pressure vessels, and other critical mechanical equipment. These systems operate under high temperatures and pressures and require specialized inspection, welding, fabrication, repair, and replacement to maintain safe, reliable, and efficient operations.
To perform this specialized work, SVP contracts with qualified firms that provide certified boilermaker, pipefitter, welding, and related mechanical maintenance services. These services support both planned maintenance outages and emergency repairs necessary to keep generation equipment operating safely.
On July 13, 2021, the City Council authorized the City Manager to execute an agreement with Performance Mechanical, Inc. (PMI) for as-needed boilermaker and pipefitter services following a competitive formal solicitation process (RTC 21-725, Attachment 1). The agreement includes an initial five-year term beginning July 1, 2021, through June 30, 2026, with up to five additional one-year options to extend the agreement through June 30, 2031 (Attachment 2). The maximum compensation authorized for the initial five-year term was $2,000,000.
Subsequent amendments to the agreement updated terms associated with work authorization, warranty, payment...
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