Explanation
BACKGROUND: This ordinance authorizes the Director of Public Utilities to modify the Master Services Agreement Contract EL008750 with American Municipal Power, Inc. (AMP, Inc.) to provide funding for the purchase of wholesale electricity and associated services during 2014 for the Division of Power. The 2014 budget process computed the cost of 12 months of power supply, with two major vendors each supplying part of the year. Since 2007, the Division had been budgeting with a single major vendor each year. Funds were not appropriately coordinated between the two contracts to account for: the effective payment year of March 1 through February 28th, 2015 and the remaining funds from the prior budget year.
Amount of additional funds to be expended: The total of this ordinance is $12,150,000.00. The majority of the funds $12,000,000.00 will come from a reallocation of purchase power money with the previous purchase power vendor/contract.
Reasons additional goods/services could not be foreseen: The Division of Power currently has contracts in place with American Municipal Power, Inc. for the purchase of wholesale electricity. This legislation authorizes increases in the amounts of the contracts to cover needs for 2014.
Reason other procurement processes are not used: American Municipal Power, Inc. is a non-profit organization for state municipalities and, acting as a broker, has contracted competitive prices on the City's behalf through a bidding process.
How cost of modification was determined: This modification is based upon estimated requirements for 2014 at rates as established in the existing contract.
Contract Compliance Number: 310943223, expires January 15, 2016.
American Municipal Power, Inc. does not hold MBE/FBE status.
The company is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recover...
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