OPERATIONS
COMMITTEE
FEBRUARY
20, 2001
SUBJECT:
WAREHOUSE STORAGE AND RETRIEVAL MACHINES UPGRADE
ACTION: APPROVE CONTRACT AWARD TO UPGRADE STORAGE AND RETRIEVAL MACHINES
A. Adopt the following motion: The Board finds that there is only a sole source to provide an upgrade to the storage and retrieval machines (SRMs). The purchase is for the sole purpose of upgrading the Metro’s existing SRMs. The Board hereby authorizes the upgrade to the SRMs pursuant to PUC Section 130237. (Requires a two-thirds vote.)
B. Authorize the Chief Executive Officer to award a sole source, firm fixed price contract to HK Systems, Inc. for upgrade of the SRMs for an amount not to exceed $561,913 including sales taxes.
This
project seeks to upgrade the motor control components and the positioning
mechanisms on the SRMs, which consist of six Eaton Kenway, Model 750 Stacker
Cranes.
The
stacker cranes, which have been in service for more than fourteen years, are
an integral part of the Automatic Storage and Retrieval System at the Central
Warehouse. Their function is to
store, retrieve and deposit bus parts and material in the Mini-Load storage
area. Components of the existing
motor controller assemblies have been repaired repeatedly, and in many cases
are beyond capability of additional repair.
Our pool of repairable/serviceable controllers has been declining over
recent months, and now has reached a level where one or more cranes are out of
service for extended periods of time. Staff
expects this condition to continue to worsen, eventually resulting in cranes
that cannot be brought back on line. One
crane out of service indefinitely will result in fifteen percent of the bus
parts inventory at the Central Warehouse becoming unavailable to support
day-to-day operations.
The
six stacker cranes, which were manufactured and installed by Eaton Kenway (now
HK Systems, Inc.) in 1987, were manufactured specifically for installation and
operation at the Metro’s Central Warehouse facility.
They operate within a racking
structure
which is an integral part of the building itself, and which supports the
warehouse roof.
HK Systems has upgraded the motor controls on eighty-five Eaton Kenway cranes similar to the cranes installed at Metro and has also upgraded the positioning mechanisms on thirty such cranes from encoder devices to modern laser positioning devices. Hardware configurations for both elements of this upgrade have already been designed, engineered and operated successfully in a production environment for a significant period of time.
Another firm presented with the same tasks would require design and engineering activities, as well as the incumbent testing and evaluation of the equipment prior to installation and post-installation, without guaranteed success. HK Systems installation of this equipment on HK System stacker cranes will ensure that responsibility for incompatibility of hardware/software elements, both new and existing, will not be in dispute. Sole sourcing this procurement ensures that the responsibility and accountability for project success lies with the Original Equipment Manufacturer and not a third-party integrator.
Compatibility
of the performance characteristics of the controller devices and the crane
structure is critical. Inherent in
the crane design are performance limits which define the characteristics of the
performance window within which crane structural integrity is preserved.
Acceleration/ deceleration that may exceed the design specifications of
the crane mast and boom will result in mast whip leading to weld cracks and mast
failure. The Original Equipment
Manufacturer is most qualified to ensure this compatibility, and to be
accountable for the safe operation of the cranes.
HK
Systems is the only approved source to provide the parts and technical expertise
required to upgrade the SRMs. All
designs, patents and rights for the SRMs are exclusively owned by HK Systems.
There is no other source available for the replacement parts.
FINANCIAL
IMPACT
Funding
of $598,200 for this upgrade is included in FY02 budget under Cost Center 6330,
Inventory Management, Project Number 200040, Procurement and Warehouse
Operations and line item number 53102, Acquisition of Equipment. In FY01, no funds were expended in this category.
The
alternative is not to award the contract to HK Systems.
This action is not recommended because of the very real potential for
interruption in service from failures and inefficiencies related to operating
the SRMs in their current condition.
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Colonus
Mitchell Executive
Officer |
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Roger
Snoble Chief
Executive Officer |