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PUC approves JMI Edison contract for deep‑well pumps, motors and cables

2825157 · January 30, 2025
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Summary

The Guam Public Utilities Commission on Jan. 30 approved Guam Waterworks Authority’s five‑year procurement from JMI Edison for submersible pumps, motors, cables and splicing gel to restock deep‑well inventory; the commission applied its standard contingency and recorded a commissioner recusal.

The Guam Public Utilities Commission on Jan. 30 approved the Guam Waterworks Authority’s petition to award a procurement contract to JMI Edison for submersible pumps, motors, cables and splicing gels used in GWA’s deep drinking‑water wells. The commission recorded a recusal and approved the award for the initial three‑year term and the two one‑year options.

GWA filed the petition on Jan. 14, 2025, seeking approval of the winner of IFB GWA‑2024‑19, a resolicitation for submersible pumps and motors that added splicing gels and submersible cables. GWA’s procurement team evaluated two bids and selected JMI Edison. The Consolidated Commission on Utilities previously approved the award and authorized $2,965,892.04 for the base three‑year term and $1,977,261.36 for the two option years; CCU also authorized a 10% cost contingency that CCU estimated would bring the total authorization to about $5.4 million.

PUC staff reviewed the IFB and GWA’s bid analysis and recommended PUC approval. The ALJ’s report noted that motor prices in the winning bid were, in places, substantially lower than current prices; reported unit pricing ranged from about $1,500 to $20,000 for motors and about $1,200 to $11,000 for pumps depending on specification, horsepower and number of stages. The petition states funding for the contract will likely come from GWA’s capital improvement program account. The ALJ recommended PUC approval of $2,965,892.04 for the initial three‑year term and $1,977,261.36 for the two option years, for a five‑year total of $4,943,153.40, with the ordinary PUC contingency to apply.

Commissioner Mike Pangolina recused himself from the docket, stating, “I have to recuse on this, docket item. The CWA is a client of my firm in pending litigation.” Miguel, speaking for GWA during the item, said the authority had “made extensive efforts to make sure that we had the maximum amount of competition” and added, “we are running dangerously thin on our inventory, and, we do need to replenish the critical inventory levels for deep well pumps and motors.” Miguel also said shipping times vary and that some pump models are manufactured to order, but “we have a huge order ready to go out as soon as you approve.”

Commissioner Pete moved approval; a second was recorded and the motion carried unanimously among the voting commissioners. The PUC’s proposed order will reflect the ALJ’s determinations and apply the PUC’s ordinary cost contingency.

The approval allows GWA to finalize the JMI Edison purchase and begin replenishing deep‑well spare parts stock to support island‑wide water production and maintenance.

The commission also noted that earlier solicitations had been rescinded because of protests and that the revised IFB had been structured to increase competition and reduce unit pricing.