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Assembly notified of $2.21 million pump purchase for KFRC; $19,500 installation to be done under sole-source manager approval
Summary
The assembly was informed that the borough had purchased five new seawater pump assemblies for the Kodiak Fisheries Research Center for $2,208,908.45; installation will be performed by Industrial Pump Alaska under a sole-source justification for an estimated $19,500 to ensure warranty coverage and phased work to avoid operational disruption.
Staff notified the Kodiak Island Borough Assembly on April 24 of a prior purchase of five new seawater pump assemblies for the Kodiak Fisheries Research Center (KFRC) totaling $2,208,908.45 and of a planned installation by Industrial Pump Alaska (IPA) for an estimated $19,500. The notice was made under the manager’s authority (section 3.30.02, limitation of manager's authority), and staff said the installation choice was sole-source to preserve the manufacturer’s warranty and for efficiency.
What staff told the assembly: Staff explained that the March purchase authorized the pumps but did not include installation. IPA inspected the pumps at no charge and proposed a phased mobilization/demobilization to replace pumps 3 and 4 first (currently out of service), then return to replace pumps 1 and 2 to avoid operational interruptions. The installation estimate includes crane and subcontractor time; staff characterized the $19,500 figure as an estimate and noted contingency language in the contractor’s quote of $1,200 per day for extended work.
Procurement and warranty rationale: Staff said IPA is the authorized distributor for the assemblies and that using IPA will protect the warranty; facility staff have historically performed similar work but the contractor offered phased mobilization and warranty alignment. Assemblymember Ryan Sherritt queried whether other certified installers exist; staff acknowledged other qualified installers exist but said IPA was the lowest-cost alternative identified that also provided the phased schedule and warranty protection.
Technical, operations and disposal details: Deck-level discussion covered bearing life and pump sequencing. Staff said the pumps should be operated lead/lag (rotation among units) to extend bearing life and that facilities staff would be trained during installation. The borough retains first right of refusal for removed pump materials for potential remanufacture; staff said two existing pumps are in service (one with vibration) and they hope to remanufacture spares. There is no SCADA control for KFRC; operation will be by borough facilities maintenance staff with simple start/stop and soft-start controllers.
Why it matters: The pump assemblies are a major capital purchase that addresses continuing reliability issues in the KFRC seawater system. Assemblymembers raised procurement and lifecycle concerns, including the quoted bearing life, disposal/core-charges for removed pumps, and potential cost creep from daily mobilization rates.
Next steps: Staff will proceed with IPA installation under manager-authority notification, monitor costs and schedule, and train facilities personnel. Project manager Cody Allen is the on-site contact.
Ending: The assembly received the notification and asked staff to monitor costs, clarify disposal/core charge details and tracking, and report back if final installation costs materially exceed the estimate.
