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Council authorizes $3.71 million Unit 2 inspection and upgrade contract
Summary
The council authorized the City Administrator to execute a $3,709,975 service contract with Allied Power Group (APG) for Unit 2 major inspection and upgrade after staff presented recommendations from the 2024 electric master plan and the selection committee’s review of two proposals.
Gardner City Council authorized a service contract with Allied Power Group (APG) for a Unit 2 major inspection and upgrade in the amount of $3,709,975.
Staff said the 2024 electric master plan recommended upgrading generating units to improve summer availability and reduce the risk of units tripping because of lube‑oil temperature issues. Staff solicited proposals and received bids from APG and Sulzer; APG’s total proposal, including rotor‑exchange and cooler modifications, totaled approximately $3.7 million while Sulzer’s proposal (with some omitted line items) was roughly $2.8 million once comparable items were added.
“APG performed a nine‑stage hook fit in 2023, and staff was very impressed by the level of expertise and the flawlessness of their execution,” staff said, and the selection committee unanimously recommended APG for the turbine inspection and major overhaul.
Council moved and the City Administrator was authorized to execute the service contract. The motion passed on an affirmative voice vote. Staff said the APG scope and schedule are intended to complete the outage and upgrades before the summer of 2025 to improve unit reliability.
The authorization includes the upgrade scope, cooler modification and rotor options; exact component selections and timing will be set out in the executed contract and staff will report back on schedule and budget adherence.
