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PUC approves combined GWA ultrasonic‑meter contract with Landis & Gear; single‑bid concern noted
Summary
The PUC approved GWA’s petition to combine two ultrasonic‑meter purchase orders into a single IDIQ contract with Landis & Gear Inc., covering roughly 2,445 meters and an estimated combined contract value of about $1.3–$1.6 million; the ALJ and staff noted the procurements drew only one bidder and that some larger meter prices were above median.
Legal counsel reviewed GWA docket 253 and recommended the commission approve GWA’s petition to combine two prior purchase orders into an indefinite delivery/indefinite quantity contract with Landis & Gear Inc. The combined contract will cover small and large ultrasonic water meters; counsel summarized quantities and pricing and said the combined contract value (including a pending requisition for additional large meters) would be roughly $1.6 million.
Counsel noted that the small‑meter purchase order covered 2,000 units (about $22 each) and the large‑meter solicitation totaled about $991,000 for a set of assorted sizes; an additional requisition for 57 large meters was estimated at $254,034. That would bring the combined inventory to about 2,445 ultrasonic meters. The legal analysis found the overall cost reasonable and prudent given GWA’s operational dependence on accurate metering and the indefinite‑quantity structure permitted by procurement law.
Commissioners and staff discussed procurement competitiveness: the procurement attracted only one bidder for each solicitation, and counsel observed that absence of competing bids can affect pricing for certain large sizes. GWA operations staff explained the practical reasons for combining the contracts—avoid procurement delays and maintain inventory for operations including replacement of production meters and a planned AMI conversion—and confirmed an internal request to self‑limit contingency to 10% (below the 20% threshold in the contract review protocol).
Commissioners asked about inventory management, meter lifespans and whether the meters will be used on production (deep‑well) meters; GWA staff said ultrasonic meters have no moving parts and vendors estimate 15‑plus years of service for larger ultrasonics, and that some newly purchased units will be used on production wells per consent‑decree work. GWA also said prior suppliers (identified in the record) declined to sell after earlier litigation and product failures, which contributed to the limited bidding pool.
The commission approved the petition to combine the purchase orders and adopt the proposed order, including the 10% contingency limit requested by GWA; the motion passed unanimously.
