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Ames seeks to order three RICE engines and a transformer as part of $192M AMERC project; staff recommends Wartsila
Summary
Staff said the Ames Municipal Energy Center is a roughly $192 million program; next week council will be asked to approve a ~$2.3M transformer purchase and a recommendation to award a ~ $75M equipment contract for three large dual‑fuel RICE units (staff favored Wartsila), citing long lead times and conservative financing analysis.
Ames Electric Services staff told council they will ask next week for authorization to order critical long‑lead equipment for the Ames Municipal Energy Center (AMERC) — a 54‑megawatt buildout of three reciprocating internal combustion engines (RICE) and associated transformers — part of an overall project budget estimated at about $192,000,000.
"Next week... we're coming to council asking for two things: a roughly $2.3 million purchase of a transformer, and approval to put the engines on order," said the lead presenter (Agency staff). Staff said engine and transformer deliveries have 30+ month lead times and that vendors had validity windows for pricing and manufacturing slots that expire at the end of the month.
Staff described an RFP process that yielded two responsive bidders — Wartsila and Everlance (Evolence) — and a detailed evaluation matrix including heat rate, emissions, delivery schedule, fuel consumption, noise, and life‑cycle service costs. Staff reported a staff recommendation to contract with Wartsila North America and noted that Wartsila's all‑in equipment and delivery price (including certain auxiliary items) was about $75.3 million for the reciprocating equipment, while the transformer purchase bid came in at about $2.3 million (well under an earlier $4.8 million engineer estimate).
Staff cautioned the council about large, near‑term payments in vendor proposals and presented options to mitigate vendor insolvency risk (discussed separately). The council did not take action tonight; staff said the contract approvals will be on the regular council agenda next week.
