Presentation for the recommendation to authorize the City Manager to execute a Letter of Intent with PROENERGY Services, LLC and/or its assignees for the Independence Power & Light Substation A Generation Project, RFP 21094.

Approval is recommended.

Independence Power & Light sought competitive bids in response to Substation A Generation Project Request for Proposal 21094. In response there were a total 6 bidders, 5 of which satisfied the minimum qualifications to bid and were evaluated and 1 which did not meet the minimum qualifications and was considered non-responsive. Through an intensive scoring and evaluation process, IPL staff, leadership, and external resources reached a unanimous consensus regarding the most cost effective, lowest price, and most qualified bidder per RFP requirements.

PROENERGY Services’ bid of $69,350,000 provided complete EPC (Engineer, Procure, Construct) services to deliver 2, LM6000 GE aeroderivative turbines (combined 84MW net capacity) with all supporting systems. This was the lowest capital cost, lowest NPV (Net Present Value), and most economical solution in response to the RFP.

Staff seeks City Council’s approval of a Letter of Intent which will enable IPL staff and leadership to further develop project specific details and reach a “best and final offer” from PROENERGY Services, LLC. Once PROENERGY Services, LLC and/or its assignees has finalized the details for the Substation A Generation Project, a Purchase Order with all appropriate financing solutions and options will be provided for City Council consideration.

Staff recommends City Council approval of a Letter of Intent for Substation A Generation Project with PROENERGY Services, LLC.

None at this time. Proposal as submitted has a projected cost of $69,350,000. Final proposal details and contract will be brought to Council for approval later. This will be a new appropriation separate from the approved FY22 budget.