Meeting Date:           September 13, 2010


From:                          Mike Thornton, Purchasing Manager


Subject:                      Purchase request 42042 to Filtration Solutions, Inc. for a transformer dehydration/dry-out system



Staff Recommendation:

Staff recommends approval of purchase request 42042 to Filtration Solutions, Inc. in the amount of $55,250.00 for a dehydration/dry-out system for use at the Electric Department transformer shop.



The purchase of this equipment is required in order to minimize the moisture levels in oil based high voltage electrical equipment.  High moisture level in oil filled equipment is the leading cause of equipment failure and reduces the useful life.  It is extremely important to minimize the moisture levels in this equipment.  The dehydration system will help prolong the life of all oil filled equipment as well as maintaining the dielectric strength of bulk oil stored by the transformer shop.


The portable unit can be mounted on a small trailer and moved to any location where it is needed.  It automatically analyzes the oil, determines how long to run the process, runs the dehydration cycle unattended, runs a filter re-dry cycle and repeats the process until acceptable results are obtained.  The system will then automatically shut down when the processing cycles are complete.   


On April 26, 2010, the Purchasing Division issued Bid #100221 for Purchase of a Transformer Dehydration/Dry-Out System for the Electric Department transformer shop.  On May 11, 2010, the Purchasing Division received three  bid responses.  After reviewing the bids, the Electric Department chose the second low bidder, Filtration Solutions, Inc. as the vendor providing the best unit and offering the lowest long term operating costs.


Summary of Bids

Company Name / Location

Bid Amount

Velcon Systems

c/o H.C. Warner, Inc.

Jacksonville, FL


Filtration Solutions, Inc.

Lake Wylie, SC


Baron USA, Inc.

Cookevill, TN



The Electric Department recommends awarding the bid to Filtration Solutions, Inc., the second low bidder.  The Electric Department evaluation of the low bid unit from H.C. Warner, Inc. shows the unit from H.C. Warner, Inc. has substantially higher long term operating costs.


Regardless of the unit used, following each dehydration cycle the filters in the unit must be dried or replaced with dry filters.  The unit from H.C. Warner, Inc. requires the filters to be replaced following each dehydration cycle.  The cost of the filters is approximately $2,000.  The Trojan unit from Filtration Solutions, Inc. has a unique filter regeneration cycle that dries the filters out following each dehydration cycle.  The filters in this unit will last approximately 2 years depending on the oil temperature and amount of moisture removed.  When the Trojan filters are replaced their cost is $650.00 for a pair.


The amount of time to recover the additional $20,850.00 in the purchase cost for the unit from Filtration Solutions, Inc. depends on the number of dehydration cycles performed but is estimated to be 18 months.  Each dehydration cycle after the 18 months would be a direct cost savings of $2,000 per dehydration cycle when compared to the lower cost unit from H.C. Warner, Inc.


Purchasing staff has reviewed the bid responses for conformity to the terms, conditions and specifications of the bid as well as costs and agrees with the recommendation of the Electric Department.



1.  Approve purchase request 42042 to Filtration Solutions, Inc., or:

2.  Such alternative action as the Commission may deem appropriate


Fiscal Impact

The purchase amount of $55,250.00 is budgeted and available in the account listed in the 2010 fiscal year.


Submission Date and Time:    9/16/2010 12:11 PM____


Department: ___Electric Department___

Prepared by:  __Armida Jones_______                     

Attachments:         Yes____   No __X__

Advertised:   X__  Not Required ______                     

Dates:   ___4/26/2010_______________                     

Attorney Review :       Yes___  No ____



Revised 6/10/04


Reviewed by: Dept. Head ________


Finance  Dept. _________JB_______                                     


Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________


Account No. _001-1099-531-6410___


Project No. ___410008 ___________


WF No. ______WF0646452/1_____


Budget  ______$55,250.00________


Available _____$55,250.00_________