BOARD MEETING DATE: May 7, 2004
AGENDA NO. 11

Authorize Purchase of Extended Warranty Services for Radar Wind and Temperature Profiler

SYNOPSIS:

Over the past ten years, AQMD has purchased four radar wind and temperature profiler systems to provide upper air measurements in support of the U.S. EPA PAMS program and for air quality analyses, modeling and forecasting. After the initial warranty period for each system expired, AQMD purchased annual extended warranty services from the instrument manufacturer, Vaisala, Inc. to cover repairs and parts replacement. With the expiration of the initial warranty for the fourth system, the total cost for the extended warranties now exceeds $50,000. Staff recommends authorization of sole-source purchases from Vaisala, Inc. of extended warranties for: (1) the current fiscal year for the fourth profiler in the amount of $18,738 plus taxes; and (2) each of the next three fiscal years for all four profilers, pending allocation of U.S. EPA PAMS funding.

COMMITTEE:

Administrative, April 9, 2004, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Procurement Manager to issue a purchase order to Vaisala, Inc. for extended warranty services through November 31, 2004 for one radar wind and temperature profiler system at a cost not to exceed $18,738 plus taxes, bringing the total cost for the four profiler systems to $64,166.27 in FY 2003-04.
    
2. Authorize the Procurement Manager to issue purchase orders to Vaisala, Inc. in each of FY 2004-05, FY 2005-06 and FY 2006-07 for extended warranty services for four radar wind and temperature profiler systems at a cost not to exceed $65,000 per year, pending recognition and allocation of U.S. EPA PAMS Grant funds for this purpose.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In 1994 and 1996, respectively, AQMD purchased from Vaisala Inc. (formerly Radian/URS) Model LAP-3000 radar wind and temperature profilers for installation in Los Angeles County at the Los Angeles International Airport (LAX) and San Bernardino County at the Ontario International Airport (ONT). These instruments reduce the need for balloon-borne soundings and helped fulfill upper air monitoring requirements of the U.S. EPA PAMS program and data needs for AQMD air quality analysis, modeling and forecasting. In 1999, a third profiler was purchased for Riverside County. In 2002, a fourth profiler was purchased for Orange County. After the initial one-year warranty period for each system expired, AQMD purchased annual extended warranty services from the instrument manufacturer, Vaisala, Inc. to cover repairs and parts replacement.

Under the extended warranties AQMD can contact programmers, engineers and technicians within Vaisala’s Wind Profiler Business Unit for system analysis and operational advice and AQMD receives priority for response when further testing, part replacement or repairs are needed. The cost of all replacement parts and repairs are covered under the warranty. Some major electronic components in the profiler system, such as the radar beam steering assembly and the radar power amplifier, have a typical time-to-failure between three and five years of continuous service. This is likely shortened in harsh environments, such as the corrosive marine air of the LAX station. The warranty service assures that electronics, hardware and software problems will be resolved in a timely manner, without the need to separately obtain funding for individual tests and parts. This greatly reduces the instrument down-time. There have been several times when the cost to analyze and replace failed electronic components would have exceeded the annual cost of the warranty and the profiler would have been inoperative for a longer time period while cost estimates and purchase requisitions were prepared. Minor components, such as RASS diaphragms, fuses and battery backup systems, are also routinely replaced each year under the warranty.

On December 5, 2003, the Board recognized and appropriated U.S. EPA Section 105 Grant funds for the 12^th Year PAMS program (Agenda Item No. 7) and allocated $65,000 to continue the extended warranties for the PAMS upper air program. A purchase order was issued in January 2004 in the amount of $43,882.39 for the extended warranty services on the three operational systems, in order to avoid a lapse of service. Due to the expiration of the original warranty on the fourth system and with the final approval of a new profiler location pending in Orange County, it is necessary to obtain the extended warranty for that system as well. The total annual cost for the four extended warranties now exceeds $50,000, requiring Board authorization. Vaisala is currently the only company capable of providing repair parts and services on these instruments. Since Vaisala has exhibited unique expertise in providing troubleshooting, guidance and timely repair service through this extended warranty program, it is desirable to allow continuance of this coverage for multiple years.

Proposal

Staff recommends authorization of a sole-source purchase order to Vaisala for an extended warranty for the fourth profiler in the amount of $18,738 plus taxes, bringing the annual total for the extended warranties on all four profilers to $64,166.27, including taxes. Staff also recommends authorization to purchase the extended warranties for all four systems in each of the future three fiscal years, at a cost not to exceed $65,000 per year, pending appropriation and allocation of U.S. EPA PAMS grant funds for this purpose during each of those years.

Sole Source Justification

Section VIII(B) of the Procurement Policy Procedure identifies four major provisions under which a sole source award may be justified. This request for sole source award is made under provisions B.2.c: The desired services are available from only the sole-source based upon (1) The unique experience and capabilities of the proposed contractor or contractor team; (2) The project involves the use of proprietary technology; and (3) The contractor has ownership of key assets required for project performance. Since Vaisala Inc. is the sole manufacturer and commercial vendor of this radar instrumentation, they are uniquely experienced and capable of providing warranty services, repairs and replacement parts. Such service requires the use of proprietary technology and key assets that Vaisala has uniquely developed for work on these instruments.

Resource Impacts

Funds in the amount of $65,000 have been budgeted for the PAMS upper air warranties from the U.S. EPA Section 105 Grant for the 12th Year PAMS program and continued funding is anticipated for the 13^th, 14^th and 15^th Year PAMS. The optional funding increases for this contract are subject to the recognition and allocation of those funds in each of the next three fiscal years. AQMD reserves the right to renegotiate the contract amounts for the optional years based upon changed requirements and/or approved funds. Since this contract uses PAMS pass-through funds, it will not impact AQMD staff or fiscal resources.

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