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Upon bid opening, DGR conducted due diligence with both Bidders. Such due diligence <br />confirmed the delivery date for Bidder 1 later than September 1, 2026. Therefore, Bidder 1 was <br />rejected for failure to meet the minimum bid requirements. DGR's due diligence affirmed that <br />Bidder 2 could deliver a unit manufactured and assembled in the United States, before the <br />required delivery date, and at the price in the bid. <br />Because of this difference in delivery time and the indirect costs and system load <br />considerations associated with extending the construction schedule, based on the bid <br />requirements as solicited, it is in the best interest of ERMU and the project to award the bid to <br />WEG Transformers USA, LLC for $1,535,200. The recommendation letter from DGR Engineering <br />is attached. <br />FINANCIAL IMPACT: <br />Previous project estimates included $1,500,000 for the transformer. Staff are working with DGR <br />and WEG to agree to payment terms that would be within the 2024 budget, with the <br />remainder of the transformer costs paid in 2026 and will be reflected in the 2026 budget. <br />ATTACHMENT: <br />• DGR Recommendation of Award of Contract - WEG <br />Page 2 of 2 <br />