226-1999 LTC
CITY OF
MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER
TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
L.T.C NO. 226-1999
LETTER TO COMMISSION
DATE:
December 1, 1999
TO:
Honorable Mayor and ity Commission
FROM:
Sergio Rodriguez
City Manager
SUBJECT:
WATER AND WASTE WATER PUMP STATION UPGRADES, BID NO.
99-97/98
On February 3, 1999, the City Commission approved the award of a construction contract to Felix
Equities, Inc. (FBI), in the amount of $17,692,568 for pump station upgrades. The bid documents
contained a requirement that the contractors bidding the project identify the pump manufacturers
they intended to use in the bid form provided. FEI identified Ingersoll Dresser Pump Company
(IDP) as their choice in pump manufacturer.
On May 12, 1999, FEI sent a letter to the City's consultant, Camp Dresser & McKee, Inc. (CDM),
requesting approval on a change of pump manufacturers from IDP to Fairbanks Morse Inc. (FM).
On May 14, 1999, FEI also requested changing from centrifugal to submersible pumps which was
also not noted on their bid documents. CDM responded to both requests and stated that they as
consultants could not recommend either change and that the City would not entertain them.
FEI continued to request approval for the pump manufacturer change and stated that they had
significant concerns about their relationship with the IDP vendor and the manufacturer. FEI
contends that the vendor did not provide a complete bid as required by the contract documents and
that this was not clear at bid time. The vendor has now asked for additional dollars to provide the
portion of the bid documents which FBI claims was left out. FEI did not pursue further the change
to submersible pumps.
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City staffhas had numerous conversations and several meetings with FEI and CDM on this matter.
FEI was asked to provide explanations and support information on why the City should contemplate
and approve the requested pump manufacturer change.
The City Attorney reviewed the contract conditions to insure that FE! was not violating any of its
provisions and also to determine if the contract allowed for the requested change, in view of the bid
day requirement for identification of pump manufacturers. The City Attorney has determined that,
pursuant to Supplemental Conditions Paragraph 6.8.1 of the bid documents for Bid No. 99-97/98
(the Bid), the change is acceptable. This paragraph reads as follows:
6.8.1 CONTRACTOR shall not employ any Subcontractor, Supplier or other person or organization
(including those acceptable to OWNER and ENGINEER as indicated in paragraph 6.8.2), whether
initially or as a substitute, against whom OWNER or ENGINEER may have reasonable objection.
CONTRACTOR shall not be required to employ any Subcontractor, Supplier or other person or
organization to furnish or perform any of the Work against whom CONTRACTOR has reasonable
objection.
The City has also exchanged correspondence with IDP representatives where they have expressed
concerns about the proposed manufacturer change. The City, though, reserves the right to make any
decision which is beneficial to the citizens of Miami Beach and to the system affected by this Bid.
The City, therefore, has informed IDP, that any decision made will comply with the letter and intent
of the contract conditions.
A meeting was held on November 8, 1999 in order to bring closure to this matter. Representatives
from FE!, City staff, the City Manager's office and the City Attorney's office were present. After
further discussion, the City presented their final position and asked FEI to review it and either accept
it or perform the work under the original bid documents using the identified pump manufacturer.
The City's conditions are as follows:
1. The pump manufacturer change from IDP to FM will be acceptable to the City.
2. The change in Variable Frequency Drive will not be acceptable and the manufacturer noted
in the original bid documents shall be used.
3. FEI will provide the City and CDM a comprehensive hold harmless/indemnification
agreement which will protect the City from any future litigation on this matter. The language
on this agreement will be provided by the City Attorney's office.
4. FE! will provide a letter stating that their letter dated October 22, 1999 is being rescinded and
that FEI will accept the proposed time extensions with no additional escalations costs.
2
5. FEI will execute Change Order No.1 as submitted by the City's Consultants which provides
for time extensions to the project due to legitimate delays but does not allow for any
extended overhead or escalation costs.
A letter responding to FEI's acceptance ofthe City's conditions has been provided together with the
Hold Harmless/Indemnification Agreement for their review and signature.
The project continues to progress, notice to proceed was given, taking into account the delays
encountered in obtaining all the appropriate permits and also the securing of a staging area for the
contractor. FEI has provided submittals to CDM and has also moved into the staging area and
placed the necessary construction trailers on site. Permits for Stations 2,3,4,5,6, 7, 13, 14, 18,28,
and 29 have been obtained. Other stations are in the process and should be permitted shortly.
Attachments
c: Mathew D. Schwartz, Assistant City Manager
Murray Dubbin, City Attorney
Raul Aguila, First Assistant City Attorney
Julio Grave de Peralta, Public Works Director
Ricardo Mendez, Assistant Public Works Director
Jorge Chartrand, Capital Projects Coordinator
F\ WOa~CHA TRANDlPUMPST A TlPUMPSL TC WPD
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99 NOV I 8 AM II: 32
FELIX EQUITIES,'..INC~\~"~~:f.:r
FLORIDA OFFICE:
5100 29th Court
Vero Beach, FL 32967
Phone: 561-569-0606
Fax: 561-569-0065
Utilities - Pipeline - Highway
General & Heavy Contractors
MAIN OFFICE:
P.O. Box 650
Route 202 & Lovell Street
Lincolndale, NY 10540
Phone: (914) 248-8500
Fax: (914) 248-5202
November 12th, 1999
Mr. Jorge E. Chartrand
Capital Projects Coordinator
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 333139
RE: Bid No. 99-97/98 City of Miami Beach Water & Wastewater Pump Station Upgrades
Subject: Pump Manufacturer Change
Dear Sir:
In our meeting of November 8th, 1999, we discussed the following items. We have agreed
to all terms and conditions as discussed between all parties. We have listed all items that we
discussed in our meeting and for which we now all mutually agree:
We will be allowed to switch pump suppliers from Ingersoll-Dresser (lOP) to Fairbanks Morse,
Inc. (FM). As a condition of that switch we will insure that Allen Bradley will furnish the drives,
as previously circled on Bid day.
We will provide a letter of indemnification to the City of Miami Beach, in the form as provided by
the City of Miami Beach's counsel. The indemnification letter shall include verbiage that will
confirm our recession of our October 22nd, 1999 letter requesting compensation for the effects
of the time extension granted in Change Order Number One (1).
We will execute Change Order Number One (1).
Please confirm our understanding and verification of the above issues. We look forward to working
with you on this project and hope that these issues can be resolved within the next couple of days.
s,lncere'L
NiJlas J. Fiduccia
Vice President - Construction
Florida
CITY OF
MIAMI
BEACH
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CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER
TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
October 18, 1999
Mr. Arthur Fruchtman. Vice President
Ingersoll-Dresser Pump Company
World Headquarters
150 Allen Road, P. O. Box 810
Liberty Comer, NJ 07938
RE: BID NO. 99-97/98, WATER AND WASTE WATER PUMP STATION UPGRADES (The Bid)
Dear Mr. Fruchtman:
The City is in receipt of your letter, dated October 6, 1999, regarding your concerns on the request by Felix
Equities, Inc. (FEI) for a change in pump manufacturers in the subject project. We continue to discuss the
matter with FEI and have requested additional information on the reasons which would justify the change.
The City is also reviewing the Contract Documents to ascertain whether the request for a change complies
with the conditions of the contract.
At this time, no decision has been made on this matter. As soon as FE! provides the information requested
by the City, we will proceed to make a decision. At that time, all parries involved will be informed. The
City, though, resen,es the right to make any decision which is beneficial to the citizens of Miami Beach and
to the system affected by this Bid. Rest assured, that any decision made will comply with the letter and
intent of the contract conditions.
I f you have any further questions on this matter, please contact Jorge E. Chartrand at 305-673-7080.
odriguez
C . Manag~r
,~O)
SR\MDS\JGdPIJ .
c: Matthew D. Schwartz, Assistant City Manager
R:lUl Aguila, First Assistant City Attorney
Julio Grave de Peralta. Public Works Director
Ricardo Mendez, Assistant Public Works Director
Michael Rath, Procurement Director
Jon Goldman, Camp Dresser & l\kKee. Inc.
F \\VORK\SALLCfIA TR.\ND\PL~IPST.\ r INGDRESS WPD
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CDII Camp Dresser &:McKee Inc.
...... aoo IrtcRIIMnue. 8I.M 71 0
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....
R-97%
May 27. 1999
Mr. Sam Akrouk
Project Manager
Felix Equities Inc.
7305 We.qt 1Umple Road, Suitt! ?09
Coral Springs. Florida 3306~
Subject:
City ofMjami Beacb
Water & Wastewater Pump Stations Upgrade
COM Project 9381-002
Schedule ofSuppllers
Dear Mr. Alaouk:
This is to acknowledge receipt of Felix Equities, Inc. (FBI) Letter No.13, dated May 12,
1999 regardiug the "Schedule of S~plic:rs". We have the fOUQWUli COUlWCu13;
· We note that the several of the named suppliers differ from suppliers
indicated in the Contractor's Bid Form.
· Section 00100 2.15.C requires the Contractor to identify all major
suppliers within 30 days of the Notice of Award. Section 01600
paragraph 1.03.B requires the Contractor to identify aU major suppliers
within 30 days of the Date of Agreement.
· FE! failed to submit the required list within either the above referenced
time pammctcrs.
· Section 01600 1.07.C prohibits Substitutions after the 30~y limit.
CDM referred this non-technical issue to the City as an indirect request for deviation to
the above referenced Contract Requirement The City's response was to disallow any
deviations from the suppliers circled in the Bid Form. .
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8503866691
06-07-99 03:45PM P002 #31
.~. 7.1999 3: 3:PM
CItl T~
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au. Camp DresEr&.Mcl<ee Inc.
Mr. Sam Akrouk
May 27, 1999
Page 2
If you have any questions regarding the above, feel free to call.
Very truly yours,
CAMP DRESSER & McKEE INC.
~c!.~~~.
Principal Engineer
JEC/km
FUe:93 81-21 titi7 -002
cc: W. Reddick, eMB w/cllclosure
=lanOOJO.lcr
R-97X
9503866691
NO.61a7 P.3
06-07-99 03:45PM P003 #31
JUN.15.1999 :0:57~M
NC.953
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FELIX EQUITIES, INC.
FLORIDA OFFICE
7305 West Sample Road
Suite 209
Coral Springs, Florida 33065
Phonc~: (954}-755.3S1S
Fax: (954)-755-8119
Utilities - Pipeline - General,
Heavy & Highway Contractors
MAIN OFFICE
P,O, Box 650
Route 202 &. Lovell Street
Lincolndafe, N.Y. 10540
Phone: (914) 248-8500
Fax: (914) 248-5202
5-14-99
Yir. James E. Crane Po::.
CJmp Dresser & .McKee Inc.
800 Brickell Ave. Suite iIO
~ F1. 33131
Letter'# 2588-016
Ref.: City of}.ofutmi Be:lch Water & Wnstew<:lter pwnp sutian upgrnde.
Sub.: Submersible Pumps proposal.
De:rr Mr. Cr:m.e,
Pursuant to our discussions of May 6th, 1999, we respeCtfully request that your firm
present our proposal concerning submersible pumps to the Owner. We appreciate your input
regarding our concerns for the centrifugal pumps, as we previously discussed and have
addressed in writing, see Felix Equities, Inc. letter #014, copy attached.
As we mentioned in the meeting Felix Equities, be. seeks your support to allow our
:irm to ?rovide the Submersible pumps in lieu of the Centrifugal pumps for this job. We
believ~: that the Submersible pump package is more suited w this particular application, due to
it's decreased maintenance costs and operability in stonn surge or flooding conditio ns.
As stated in our May 6th, 1999 meeting, we would require an increase to our contract
price in the amount of $ 250,000.00, which would also include the Extended Warranty. We
aclc..'1owledge the Owner's delivery and appro va; delay concerns, and in order to alleviate
these concerns, we offer the following:
\Ve will order the submersible pumps for the entire project upon favorable review
and approval of shop drawings
We will process a change order for processing, after pumps are ordered, and seek
the Owner' 9 approval at our own risk, as to being ab Ie to receive further
compensation in the amount of $ 250.000.00
Q{QrG.!-J.u, 3D
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JUN.15.1~~~ 10:58AM
NO.953
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We also acknowledge the Owners maintenance concerns, and in orderto alleviate
thesei concerns, we have requested USFilter/EM:U Products to prepare the anached lener
addressing the following Items.
I
I
1- A lis! of Autl:orized repair centers in the state of Florida is indicated.
2- Loaner pumps, available at no additional cost to the Owner, will be placed
in USFilter!Ey[(J warehouses in both Florida and Georgia ready for Owner
use at any time.
3- 1JSFilter/EMU will supply any special tools required to service the pumps.
4- USFilterlEYflT will supply Training for the maintenance personnel at
Miami Beach.
We realize that time is of the essence, and ask for an expeditious respond. Again, we Tha:::k
you f~)r your time, and look forward to your respond. Should you require any additional
information do not hesitate to contact our office.
VerY Trulv Yours
. I' ,
)t~~
I
Sam 1Uaouk
Proje~:t Manager
cc: Walter Reddick (City of Miami Beach)
I
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JUN. 15. 1999 10:55AM
NO.953
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FELIX EQUITIES, INC.
FLORIDA OFFICE
7J05 West Sample Road
Suite 209
Coral Springs, Florida J3065
Phom~: (954)-755-3515
Fax: (954)-755-8119
Utilities. Pipeline - General,
Heavy & Highway Contractors
MAIN OFFICE
P.O. Box 650
Route 202 &. Lovell Street
lincolndale, N.Y. 10540
Phone: (914) 248-8500
Fax: (914) 248-5202
.5-l:-9~)
Mr.lar.les E. Crane P.E.
c.unp Dresser & McKee Inc.
800 Brickell Ave. Suite 710
Yfuuni. R 33131
Lerrer # 2588-013
Ref.: City of Mbmi beach Ware:- & Wasrewarer pump starion upgrade.
Sub.: List of Suppliers
Dear ~lr. Crane,
Following you wiil find our list of suppliers for the above-mentioned job, pLease
compa.re this lis! with the one supplied to the Owner earlier with the bid documem:.
Should you have any questions do not hesitate to contact our office.
SCHEDULE OF SUPPLIERS
lTE:YI
EQUIPNIE:N"T
ITE"\1 OR M.<\ TERIAL
Sl:l'PLIER
1- Ductile Iron Pipe U.S. Pipe
2- Centrifugal Water Pumps Fairbanks-Morse
3- Centrifugal Wastewater Pumps Fairbanks-Morse
4- Air Release Valves Val-Matic
5- Bunerfly Valves DeZurik
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JUN.15.1999 10:56RM NC.953 P.3
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6- Gate Valves Clow
7~ Plug Valves DeZurik
8- Check Valves
A- Slant Disk APCO
B- Swing Clow
C- Rubber Flapper AFCO
,
9- Diesel Engine Driven Generator Cummins
: 0- 480 Volt Switchgear Cutler-Hammer
11- 480 Volt !vfCC Cutler-Ha:::mer
'.12- Variable Frequency Drive Cutler-Hammer
13- Instrumentation System Supplier Diversified Engineering,
Inc.
CoU!:(:sy Submittal
14- Diesel Fuel Tanks Eco Vault
Very Truly Yours.
~, -
/ Sam Akrouk
Project ~cinager
cc: Wa.1ter Reddick (City of~fiar.1i Beach)
2
'JUN.1S.1999 10:57AM
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NO.953
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lID u;; (g u;; 11 W u;; 1
~ MAY 1 8 1999 ill)
BY: ......-.--...-......
FELIX EQUITIES, INC.
FLOR./DA OFFICE
7305 West Sample Road
Suite 209
Coral Springs, Florida 33065
Phon,~: (954)-755.3515
Fax: (954}.i55.S119
Utilities.. Pipeline - General,
Heavy & Highway Contra~ors
MAIN OFFICE
P.O. Sox 650
Route 202 &. Lovell Street
Lincolndale, N.Y. 10540
Phone: (914) 248-8500
Fax; (914) 248.5202
5-l2-99
Mr. James E. Cr.me P.E.
C:unp Dresser & McKee Inc.
800 Brickell Ave. Suite 710
MiJrni. FL 33 13 I
Letter # 2.5 88-0 14
Ref.: City ofy1i::ur..i be:lch W:lter & W:lSte\\'.:l.ter pump sr:nion u?g:":lC:e.
Sub.: Request Ch.:mge of Pump Suppliers.
De:lr ~1I. CrmJe,
We would lil~e to inform you that Felix Equities Inc. will no longer be using Ingersoll-Dresser
pumps for above referenced project as outlined in our bid list of suppliers. Due to the fonowing:
We at FelL" Equities, Inc. strongly believe that Cmer & Verplanck (C&V) h:lS been a non-
responr.ive bidder. We ~pologize for this late finding, however this conclusion arose mer we were
informed that the se:1! water system 15 not included in C&V's original base bid.
At bid time C&Vprovided to Felix Equities, Inc. :1 complete scope of work for rhe Non-Clog
CentrirJg:>.1 pumps base bid. Also C&V provided the "Mech~cal Se:lls":l.S an :11ternate 'IN LIEU'
OF" the seo.1 water base bid item. C&V scope made NO E'(CLUSIONro the se:ll w~ter.
C~:y.,no~ :lre of the opinion th:lt seo.1 water W:lS not included in their ~ase b_id, .....ve feel that
they ;JIcwrong.' TIley provided mec~ic:>.l se:ll as an J.!tenute to the sc:U W:ltcr, this concludes tlut the
sC:ll W<lter were autom:lricilly inchided in the base bid. Secondly the contr:lct specific:ltiol"'.5 JIe cle:lr
and st:lIeS th:lt mech::mic:lI se:lls are to be provided in lieu of seJ..l. wJ.ter system. S pecific:ltion does not
allow i()r :my misinte.rpretJ.tion. One pump supplier C:J.n. not simpty provide one p:JIt of the pump
puzzle ;J.nd exclude the other:
Atthis e:lrly s~ge of the job, Felix Equities, Inc. IS troubled by C &V' s line of corn.munic:mon.
We JIe fe:lrful th:n other misimerprct.1tions might surf:lce if we use C&V for this job. Aln:Jdy other
~}j'C.. 029
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JUN.1S.1999 10:5?AM
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Drive & Pump suppliers :u-e conveying signs ofwJ.ming to us :lbout Allen-Br~ley VFDs scope
holdiI'lg n\1mber of deviations (see enclosed). Please note th<lt C:uter & VerpJ:l.nck pl:m to use Allcn-
Br;dl,:y 'for. th~ VFDs. If these problems surfuce during dle submittll process they will C::lUse delays in
Lie approv::u process :md therefore C::lUse :l job del:ly.
L"1 closing, having known the abov~ :11: bid rime Felix Eqt.:ities, Inc. would never h~ve circled
bgersoll-Dresscr in our list of suppliers. We know f,OW t::at it will be detrirnen:.:.l :0 our perfor.:':.:J.:'.c:
on thi:; job, should we .:J.llow (mer & Verpl:nck to supply these pumps.
Ple:lSe note th:l.t Fclii" Equities, Inc. is capable of furnishing ~he Non-Clog C~ntrifJg:lI pumps
from ~oth~ specified pump supplier listed in tlle contract documents, :md will do so :lr no cost
clmngc to the owner.
Our :5rst choice of Pump suppliers is F:lirb;mks Morse pumps. However. should the O~:ncr
prefer Auror:l pumps, we c;m provide Auror.:J. pumps :It no COSt ch:mge eirher. llliJ.I'Je you for your
cooper::don in r:us rrW.rr~r
Should you require :my :J.dditioIla! inform::nion do nor hesit:.rc to con!:lct cur of5ce.
Very Truly Yours,
.&
Sam Akrouk
ProjeC1: Manager
cc: W..lter Reddick (City of~fiami Beach)
'1
SECTION 00450
SCHEDULE OF SUPPLIERS
The Contract Documents are based upon the equipment or products available from the Suppliers denoted
as "A", "B", etc. Provision will be made in the Contract Documents for alternate suppliers whose
equipment or product may be deemed equivalent in quality (see Paragraph 6.7 of the General Conditions).
However, the Bidder must indicate in his Bid which supplier the Bidder intends to use for each item of
equipment listed on this form by circling one of the listed suppliers.
if the Bidder desires to propose one or more alternate suppliers the Bidder may write in the name of such
alternates in the spaces provided in Section 00460, but the Bidder must nevertheless also circle one of the
listed suppliers. Wherever an alternate supplier is proposed, the Bidder must insert the amount to be
deducted from the Contract Price if the alternate supplier is eventually approved after the effective date of
the Agreement.
If the proposed alternate supplier is determined "not equivalent" by the ENGINEER, the bidder must use
the circled supplier. If the Bidder fails to indicate which listed supplier the Bidder intends to use if an
alternate is rejected, the Bidder must use the supplier listed as "A". Also, if the Bidder circles more than
one listed supplier, he must use the fIrst supplier circled.
The deductive amount specified for alternate supplier will not be used in detennining the successful
Bidder. Alternates will be evaluated only after the effective date of the Contract.
SCHEDULE OF SUPPLIERS
EQUlPMENT
ITEM ITEM OR MATERIAL
SUPPLIER
BASE BID "C" & "S" BASE BID "S" ONLY
1. Ductile Iron Pipe
A. U.S. Pipe
B. American
2. Vertical Turbine Pumps
(Section 11214)
A.. Aurora
ro Ingersoll Dresser
C Fairbanks-Morse
A. StirlinglPeerless
3. Centrifugal Water Pumps
(Section 11212)
A Aurora
([) Ingersoll Dresser
C. Fairbanks-Morse
4. Centrifugal Wastewater Pumps
(Section 11311)
~ Aurora
~ IngersollDresser
C. Fairbanks-Morse
Not applicable
5. Submersible Wastewater Pumps
(Section 11307)
Not applicable
A. Davis-EMU
6. Air Release Valves
Q APCO
9381-02\9/14/98
00450-1
s:\robon\jec\lklr
UN. 1':>~,_'CJ; :::>:lHIYj
~
NI..-.::i~.:i f-'.lo
i. Bum:r:ly V:ll\"C:.s
@
~
C
DeZuriJc
Hc::'_:- Pr:lc:
K=ys~cnc
V~-MJtic
8. G:l~e \i~ves
A. Ar.:::1c:m J~ling
B. M&E
C. Dress::"
@ Clow
@ D~ur.k
B K~s:one
9. Plug Valves
l~. ChcckVJ.!ves
A. S la."ni::g Disk
(;) A?CO
d~ @ V:ll ~J.:':::
3.
Sw.ng
A.
3.
C.
@
M&2
Goldo .A..."Jde':"Son
Clew
..~.:ne:i::....~ Da:!i::.g
!vfu=n~r
C. R~bbe:' Fl:I?~=
(9 APCO
II. Diesel t:':1~'"''' Driv~,
Gene:-ators
C.1 te:-p m:u-
Cummins
,.., 4.80 Volt S\\i:6ge::r
A.
~
@
C.
Cut!::--Emr..t:l.:::"
5 qu:II'e D
Ge:lc:al E1e-~c
13. 480 Volt Moter CCtltrol
C e:lte:' s
'A1 Cutler-H;]m.mcr
S. ~ar: D
C. C-==~ Ele:::ric
1~. Yariab:e Fr::qU::1CY Drives
A. CUIle:;-H3.l::l!nC'
B. Rcbicon
',;i';Y9;..,All?-B~d1=:, .
~ Dtve:-si:1::::i En~.ne::r..lJg7 Inc.
~Cu."":"y Controls Company.
C. ESQ Technology.
D. C1i Ccntrollnsi:rum:::::t be.
15. L::.st:"".lr.:enr..:l.con S ysr= S uppli:::
I:e:ns :lot liste::l ~er:: are c.::ve:-ed under the res?c=-..ive sp==i:1c:ltion sedans. f.":..::::: r::::::ip: of Bids,
CONTR.;CTOR may not substi:ut: any Suppli::- circled above exc::?" as pe.=it:e::l Uo."1d.e: the
Con1r.lct Doc:.r:n:ms.
9381-02.\91:4/98
00450-2
:~\l'CO"\\rCC\f'f"1'