Report Prepared by: Bill Osmer, Public Works Manager
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements and Approve Purchase of Ignition SCADA software, for the Wastewater Treatment Plant not-to-Exceed $73,305.70
REPORT IN BRIEF
Considers waiving the City’s competitive bidding requirements pursuant to Merced Municipal Code Section 3.04.210 due to standardization and approving the purchase of Ignition software for the new SCADA System for the Wastewater Treatment Plant.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code Section 3.04.210 due to standardization of equipment; and,
B. Approving the purchase of the Ignition software for the new SCADA from Inductive Automation in the amount 73,305.70 for Fiscal Year 2025/2026; and,
C. Authorizing the City Manager to execute the necessary documents or contracts that are approved as to form by the City Attorney, and/or Purchasing Supervisor to issue purchase orders.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
City of Merced Charter Section 3.04.210 - Exemptions from Competitive Bidding:
Except as otherwise provided in this chapter, competitive bidding requirements for purchases in excess of twenty-five thousand dollars ($25,000.00), the "bidding threshold”, may be waived with the approval of the city council. Waivers may be authorized for, but are not limited to, cooperative purchasing in conjunction with other governmental entities, professional services, annual service or supply agreements, or purchases necessary for standardization on particular types of equipment. The bidding threshold shall be adjusted for inflation utilizing the same index and methodology as the bidding threshold in Section 3.04.080 of this code.
CITY COUNCIL PRIORITIES
As provided for in the FY 2025/2026 adopted budget.
DISCUSSION
The City of Merced Wastewater Treatment Plant (WWTP) plans to use Inductive Automation for the replacement of the Supervisory Control and Data Acquisition (SCADA) system and Programmable Logic Controllers (PLC). The updated software system will communicate more efficiently with the newly installed hardware. Inductive Automation is the sole provider of the Ignition software platform. Ignition is the only practicable software solution capable of meeting the project’s specific technical and operational requirements. No alternative software platform or vendor can provide the required functionality without significant system redesign, reconfiguration, and rework.
Ignition software serves as the core platform for the SCADA upgrade project. The consultant retained for the PLC-SCADA upgrade developed the project scope, design, and implementation approach entirely around the Ignition platform for the WWTP
SCADA application.
The City’s Water Department has successfully used Ignition software since 2012. Standardizing SCADA software across the Public Works Department enhances operational efficiency, simplifies system maintenance, and reduces long-term support and training costs. Conversely, integrating multiple SCADA platforms-such as combining Ignition with competing systems like Wonderware or Rockwell-can introduce operational inefficiencies, increase the risk of errors, and create potential cybersecurity vulnerabilities within utility operations.
For these reasons, the Public Works Department requests that City Council waive competitive bidding requirements to allow the direct purchase of Ignition software for the Wastewater Treatment Plant SCADA and PLC project.
Purchase authority over the threshold needs to be approved by the City Council. These supplies and services will exceed threshold of the City Manager’s authority and are needed for continuity of operations. The recommendation allows the City Manager to execute the contract if the City Attorney has approved as to form.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed; funding is available within Fund 6000-Wastewater Operations Sewer Division FY 2025/2026 adopted budget.
ATTACHMENTS
1. Inductive Automation quote