Posting Language
Title
Authorize two contracts for 19% aqueous ammonia, required for the catalytic reduction systems to operate properly, for Austin Energy with Baker Services, Inc. and GC3 Specialty Chemicals Inc., for an initial term of two years with up to three one-year extension options in an amount not to exceed $1,210,000, divided between the contracts. Funding: $20,167 is available in the Fiscal Year 2025-2026 Operating Budget of Austin Energy. $242,000 is available in the Fiscal Year 2026-2027 Operating Budget of Austin Energy. Funding for the remaining contract term is contingent upon available funding in future budgets.
Body
Lead Department
Austin Financial Services.
Client Department(s)
Austin Energy.
Fiscal Note
Funding in the amount of $20,167 is available in the Fiscal Year 2025-2026 Operating Budget of Austin Energy.
Funding is available in the $242,000 is available in the Fiscal Year 2026-2027 Operating Budget of Austin Energy.
Funding for the remaining contract term is contingent upon available funding in future budgets.
Procurement Language:
Austin Financial Services issued an Invitation for Bids solicitation IFB 1100 AGM1006 for these goods and services. The solicitation was published on May 11, 2026, and closed on June 9, 2026. Of the seven offers received, the recommended contractors submitted the lowest responsive offers. A complete solicitation package, including a tabulation of the bids received, is available for viewing on the City’s website. This information can currently be found at https://financeonline.austintexas.gov/afo/account_services/solicitation/solicitation_details.cfm?sid=143951.
MBE/WBE:
This contract will be awarded in compliance with the City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program). For the goods and services required for this solicitation, there were no subcontracting opportunities; therefore, no subcontracting goals were established.
For More Information:
Direct questions regarding this Recommendation for Council Action to Austin Financial Services - Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. Respondents to the solicitation and their Agents should direct all questions to the Authorized Contact Person identified in the solicitation.
Council Committee, Boards and Commission Action:
September 14, 2026 - To be reviewed by the Electric Utility Commission.
Additional Backup Information:
The contract will provide bulk aqueous ammonia for Sand Hill Energy Center on an as-needed basis. Aqueous ammonia is used to reduce nitrous oxide emissions by converting it to nitrogen and water. Aqueous ammonia is required for the catalytic reduction systems to operate properly.
These new contracts will replace the existing contract, which expires August 24, 2027, but is being resolicited early because Austin Energy expects to exhaust the contract's remaining funding authorization by the beginning of year five. One of the recommended contractors, GC3 Specialty Chemicals Inc., is the current provider for these goods and services.
Without this contract, Austin Energy will not be able to meet federal and state air permit requirements, risking excess emissions and a potential unit outage.
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Contract Details: |
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Contract Term |
Length of Term |
Contract Authorization |
|
Initial Term |
2 years |
$484,000 |
|
Optional Extension 1 |
1 year |
$242,000 |
|
Optional Extension 2 |
1 year |
$242,000 |
|
Optional Extension 3 |
1 year |
$242,000 |
|
Total |
5 years |
$1,210,000 |
Note: Contract Authorization amounts are based on the City’s estimated annual usage.