CUC intends to take on repair of two engines

The Commonwealth Utilities Corp. has decided not to reissue an invitation to bid on the overhaul of two engines at Power Plant 1 after two companies were unresponsive. Instead, CUC plans to do the work itself, with some aspects of the job contracted out to other companies.

This is because Engines 5 and 7 may need more than just an overhaul, according to CUC executive director Antonio Muña.

“The overhaul might not be the remedy,” Muna said. “As they take it apart, there might be issues that need more than just an overhaul.”

The engines were last overhauled in 2003.

The utility company issued an invitation to bid in July, after it terminated the contract of the previous contractor, Guam-based DCM Group. DCM reportedly failed to repair the generators as required by the $5.1 million deal.

Last week Muña said the utility company did not get a responsive bid from either two companies that had earlier expressed interest.

“Anyone coming in here is going to look at what’s on the ground and is going to be overwhelmed,” Muña said earlier this month. .

“When we start talking about the overhaul, you can go to the manual and go to the page, ‘This is what you need to do on an overhaul.’ The problem you have is that because of the neglect, you may need more than what the manual says for the overhaul. And that we cannot ascertain until you take the engine apart,” he added.

Muña said he has since decided to pursue the rehabilitation work with CUC mechanics and engineers, augmented by other staff.

“I think from our standpoint, that’s a better approach,” he said.

CUC then will break down the work into sections and contract the jobs out.

“And what they’re going to do is basically say, ‘OK, when they take the engine a part, here’s a job. We’re going to contract this part of the job.’ We’re going to break it down into pieces,” he said.

Outside companies are not knowledgeable about past work on the engines, but CUC engineers and mechanics are, he said.

“The bidders don’t have access to what exactly [CUC’s engineers and mechanics] know because what exactly they do know, we just don’t have the documentation for,” Muña said.

Muña said CUC would finance the project with the $3.8 million the company is requesting from the Office of Insular Affairs, along with leftover funding, for a total of $5.4 million.

“Taking this approach will probably give us a better return on investment in terms of getting the production we want,” he said.

Muña had earlier said engines 5 and 7 could produce 22 megawatts of power, which could cover the 15 megawatts of power that will be lost when the Aggreko contract ends next year.