City of Nashua communty Development
Community Development Division Buang Barely at
City Hall, 229 Main Street, PO Box 2019 Traneportetion Depa iment
Nashua, New Hampshire 03061-2019 Waterways
589-3095
589-3090
589-3080
589-3100
589-3085
880-0100
589-3092
589-3119
Date: August 17, 2021
To: John Griffin, CFO; Kelly Parkinson, Purchasing Manager
From: Sarah Marchant, Community Development Division Director
Re: Mavel Contract Change Orders #2 and #3- Jackson Mills Turbine, Generator and
Controls (TGC) Replacement
Background
The City is undertaking a major equipment replacement project at the Jackson Mills
hydroelectric facility. As part of that project, the City of Nashua entered into a contract with
Mavel Americas for the manufacture, transportation and installation of the turbine, generator and
controls (TGC) for the Jackson Mills hydroelectric project. The original schedule required the
TGC to be delivered to the site in August of 2021. Mavel issued a Ready To Ship Notice to the
City indicating the equipment was ready to be delivered. Due to permitting issues with the
Federal Energy Regulatory Commission (FERC) and the NH DES Wetlands Bureau, the
schedule has been extended. The new schedule, which takes into account winter weather, worker
safety and fish passage, requires the TGC to be delivered in September of 2022. Because of the
sensitivity and size of the equipment, it was determined to be infeasible to store the equipment
on-site or locally.
Change Order #2 — Attached
Because of the permitting delay, the delivery for TGC from Mavel is now scheduled for delivery
at Jackson Mills on or about September 15, 2022. The electrical equipment from Eaton is now
scheduled for delivery at Jackson Mills on or about November 1, 2022. This change order
extends the contract for an additional 397 days or until the completion of equipment installation.
TGC will be stored by Mavel in the Czech Republic. Additional electrical equipment
manufactured by Eaton, a subcontractor of Mavel, will be stored by Eaton in Maine. The costs
for storage of equipment are as follows:
Storage of equipment by Mavel: $49,000
Storage of equipment by Eaton: $11,500
Total Storage: $60,500
Change Order #3 - Attached
Because of the permitting delay, the TGC will be installed beginning in September 2022. The
warranty coverage for the equipment as described in the General Conditions Section 22.4 of the
contract indicates the original warranty period would begin 30 days from the date the equipment
was scheduled to be ready to be delivered and shall end 30 months thereafter. Based on the
Ready To Ship notice issued by Mavel on June 30, 2021, the original warranty will expire on
January 30, 2024. Assuming installation of the equipment is completed by February 28, 2023,
the original warranty would expire within 1 year of installation. To maintain the original intent of
the warranty coverage, the City will purchase the extension, which will extend the warranty
period one year until January 30, 2025.
