Interoffice Memorandum
DATE: October 12, 2026
TO: Mayor Jerry L. Demings and County Commissioners
FROM: Carrie Mathes, FNIGP, CFCM, NIGP-CPP, CPPO, C.P.M., Manager II, Procurement Division
CONTACT: Troy Layton, P.E., BCEE, Manager, Field Services Division
PHONE: 407-254-9794
SUBJECT: Approval of Contract Y26-1005, Flygt Pumps, Parts and Repairs
ACTION REQUESTED:
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Approval to award Contract Y26-1005, Flygt Pumps, Parts and Repairs, with Xylem Water Solutions U.S.A., Inc., in the estimated contract award amount of $15,183,347.02 for a five-year term. ([Utilities Department Field Services Division] Procurement Division)
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PROCUREMENT:
This contract will provide Flygt submersible pumps, parts, and as-needed repairs for the County wastewater pump stations. Pump replacement volume is estimated based on the anticipated 17-year service life of the currently installed pumps and an analysis of historical replacement activity. During the proposed five-year contract term, approximately 860 submersible pumps are expected to reach this service-life milestone. Actual replacements will be determined based on equipment condition and operational needs.
FUNDING:
Funding is available in account number 4420-038-1347-3820.
APPROVALS:
The Field Services Division concurs with this request.
REMARKS:
Flygt submersible pumps were approved for standardization by the Procurement Division on November 23, 2010. Approximately 80% of Orange County Utilities’ (OCU) submersible pump inventory consists of Flygt-brand pumps. These pumps are critical components of OCU’s wastewater collection system and are used to convey wastewater to treatment facilities. The Flygt pumps installed throughout OCU’s wastewater lift stations have been selected and configured to meet the specific hydraulic and operational requirements of each facility. Replacement with non-Flygt equipment would not constitute a direct substitution and would require engineering evaluation and potentially modifications to pump guide rail systems, mounting hardware, hydraulic performance characteristics, controls, and monitoring systems. Such modifications could adversely affect pump station performance, increase maintenance requirements, and introduce unnecessary operational risk. Flygt submersible pumps utilize proprietary components and technologies that are not interchangeable with those of other manufacturers. Flygt original equipment manufacturer (OEM) parts are required to maintain equipment reliability, ensure proper operation, and preserve the original design performance of the pumping systems.
Repairs performed by non-authorized service providers or the installation of non-OEM components may void manufacturer warranties and could limit OCU’s ability to obtain warranty support for equipment failures. Xylem Water Solutions U.S.A., Inc. (Xylem), as the OEM, is the exclusive source for genuine Flygt OEM parts and factory-authorized repair services necessary to maintain warranty compliance and manufacturer support.
Xylem has been verified as the exclusive authorized dealer for Flygt pumps in the State of Florida. Xylem has also demonstrated a satisfactory record of performance with Orange County Utilities and the County. The discounts from list price that were negotiated with Xylem are as follows:
Pumps 10% Unit Cost Percentage Mark down from Manufacturer's
OEM Parts 10% Suggested Retail Price (MSRP) Unit Cost Percentage Mark down from MSRP
The estimated contract value includes the purchase of Flygt pumps, genuine Flygt OEM replacement parts, and factory-authorized repair services.
OCU reviewed historical pricing, relevant industry indices, and anticipated cost increases to develop the estimated contract value for the proposed five-year term. The estimated contract value was developed using actual historical expenditures and usage under Contract Y22-103 as a baseline. As part of the price reasonableness review, pricing and discounts were compared with OCU’s previous contract and similar contracts between the vendor and Hillsborough County, Florida, Contract No. 21659, and the Indian River County, Florida, Contract No. 1155-B. The specifications, quoted prices, and discounts under these contracts were determined to be equal to or comparable with those proposed for this contract.
OCU’s review considered projected escalation for Flygt pumps, OEM replacement parts, and factory-authorized repair services to ensure sufficient contract capacity to meet anticipated operational needs through the contract term. The following factors were considered in developing the estimated contract value:
• Pump Pricing: The estimate includes an annual compound escalation rate of approximately 8%, based on the U.S. Bureau of Labor Statistics (BLS) Producer Price Index for Pump and Pumping Equipment Manufacturing (Series PCU33391433391411). This rate results in a cumulative increase of approximately 39% over the five-year contract term.
• Replacement Parts: This estimate budgets a total 41% increase for replacement parts across the contract lifecycle, combining the past contract's 32.8% historical increase with a conservative 2% annual increase for Years 2 through 5 (compounding to 8.24% over the five-year term). This forecast remains lower than the actual 3.2% market inflation rate reported by the BLS for pump equipment (June 2025 to June 2026).
• Labor Costs: Labor costs for specialized Flygt pump repair services are projected to increase by approximately 15% over the five-year contract term. This estimate is based on historical wage growth reported by the BLS Employment Cost Index for installation, maintenance, and repair occupations, representing a conservative planning assumption. From 2021 to 2025, the index increased from 147.2 to 176.558, an overall increase of approximately 20%.
• Environmental Fees: The estimate reflects the increased environmental disposal fees associated with pump repair services. These fees are subject to environmental requirements governing the storage, transportation, and final disposition of repair by-products. Projected utilization is based on anticipated repair activity, and the estimated budget is expected to accommodate these costs throughout the five-year contract term.
• Flange Drilling: The estimate reflects a change in measurement for Flange Drilling, moving from a discount structure in the previous term contract (Y22-103) to a fixed unit price in this bid schedule. The service has been estimated based on the projected volume required during the five-year term, totaling 500 pumps.
Accordingly, the total estimated contract value reflects the current cost of Flygt pumps, genuine Flygt OEM replacement parts, and factory-authorized repair services, together with reasonable allowances for anticipated price escalation over the proposed five-year contract term.
These projected escalation factors were used to develop the budget and estimated contract amount to provide sufficient capacity to support OCU's anticipated operational needs throughout the five-year period. The estimated amount is intended to account for projected cost increases and does not represent a commitment to expend the full contract amount. Actual expenditures will be based on OCU's operational needs and the goods and services ordered during the contract term.
Establishing this contract will ensure continued equipment compatibility, preserve manufacturer warranty coverage, maintain system reliability, minimize operational risk, and support the continued operation of Orange County Utilities’ critical wastewater infrastructure. The discounts offered by Xylem have not changed from those provided under the previous Y22-103 term contract and are considered reasonable and realistic for the goods and services to be provided.