Action Item “III“ Special Board Meeting August 2, 2010

Consideration of Approval to purchase Polaris H.O.T. Unit Model #1

ADMINISTRATION RECOMMENDATION/REPORT The Chancellor recommends that the Board of Trustees approve the purchase of a Polaris H.O.T. Unit Model #1 from Polaris Engineering. BACKGROUND The location of San Jacinto College’s Central campus puts it in the heart of the petro-chemical and refining industries of the greater Harris county area. As such, this positions the College to take the lead in process operations training which requires the College to increase training availability and increase its range of courses related to the chemical process industry. One solution for achieving this goal is the addition of a “Hands on Trainer” (H.O.T.) unit. The H.O.T. unit is a comprehensive process-related training system that provides realistic training for process technicians. This solution has been investigated by both the credit and non-credit divisions. The H.O.T. unit allows for training, assessment, and structured exercises for the primary activities undertaken in the process industries. These include start-up, shut-down, normal operations, and troubleshooting. These exercises are carried out in a realistic environment as opposed to a virtual environment. The unit was designed with budgetary and environmental concerns in mind. The estimated cost of process simulators can easily reach $1.5 to $2 million compared to a $250,000 cost for the H.O.T. unit (including installation). The H.O.T. unit also uses water as the simulated process fluid which has no environmental impact should a line break occur. This purchase is exempt from competitive bidding per Section 44.031 (j) of the Texas Education Code. Sole source number 1327 has been assigned. IMPACT OF THIS ACTION The student population of the Process Technology department has increased by 30% in the last four years. There is a consistent demand by industry for continuing and professional development training classes using the department’s Glycol Pilot Plant laboratory. The demand for the Glycol Pilot Plant laboratory is rapidly exceeding weekly scheduling capabilities. Currently, the non-credit division (Continuing and Professional Development or CPD) offers contract courses for process operators in durations of 32, 40, and 72 contact hours. CPD is also planning to offer a 32 contact hour course in basic process troubleshooting and a 40-hour course in advanced process troubleshooting techniques. The latter courses have been requested by industry. However, due to limitations in equipment availability, the College has not been able to fully launch these courses. Acquisition of the H.O.T. unit will allow CPD to schedule these troubleshooting courses.

Action Item “III“ Special Board Meeting August 2, 2010

Consideration of Approval to purchase Polaris H.O.T. Unit Model #1

BUDGET INFORMATION (INCLUDING ANY STAFFING IMPLICATIONS) The contract prices for the 32 and 40 hour process courses range from $6,400 to $6,800 with the 72-hour course priced at approximately $24,000. The 72-hour course is offered on the average of once per year while the 32 and 40 process operator courses are conducted on the average of six (6) times a year. It is anticipated that each of the process troubleshooting courses would operate at least twice a year each. Using $6,600 as a median figure for course pricing, it is anticipated that approximately $66,000 in revenues per year with instructional costs totaling approximately $15,000-16,000. Projected revenues (net of direct instructional costs) of $50,000 per year result in a return of capital in approximately five to six years. The H.O.T. unit has an expected life of twenty years. If approved, the total expenditure for this project will be $270,000: $250,000 for the H.O.T. unit plus $20,000 for infrastructure. The $270,000 will be funded by the 2009-2010 President’s discretionary account, and $10,000 of that cost will be offset by grant funds received from the petro chemical industries. MONITORING AND REPORTING TIMELINE None ATTACHMENTS Attachment #1-Proposal RESOURCE PERSONNEL Steven Horton 281-476-1806 steven.horton@sjcd.edu Mike Speegle 281-478-2716 michael.speegle@sjcd.dumichael.speegle@sjcd.du

mailto:steven.horton@sjcd.edumailto:michael.speegle@sjcd.du

Action Item H O T - Polaris docx.pdfADMINISTRATION RECOMMENDATION/REPORTBACKGROUNDIMPACT OF THIS ACTIONBUDGET INFORMATION (INCLUDING ANY STAFFING IMPLICATIONS)MONITORING AND REPORTING TIMELINEATTACHMENTSRESOURCE PERSONNEL