Skip to main content
File #: 15-0971    Version: 1 Name:
Type: Contract/Agreement Status: Passed
File created: 10/14/2015 In control: Board of Mayor & Aldermen
On agenda: 11/24/2015 Final action: 11/24/2015
Title: Consideration Of Bid Award To American Development Corporation Of Fayetteville, Tennessee In The Delivered Bid Price Amount Of $1.45 Per Gallon For The Water And Wastewater Treatment Chemical Sodium Hypochlorite For A Specified Term Of Award, With Options To Extend, For The Water Management Department (Purchasing Office Procurement Solicitation No. 2016-001; Contract No. 2015-0361) (11/10/15 WS)
Sponsors: Mark Hilty, Michelle Hatcher
Attachments: 1. 2016-001 Tabulation of bids, 2. 2015-0361 Procurement Agreement, approved by Law, signed for vendor, with attachments

 

DATE:                                                               October 28, 2015

 

TO:                                          Board of Mayor and Aldermen

 

FROM:                                          Eric Stuckey, City Administrator

                                          Russell Truell, Assistant City Administrator / CFO

                                          Mark Hilty, Water Management Director

                                          Michelle Hatcher, Water Management Assistant Director

                                          Russell Sullivan, Water Treatment Superintendent

                                          Juan Davis, Water Reclamation Superintendent

                                          Brian Wilcox, Purchasing Manager

 

SUBJECT:                                          

title

Consideration Of Bid Award To American Development Corporation Of Fayetteville, Tennessee In The Delivered Bid Price Amount Of $1.45 Per Gallon For The Water And Wastewater Treatment Chemical Sodium Hypochlorite For A Specified Term Of Award, With Options To Extend, For The Water Management Department (Purchasing Office Procurement Solicitation No. 2016-001; Contract No. 2015-0361) (11/10/15 WS)  

body

 

Purpose

The purpose of this procurement is to establish unit pricing for the supply and delivery upon demand of the water and wastewater treatment chemical sodium hypochlorite (a.k.a., bleach or liquid bleach or chlorine bleach) for an initial term of award through June 30, 2017, with up to three (3) options to extend, each time for up to one (1) additional year, for the Water Management Department.  This chemical is routinely used at the City’s Water Treatment Facility for the production of potable water as well as at the City’s Water Reclamation Facility for the disinfection of reclaimed water.

 

Background

The City published on August 20, 2015 a Notice to Bidders in the Williamson Herald for supply and delivery upon demand of each of the following water and wastewater treatment chemicals for the specified term of award:  sodium hypochlorite (Purchasing Office Solicitation No. 2016-001), sodium hydroxide (2016-002), muriatic acid (hydrochloric) (2016-003), and sludge polymer (2016-004); each being bid independently.  In addition, bid documents were sent on or about the same date directly to nineteen (19) potential bidders known or thought to be interested in this solicitation.  Bids from four (4) vendors were publicly opened at the bid opening held on October 15, 2015.  A tabulation of the bids received for this solicitation is attached.

 

Financial Impact

The apparent lowest, most responsive and responsible bid, from American Development Corporation of Fayetteville, Tennessee, is in the amount of $1.45 per gallon for the Water Treatment Facility and $1.45 per gallon for the Water Reclamation Facility for sodium hypochlorite.  This bid was identified because it is the lowest bid that meets or exceeds the City’s intention as expressed and implied by the City’s specifications as well as the instructions, terms and conditions pertaining to this procurement solicitation.  It is worth noting that the City did receive two bids that quoted lower pricing than was quoted by American Development Corporation; however, neither of these bids included the required documentation to qualify as responsive to the City’s procurement solicitation.

 

By comparison with the unit pricing being paid by the City currently for sodium hypochlorite ($1.48 per gallon for the Water Treatment Facility and $1.57 per gallon for the Water Reclamation Facility), which unit pricing was established by competitive process conducted in 2013 for the Water Treatment Facility and 2012 for the Water Reclamation Facility, the 2015 unit pricing bid by American Development Corporation is $0.03 per gallon (2%) lower for the Water Treatment Facility and $0.12 per gallon (8%) lower for the Water Reclamation Facility.  (It is worth noting that the 2015 solicitation for bids for sodium hypochlorite was for both plants unlike the 2012 and 2013 solicitations for bids for sodium hypochlorite which were for one plant each.)

 

The Water Management Department estimates that the Water Treatment Facility may require 26,000 gallons of sodium hypochlorite per year and that the Water Reclamation Facility may require 65,000 gallons of sodium hypochlorite per year.  (Bidders were advised and cautioned that the indicated estimated quantities represent only approximate projections and do not represent guaranteed minimums or maximums.)  Thus, the total value of an award to American Development Corporation pursuant to the unit pricing described above for the two specified uses of sodium hypochlorite if all options to extend the term of award are exercised (a potential total of 4.5 years) is estimated to be $593,775.  The Water Treatment Division of the Water Management Department budget for fiscal year 2016 allocates $283,250 out of the Water Fund, and the Water Reclamation Division allocates $231,750 out of the Wastewater Fund, for the purchase of chemicals and lab supplies.

 

Options

In accordance with the bid documents, the City reserves the right to reject any and all bids.

 

Recommendation

rec

Staff recommends that the City accept, contingent upon Law Department and City Administrator approval of City Contract No. 2015-0361, the apparent lowest best bid, from American Development Corporation of Fayetteville, Tennessee, in the delivered bid price amount of $1.45 per gallon for the Water Treatment Facility and $1.45 per gallon for the Water Reclamation Facility, for the water and wastewater treatment chemical sodium hypochlorite for a specified term of award, with options to extend, for the Water Management Department.  Purchasing Manager Brian Wilcox is of the opinion that the prepared specifications as distributed allowed for competition among multiple vendors, and that the staff recommendation appears to be made in a fair and impartial manner based upon the bids received.