DATE: June 1, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russell Truell, Assistant City Administrator / CFO
Mark Hilty, Water Management Director
Russell Sullivan, Water Treatment Superintendent
Brian Wilcox, Purchasing Manager
SUBJECT:
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Acknowledge report of execution of Procurement Agreement with Brenntag Mid-South, Inc. of Henderson, Kentucky in the unit amount of $0.32 per pound for an estimated quantity of 17,000 pounds per year of hydrofluosilicic acid (fluoride) for a term of award of up to five (5) years for the Water Treatment Division of the Water Management Department (Purchasing Office Procurement Solicitation No. 2016-021; Contract No. 2016-0102)
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Purpose
The purpose of this procurement is to purchase the supply and delivery of hydrofluosilicic acid (fluoride), a chemical currently used in the process of treating raw water for distribution as potable water at the City’s Water Treatment Facility. Deliveries are to be made within seven (7) calendar days after receipt of order during the term of award which is to be a minimum of twelve (12) months effective July 1, 2016, not to exceed five (5) years.
Background
At its meeting on May 10, 2016, the Board of Mayor and Aldermen voted to award this procurement for hydrofluosilicic acid (fluoride) to Brenntag Mid-South, Inc. of Henderson, Kentucky. Pursuant to authority previously granted by the Board of Mayor and Aldermen to the City Administrator, the contract memorializing this award (City Contract No. 2016-0102) has now been executed by the City Administrator and is attached.
Financial Impact
As reported previously, the bid from Brenntag Mid-South, Inc. of Henderson, Kentucky, is in the unit amount of $0.32 per pound for an estimated quantity of 17,000 pounds per year of hydrofluosilicic acid (fluoride). For a term of award of up to five (5) years, the estimated value of the Brenntag Mid-South, Inc. bid based on bid unit pricing and the specified estimated annual quantity is $27,200. The Brenntag Mid-South, Inc. bid is $0.08 (20%) less than the winning bid, from the same bidder, the last time, about this time in 2013, the City solicited bids for this chemical.
Recommendation
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Staff recommends that the Board of Mayor and Aldermen acknowledge receipt of this report of execution of a Procurement Agreement with Brenntag Mid-South, Inc. of Henderson, Kentucky, in the unit amount of $0.32 per pound for an estimated quantity of 17,000 pounds per year of hydrofluosilicic acid (fluoride) for a term of award of up to five (5) years for the Water Treatment Division of the Water Management Department (City Contract No. 2016-0102).