DATE: April 29, 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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Consideration of procurement award to Brenntag Mid-South, Inc. of Henderson, Kentucky, in the unit amount of $0.915 per pound for an estimated quantity of 38,000 pounds per year of powder-activated carbon (Hydrodarco B) 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. 2016-022; Contract No. 2016-0103; 05/10/16 WS)
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Purpose
The purpose of this procurement is to purchase the supply and delivery of powder-activated carbon (Hydrodarco B), 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
The City published on March 10, 2016 a Notice to Bidders in the Williamson Herald for supply and delivery upon demand of each of the following four (4) water treatment chemicals for a minimum of twelve (12) months: sodium permanganate (Purchasing Office Solicitation No. 2016-020), hydrofluosilicic acid (fluoride) (2016-021), powder-activated carbon (Hydrodarco B) (2016-022), and polyaluminum chloride (PAC) (2016-023); each chemical being bid out independently. In addition, bid documents were sent on or about the same date directly to 23 potential bidders known or thought to be interested in this solicitation. Bids from three (3) vendors were publicly opened at the bid opening held on March 29, 2016. A tabulation of the bids received for this solicitation is attached.
Financial Impact
The apparent lowest, most responsive and responsible bid, from Brenntag Mid-South, Inc. of Henderson, Kentucky, is in the unit amount of $0.915 per pound for an estimated quantity of 38,000 pounds per year of powder-activated carbon (Hydrodarco B). 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 $173,850. 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. The Brenntag Mid-South, Inc. bid is $0.055 (5.7%) less than the winning bid, from the same bidder, the last time, about this time in 2013, the City solicited bids for this chemical.
It is worth noting that the City received a bid, from Thatcher Chemical of Florida, Inc., for a lower unit price that did not take any exceptions to the City’s specifications, as indicated on the tabulation of bids. However, the Thatcher Chemical bid is not for the specified powder-activated carbon (Hydrodarco B) and therefore is not responsive to the City’s procurement solicitation.
Due to the possibility that the City’s needs for this particular chemical may change before the maximum term of award has expired, the specifications reserve the right for the City “to terminate the award immediately upon notifying the vendor that the City no longer has need to purchase the chemical pursuant to this procurement solicitation.”
Options
In accordance with the bid documents, the City reserves the right to reject any and all bids.
Recommendation
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Staff recommends that the City accept, contingent upon Law Department and City Administrator approval of City Contract No. 2016-0103, the apparent lowest best bid, from Brenntag Mid-South, Inc. of Henderson, Kentucky, in the unit amount of $0.915 per pound for an estimated quantity of 38,000 pounds per year of powder-activated carbon (Hydrodarco B). Based on this estimated quantity, the total estimated value of the purchase would be $34,770 per year. 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. Contract No. 2016-0103 is not yet in final form and therefore has not yet been executed. When it is in final form, then, pursuant to authority previously granted by the Board of Mayor and Aldermen, Contract No. 2016-0103 will be executed by the City Administrator and reported to the Board of Mayor and Aldermen.