DATE: December 12, 2019
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Brock, Assistant City Administrator / CFO
Michelle Hatcher, Water Management Director
Brian Wilcox, Purchasing Manager
SUBJECT:
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Sole-Source Purchase From Southern Sales - Tencarva Municipal, A Division Of Tencarva Machinery Co. Of Nashville, TN Of The Supply And Delivery Of A Quantity Of 60 Ultraviolet Lamps And Various Quantities Of Related Accessories In The Total Amount Of $36,430.95 Plus Freight For The Effluent Disinfection System At The Water Reclamation Facility, For The Water Reclamation Division Of The Water Management Department.
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Purpose
The purpose of this memorandum is to report the sole-source purchase from Southern Sales - Tencarva Municipal, a division of Tencarva Machinery Co. of Nashville, TN, of the supply and delivery of a quantity of 60 ultraviolet lamps and various quantities of related accessories for the effluent disinfection system at the Water Reclamation Facility. The new lamps would replace existing ones that are scheduled to be replaced during fiscal year 2020 due to age. City staff will provide the labor for installation of the new lamps.
Background
City Purchasing Policy allows for the following category of sole-source purchases valued at or greater than $25,000 not to require individual authorization by the Board of Mayor and Aldermen (but which shall be reported to the Board): Purchases of items necessary to maintain, expand or improve a manufacturer-specific system already in use by the City … and that requires interconnectivity of and/or communication between the component parts, so long as the product manufacturer representative has stated in writing that the vendor is the sole source available to the City, and so long as the vendor has stated in writing that the quoted pricing is the lowest municipal unit pricing available at that time and in the foreseeable future for the quantity indicated.
Staff is of the opinion that the supply and delivery of a quantity of 60 ultraviolet lamps and various quantities of related accessories for the effluent disinfection system at the Water Reclamation Facility is a sole-source purchase and is a purchase that falls into the category referenced above and anticipated by City Purchasing Policy as not requiring individual authorization by the Board of Mayor and Aldermen. Evidence to support this opinion includes:
• The purchase consists of supplying and delivering replacement component parts of the existing effluent disinfection system already in place at the Water Reclamation Facility. Specifically, Trojan-brand ultraviolet lamps are being supplied to replace the existing Trojan-brand ultraviolet lamps.
• Only Trojan-brand ultraviolet lamps may be utilized with the existing effluent disinfection system already in place at the Water Reclamation Facility.
• The manufacturer has only one authorized supplier for the sales territory that includes Franklin. That supplier, Southern Sales - Tencarva Municipal, has stated in writing that it is the sole source for the City for supplying new Trojan-brand ultraviolet lamps.
• Although refurbished Trojan-brand ultraviolet lamps are available from other sources, their projected service life makes their purchase uneconomical.
Financial Impact
Southern Sales - Tencarva Municipal has indicated in writing that the quoted unit pricing of $470.00 plus freight per UV4000 lamp, as well as the other unit pricing as quoted, is the lowest unit pricing possible for Tennessee municipalities at this time and in the foreseeable future for the quantity indicated. Freight is estimated to be $500 for the total order. Water Reclamation Superintendent Juan Davis is of the opinion that the quoted pricing is within what would be expected in the market place for this industry at this time. The Water Management Department Water Reclamation Division budget for fiscal year 2020 does not itemize this purchase.
Options
Staff is not aware of any options available to the City for supply and delivery of new Trojan-brand ultraviolet lamps for the effluent disinfection system at the Water Reclamation Facility.