TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 19, 2015
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Report on rejection of bids for Contract 15-640-11, Furnishing and Delivering Sodium Bisulfite, estimated cost $2,835,000.00 (As Revised)
Body
Dear Sir:
On August 6, 2015, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 15-640-11, Furnishing and Delivering Sodium Bisulfite.
In response to a public advertisement of September 23, 2015, a bid opening was held on October 13, 2015. The bid tabulation for this contract is:
SOUTHERN IONICS INCORPORATED $2,462,482.50
Two hundred and ninety-six (296) companies were notified of this contract being advertised and eleven (11) companies requested specifications.
A review of the estimate and the contract documents indicated that the term was for a 3-year period. After discussions with the Maintenance & Operations Department, it was determined that the public interest would be better served if the term of the contract was decreased from three (3) years to one (1) year.
The current contract requires bidders to forecast and hold their unit pricing for a 3-year term. The District has learned that this is difficult to do for chemical commodities such as sodium bisulfite, and may discourage bidders from bidding or lead to a higher unit price over a long period of time.
Therefore, the sole bid is being rejected in the public’s best interest. The Director of Procurement and Materials Management has notified Southern Ionics Incorporated of this action.
The Authority to Advertise for this contract will be amended from three (3) years to one (1) year and adjust the cost estimate prior to re-advertisement.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:cm
Respectfully Submitted, Barbara J. McGowan, Chairman, Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for November 19, 2015