TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 6, 2017
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Issue purchase order for Contract 17-936-12 (Re-Bid), Furnishing and Delivering Citric Acid, to H-O-H Water Technology, Inc., in an amount not to exceed $141,166.00, Account 101-69000-623560, Requisition 1437850
Body
Dear Sir:
On October 20, 2016, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 17-936-11, Furnishing and Delivering Citric Acid.
In response to a public advertisement on November 30, 2016, a bid opening was held on December 20, 2016. There were no bids received for this contract.
In response to a public re-advertisement on May 17, 2017, a bid opening was held on June 6, 2017. The bid tabulation for this contract is:
H-O-H WATER TECHNOLOGY, INC. $141,166.00
The Director of Procurement and Materials Management has reviewed the bidders’ list for this contract, and is satisfied that the market for this service has been adequately solicited. A planholders’ survey revealed the following reason for not bidding: could not provide the services requested. In light of these findings, the Director of Procurement and Materials Management is of the opinion that the bid received is a fair and reasonable price, and nothing would be gained by rejecting the sole bid and re-advertising this contract.
Three hundred ten (310) companies were notified of this contract being advertised and eighteen (18) companies requested specifications.
H-O-H Water Technology, Inc., the sole bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost of this contract is $160,000.00, placing the bid of $141,166.00 approximately 11.8 percent below the estimate.
The contract will terminate on December 31, 2019.
The Multi-Project Labor Agreement (MPLA) is not applicable to this contract because it is primarily a furnish and deliver contract.
The Affirmative Action Ordinance, Revised Appendix D is not included in this contract because it is primarily a furnish and deliver contract.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order for Contract 17-936-12 (Re-Bid) to H-O-H Water Technology, Inc., in an amount not to exceed $141,166.00.
The bid deposit, in the amount of $8,000.00, will be retained in lieu of a performance bond, which is satisfactory to the Law Department and approved by the Director of Procurement and Materials Management.
Funds for the 2017 expenditures, in the amount of $35,366.00, are available in Account 101-69000-623560. The estimated expenditures for 2018 are $52,900.00, and for 2019 are $52,900.00. Funds for the 2018 and 2019 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
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 July 6, 2017