TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 2, 2018
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Acting Executive Director
Title
Issue purchase order for Contract 18-959-12, Furnishing and Delivering Sulfuric Acid (Re-Bid), to Rowell Chemical Corporation, in an amount not to exceed $243,049.92, Account 101-69000-623560, Requisition 1464033
Body
Dear Sir:
On November 16, 2017, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 18-959-11, Furnishing and Delivering Sulfuric Acid.
In response to a public advertisement of January 10, 2018, a bid opening was held on January 30, 2018. All bids were rejected at the June 7, 2018 Board Meeting as reported.
In response to a public re-advertisement of June 13, 2018, a bid opening was held on June 26, 2018. The bid tabulation for this contract is:
UNIVAR USA, INC. $230,300.00
ROWELL CHEMICAL CORPORATION *$243,049.92
*corrected total
Two hundred and nine (209) companies were notified of this contract being advertised and nine (9) companies requested specifications.
The low bid, submitted by Univar USA, Inc., does not comply with all of the terms and specifications of the contract, as they have qualified their proposal by including an indemnity clause as part of their bid. The indemnity clause takes exception to District terms related to the removal of general warranty specifications and imposes a price cap restriction for damages. As such, their proposal is rejected as non-responsive, per our General Requirements, Specifications and Conditions of this contract. The Director Procurement and Materials Management has informed Univar USA, Inc. of this action.
The bid, submitted by Rowell Chemical Corporation, complies with all of the terms and specifications of the contract. Their bid of $243,049.92 is approximately 8.7% above the Engineer’s estimate of $223,600.00.
The contract will expire approximately thirteen months after the mailing date of purchase order.
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 18-959-12 to Rowell Chemical Corporation, in an amount not to exceed $243,049.92.
The bid deposit, in the amount of $11,000.00, 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 2018 expenditure, in the amount of $74,786.00, are available in Account 101-69000-623560. The estimated expenditure for 2019 is $168,263.92. Funds for the 2019 expenditure are contingent on the Board of Commissioners’ approval of the District’s budget for that year.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:st
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 August 2, 2018