TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 7, 2024
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order for Contract 24-935-11, Furnishing and Delivering Sodium Hydroxide, to Alexander Chemical Corporation, in an amount not to exceed $1,541,600.00, Account 101-69000-623560, Requisition 1608375
Body
Dear Sir:
On December 7, 2023, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 24-935-11, Furnishing and Delivering Sodium Hydroxide.
In response to a public advertisement of January 10, 2024, a bid opening was held on January 30, 2024. The bid tabulation for this contract is:
ALEXANDER CHEMICAL CORPORATION $1,541,600.00
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: do not provide Sodium Hydroxide and could not provide a bid deposit at this time. 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.
Alexander Chemical Corporation, the sole bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost for this contract was $2,121,000.00, placing their bid of $1,541,600.00 approximately 27.3 percent below the estimate.
The contract shall begin five days after the issuance of a purchase order and terminate twenty-four (24) months thereafter, or upon expenditure of available funds, whichever occurs sooner.
The Multi-Project Labor Agreement (MPLA) is not applicable to this contract because it is primarily a furnish and deliver contract for a chemical.
The Affirmative Action Ordinance, Revised Appendix D is not applicable to this contract because it is primarily a furnish and deliver contract for a chemical.
The bid deposit, in the amount of $106,000.00, 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.
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 24-935-11 to Alexander Chemical Corporation in an amount not to exceed $1,541,600.00.
Funds for the 2024 expenditure, in the amount of $597,800.00, are available in Account 101-69000-623560. The estimated expenditure for 2025 is $806,400.00 and for 2026 is$137,400.00. Funds for the 2025 and 2026 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Requested, John P. Murray, Director of Maintenance and Operations
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:gv
Respectfully Submitted, Marcelino Garcia, 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 March 7, 2024
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