TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 5, 2024
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase orders for Contract 24-631-11, Furnishing and Delivering Ferric Chloride, to Kemira Water Solutions, Inc. (Kemira), in an amount not to exceed $11,668,079.00, Accounts 101-68000/69000-623560, Requisitions 1617752 and 1617861
Body
Dear Sir:
On June 6, 2024, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 24-631-11, Furnishing and Delivering Ferric Chloride.
In response to a public advertisement of July 17, 2024, a bid opening was held on August 6, 2024. The bid tabulation for this contract is:
KEMIRA WATER SOLUTIONS, INC. $11,668,079.00
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 reasons for not bidding: do not carry the product required and shipping of product is too far 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.
Kemira Water Solutions, Inc. (Kemira), the sole bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost for this contract was $11,798,000.00, placing their bid of $11,668,079.00 approximately 1 percent below the estimate.
The Multi-Project Labor Agreement 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 there are no subcontracting opportunities.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue purchase orders for Contract 24-631-11 to Kemira Water Solutions, Inc., in an amount not to exceed $11,668,079.00.
The bid deposit in the amount of $472,000.00 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.
The contract shall begin five days after the purchase orders are sent, and terminate thirteen (13) months thereafter, or upon expenditure of available funds, whichever occurs sooner.
Funds for the 2024 expenditure are available in Accounts 101-68000/69000-623560 in the amount of $2,702,750.00. The estimated expenditure for 2025 is $8,965,329.00 and is contingent on the Board of Commissioners’ approval of the District’s budget for that year.
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 September 5, 2024
Attachment