TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 18, 2024
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order for Contract 24-630-11, Group A, Furnishing and Delivering Chemical Coagulants, to Kemira Water Solutions, Inc., in an amount not to exceed $7,327,618.00, Accounts 101-68000/69000-623560, Requisitions 1603451 and 1603558
Body
Dear Sir:
On September 7, 2023, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 24-630-11, Furnishing and Delivering Chemical Coagulants.
In response to a public advertisement of October 11, 2023, a bid opening was held on October 31, 2023. The bid tabulation for this contract is:
GROUP A: F&D FERRIC CHLORIDE
KEMIRA WATER SOLUTIONS, INC. $7,327,618.00
GROUP B: F&D ALUMINUM SULFATE
USALCO, LLC *$11,300,352.00
*corrected total
Kemira Water Solutions, Inc., the lowest responsible bidder for Group A, is proposing to perform the contract in accordance with the specifications. The estimated cost for Group A of this contract was $8,235,500.00, placing the bid of $7,327,618.00 approximately 11 percent below the estimate.
USALCO, LLC (USALCO) submitted a bid for Group B in the amount of $11,300,352.00 which is 196 percent over the estimated cost of $5,764,500.00. This firm also modified the estimated quantities required under this contract in the proposal pages which is not allowed per the contract documents. Therefore, the Director of Procurement and Materials Management has informed USALCO that their bid is rejected based on the above, and in the public’s best interest. Group B will be re-advertised in the near future.
The contract shall begin five days after the issuance of a purchase order and terminate thirteen (13) 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 and Appendix V was not included in this contract because it is a furnish and deliver contract and there are no MBE/WBE/VBE firms available to provide the specified products.
The bid deposit, in the amount of $330,000.00, 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 24-630-11, Group A, to Kemira Water Solutions, Inc., in an amount not to exceed $7,327,618.00.
Funds are available in Accounts 101-68000/69000-623560.
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 January 18, 2024