TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 11, 2024
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order for Contract 24-936-11, Furnishing and Delivering Citric Acid to Shannon Chemical Corporation, in an amount not to exceed $202,531.20, Account 101-69000-623560, Requisition 1615493
Body
Dear Sir:
On April 4, 2024, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 24-936-11, Furnishing and Delivering Citric Acid.
In response to a public advertisement of May 15, 2024, a bid opening was held on June 4, 2024. The bid tabulation for this contract is:
SHANNON CHEMICAL CORPORATION $202,531.20
ALEXANDER CHEMICAL CORPORATION $213,576.00
Shannon Chemical Corporation, the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost of this contract is $248,200.00, placing their bid of $202,531.20 approximately 18.5 percent below the estimate.
The Multi-Project Labor Agreement (MPLA) was not included in this contract because it is primarily a furnish and deliver contract for chemicals.
The Affirmative Action Ordinance Revised Appendix D and Appendix V are not applicable to this contract because there are no subcontracting opportunities.
The contractor shall commence delivery five days after the issuance date of the purchase order and terminate twenty-four (24) months thereafter, or upon expenditure of available funds, whichever occurs sooner.
The bid deposit in the amount of $12,400.00 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 purchase order for Contract 24-936-11, to Shannon Chemical Corporation, in an amount not to exceed $202,531.20.
Funds for the 2024 expenditures, in the amount of $38,200.00, are available in Account 101-69000-623560. The estimated expenditures for 2025 are $100,487.60 and for 2026 are $63,843.60. Funds for 2025 and 2026 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 July 11, 2024
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