Subject:
Title
Award of bid to Premier Magnesia, LLC for magnesium hydroxide and equipment services.
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Recommended Action
Recommended Action
Approval of an award of bid to Premier Magnesia, LLC (Premier Magnesia) for magnesium hydroxide and equipment services.
Bid No. 145-0496-B(LN) in the amount $5,196,842.63 on the basis of being the only responsive, responsible bid received meeting specifications.
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Strategic Plan:
Deliver First Class Services to the Public and Our Customers
5.2 Be responsible stewards of the public’s resources
Summary:
This contract provides for an all inclusive odor and corrosion control program utilizing magnesium hydroxide. Services provided include the supply of all equipment required for the injection of magnesium hydroxide at multiple locations in the wastewater collection system. The contract period is for five (5) years, containing provision for price adjustments at twelve (12) month intervals after award not to exceed the average of the Producer Price Index, Chemical Manufacturing index for the twelve (12) months prior.
Background Information:
On August 25, 2015, the Purchasing Department, on behalf of the Utilities Department, released a notice of intent to sole source this requirement. One response was received. Due to the amount of expenditure, staff then decided to test the market and competitively bid this requirement. Premier Magnesia was the only firm to respond. The Utilities Department requires a firm to supply all the equipment necessary for the injection of this chemical. While there are other firms that sell magnesium hydroxide, Premier Magnesia is the only firm that provides all the equipment associated with injecting the product. Purchasing the equipment separately would be costly both from an acquisition and maintenance perspective.
The current contract with Premier Magnesia expires November 14, 2015 and has been in place since November 2009. In 2009, Premier Magnesia was the only respondent to the bid.
Fiscal Impact:
Estimated annual expenditure not to exceed: $ 1,039,368.53
Estimated five (5) year expenditure not to exceed: $ 5,196,842.63
Funding is derived from the Utilities Enterprise Fund.
Staff Member Responsible:
Robert Powell, Director, Utilities
Joe Lauro, Director, Purchasing
Partners:
N/A