Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A PURCHASE AGREEMENT WITH UNIVAR COMPANY FOR ROCK SALT FOR THE CITY'S WATER TREATMENT PLANT.
Executive Summary: The Water Resources Division uses bulk coarse rock salt to regenerate softening equipment as part of the water treatment process at the Water Plant. The Water Resources Division currently budgets $102,000 annually for rock salt and water treatment chemicals. The current rock salt contract is held by the Univar Company. The contract term ends on December 31, 2013. The 2012 rock salt expenditures for water treatment operations had a total expenditure of $87,427.50.
Body
Legislative History
Resolution #12-164, December 19, 2012: Permission to bid and/or obtain competitive pricing.
Purpose & Explanation
The Public Works Department publicly advertised for the water department bulk salt supply contract per the City's current public bidding procedures and policies. Two (2) vendors acquired bid documents, Cargill Industries and Univar Company. Public Works received one (1) bid from the Univar Company. The bid tabulation is attached.
As the Public Works Department staff was concerned as to the reason(s) Cargill Industries did not bid the contract, staff contacted Cargill Industries seeking an explanation. Cargill representatives responded as follows:
1) The contract seemed to favor the owner.
2) There was some confusion on their part as to why we would request bids for salt when we
Hudson was a member of the CUE program.
3) They didn't want to supply some of the information requested in the contract document
4) Internal confusion within their company as to what department should submit the bid
5) Finally when asked for one specific reason, we were told they didn't have one, they just didn't get around to it.
They offered no further explanation for not bidding the contract and showed no interest in bidding should the contract be advertised a second time.
With our past experience with this contract and knowing that there are very few bulk salt suppliers, staff does not believe that re-bidding this contract will result in an increased number of bidders or lower pricing. And with Cargill showing no interest in the contract we recommend the contract be awarded to Univar Company.
Timing Considerations
The contract term is for one (1) year from January 1, 2014 to December 31, 2014.
Fiscal Impact
X Currently Budgeted
Supplemental Appropriation Required
Appropriation Not Required.
Recommendation
Suggested Action
Based on the unit pricing submitted, staff recommends that City Council award the Water Resources Division rock salt contract to Univar Company, 328 Bunola River Road, Bunola, PA 15020 at the submitted unit pricing of $81.00 per ton for a one (1) year contract term.
Submitted by,
Kevin Powell, Public Works Superintendent - Utilities
Frank J. Comeriato, Jr. Director of Public Works