SUBJECT/RECOMMENDATION:
Title
Approve an annual blanket purchase order (contract) to Univar USA Inc. (Univar) of Morrisville, PA, in the annual amount of $150,000.00, with the option for two, one-year term extensions for the purchase of Polyphosphate (ITB 03-16), and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Univar provides chemical products to the water treatment industry. Polyphosphate is a water treatment chemical used to prevent lead and copper from leaking into the system and to maintain water quality in the distribution system. Polyphosphate is utilized at the three Water Treatment Plants for corrosion control.
On November 24, 2015, five bid submissions were received in response to Invitation to Bid (03-16) for Polyphosphate. Univar USA Inc. is the lowest, most responsive bidder with the cost of Polyphosphate at $1.45/lb.
The contract will be effective for an initial one-year period in the annual amount of $150,000.00, with two, one-year renewal options. Years two and three allow for cost increases based on the Producer Price Index (PPI), not to exceed 5% of the prior annual amount; a maximum of $157,500 (year two) and $165,375 (year three).
APPROPRIATION CODE AND AMOUNT:
0421-02053-551000-533-000-0000 $ 49,795.08 FY 15/16
0421-01351-551000-533-000-0000 $ 49,795.08 FY 15/16
0421-02053-551000-533-000-0000 $ 25,204.92 FY 16/17
0421-01351-551000-533-000-0000 $ 25,204.92 FY 16/17
Sufficient funding is available in the Water & Sewer Utility Fund operating cost centers 0421-02053, Water Supply, and 0421-01351, Wastewater Plant Operations, in equal amounts of $49,795.08, respectively, to fund the current fiscal year’s cost of the contract. The funding for the remaining balance of $50,409.84, along with the second and third contract years occurring in fiscal years 2017 through 2019 will be included in the Water and Sewer recommended operating budget from the Director.
USE OF RESERVE FUNDS:
N/A