SUBJECT/RECOMMENDATION:
Title
Authorize a purchase order to Shannon Chemical Corporation of Malvern, PA for the supply of a dry blended poly/ortho corrosion control chemical in an annual not-to-exceed amount of $177,000.00, for the period of March 30, 2023 through March 29, 2024, with the option for two, one-year renewals at the City’s discretion at not-to-exceed amounts of $195,000.00 for year 2 and $214,000.00 for year 3, with the ability to increase each renewal by the percentage of the appropriate PPI index, pursuant to Invitation to Bid 12-23, Corrosion Control Chemical and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Invitation to Bid (ITB) #12-23, Corrosion Control Chemical was issued on December 22, 2022. Three bids were received on January 31, 2023. Shannon Chemical Corporation of Malvern, PA., represents the lowest responsive, responsible bidder for Corrosion Control Chemical.
This chemical is a dry blended poly/orthophosphate compound that is fed at all water treatment plants. This chemical’s purpose is to reduce the corrosion of metal pipes in our distribution system and private plumbing systems. For over 30 years, the City has used corrosion control chemicals to meet the requirements of the EPA’s Lead and Copper rule and ensure the safety of its drinking water.
The initial contract period will be March 30, 2023, through March 29, 2024, with the option for two, one-year renewal terms available to the City. Renewal Terms allow for cost increases based on the Producer Price Index #061302 Inorganic Chemicals; renewal prices shall be firm for the respective annual term. The estimated pounds per day were provided by the bidding vendors. Public Utilities adds corrosion control chemicals to target at least a 1.0 mg/L total phosphorus residual in its drinking water. Historical usage, supply, and water quality variability has indicated the need to add additional chemicals to achieve this target. Public Utilities is requesting funds to cover this additional usage, should the need arise.
APPROPRIATION CODE AND AMOUNT:
Budgeted funds for FY23 are available in Public Utilities’ cost centers, cost code 551700 Bulk
Chemicals.
Funding for future fiscal years will be requested within contract calendar and spending limits.