STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: September 9, 2021
COUNCIL DISTRICT(S): 6, Outside City Limits
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Elizabeth Reich
______________________________________________________________________
SUBJECT
Title
Authorize a three- year master agreement for the purchase of ferric sulfate to be used in the water purification process for the Water Utilities Department - Chemtrade Chemicals US, LLC, lowest responsible bidder of two - Estimated amount of $37,184,000 - Financing: Dallas Water Utilities Fund
Body
BACKGROUND
This action does not encumber funds; the purpose of a master agreement is to establish firm pricing for goods, for a specific term, which are ordered on an as needed basis according to annual budgetary appropriations. The estimated amount is intended as guidance rather than a cap on spending under the agreement, so that actual need combined with the amount budgeted will determine the amount spent under this agreement.
This master agreement will provide for the purchase of ferric sulfate to be used in the water purification process for the Water Utilities Department. Ferric sulfate is used in the coagulation stage of the chemical treatment process to remove dirt, algae, bacteria, and other contaminants in the water as mandated by Texas Commission on Environmental Quality regulatory requirements.
This master agreement will continue to provide National Sanitary Foundation 60 certified ferric sulfate for use at all three water treatment plants. The Water Utilities Department is responsible for providing clean drinking water to approximately 2.3 million people in Dallas and surrounding communities.
As part of the solicitation process and in an effort to increase competition, the Office of Procurement Services used its procurement system to send out email notifications to vendors registered under relevant commodity codes. To further increase competition, the Office of Procurement Services uses historical solicitation information, the Internet, and vendor contact information obtained from user departments to contact additional vendors.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On September 26, 2018, City Council authorized a three-year master agreement for ferric sulfate to be used in the water purification process with Chemtrade Chemicals US, LLC by Resolution No. 18-1397.
FISCAL INFORMATION
|
Fund |
FY 2021 |
FY 2022 |
Future Years |
|
Dallas Water Utilities Fund |
$1,032,888.00 |
$12,394,666.00 |
$23,756,446.00 |
Council District Amount
6 $ 5,824,000.00
Outside of City Limits $31,360,000.00
Total $37,184,000.00
M/WBE INFORMATION
In accordance with the City’s Business Inclusion and Development Policy adopted on September 23, 2020, by Resolution No. 20-1430, as amended, the M/WBE participation on this contract is as follows:
|
Contract Amount |
Procurement Category |
M/WBE Goal |
M/WBE % |
M/WBE $ |
|
$37,184,000.00 |
Goods |
32.00% |
1.19% |
$450,000.00 |
|
• This contract does not meet the M/WBE goal, but complies with good faith efforts. |
|
• Chemtrade Chemicals US, LLC - Non-local; Workforce - 0.00% Local |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
|
Low Bid |
• Recommended vendor is based on the lowest competitive quoted price, who is also technically and financially capable of performing and completing the contract, and otherwise meets all material specification requirements |
|
|
• Negotiations are not allowed |
The Office of Procurement Services received the following bids from solicitation number BI21-00016502. We opened them on June 18, 2021. We recommend the City Council award this master agreement in its entirety to the lowest responsive and responsible bidder.
*Denotes successful bidder
Bidder Address Amount
*Chemtrade Chemicals US, LLC 90 E Halsey Rd. $37,184,000.00
Parsippany, NJ 07054
Pencco, Inc. 831 Barlet Rd. $39,444,000.00
Sealy, TX 77474
OWNER
Chemtrade Chemicals US, LLC
Scott Rook, President