STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: August 28, 2024
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Donzell Gipson
______________________________________________________________________
SUBJECT
Title
Authorize a three-year master agreement for the purchase of certified drinking water treatment chemicals and filtration materials for the Water Utilities Department - Chemtrade Chemicals US LLC in the estimated amount of $40,888,682.60, Texas Lime Company in the estimated amount of $17,957,189.12, Polydyne, Inc. in the estimated amount of $5,986,400.00, Chameleon Industries, Inc. in the estimated amount of $2,484,000.00, Carbon Activated Corporation in the estimated amount of $2,450,000.00, Pencco, Inc. in the estimated amount of $1,263,924.00, and Evonik Corporation in the estimated amount of $603,642.00, U.S. Peroxide, LLC dba USP Technologies in the estimated amount of $823,429.00, lowest responsible bidders of twelve - Total estimated amount of $71,633,837.72 $71,853,624.72 - 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 NSF/ANSI certified drinking water treatment chemicals and filtration materials for the Dallas Water Utilities (DWU) Department. These goods are used in the disinfection, coagulation, and filtration processes to achieve regulatory compliance as required by the U.S. Environmental Protection Agency (USEPA) and the Texas Commission on Environmental Quality (TCEQ).
This agreement provides for the purchase of polymer for coagulation, anthracite for filtration, and hydrofluosilicic acid (fluoride) as required by Resolution No. 65-4383, approved on August 9, 1965 to fluoridate drinking water at all three water purification plants.
The chemicals provided in this master agreement will include:
• Liquid cationic polymer (LCP) - Used by DWU for decades as a coagulant to aid in the chemical treatment process, removing suspended, and colloidal particles from water. LCP also lowers the amount of ferric sulfate needed to reduce cloudiness in the water as required by TCEQ.
• Liquid ammonia sulfate - Applied to chlorinated water to form chloramines which serves as one element of a multi-pronged strategy for meeting disinfectant requirements for drinking water as required by the USEPA and TCEQ.
• Fluoride - Fluoride is applied to the drinking water to achieve the optimal level for prevention of tooth decay as recommended by the U.S. Centers for Disease Control. Fluoride is added in the treatment process as hydrofluosilicic acid.
• Ferric Sulfate - Used in the coagulation stage of the water purification process, ferric sulfate helps remove dirt, algae, bacteria, and other contaminants in the water as mandated by the USEPA and TCEQ.
• Hydrogen Peroxide - Applied for the enhancement of the biological filtration process, peroxide improves hydraulic performance, helping ensure production continuously meets both demand and quality standards set by the USEPA and TCEQ.
• Anthracite - Used as filter media in the water purification and wastewater treatment processes, anthracite is used in the water filtration process to meet stringent regulatory compliance requirements for the removal of microscopic particles and microorganisms as well as to improve the color and taste in drinking water. Anthracite is also used to aid in the removal of suspended solids from the wastewater prior to being discharged to the Trinity River. The removal of solids from wastewater is mandated by regulatory agencies and helps DWU meet stringent effluent discharge permit requirements.
• Hydrated Lime - Used at the Bachman Water Treatment Plant for pH adjustment, DWU selected hydrated lime due to its improved performance at the plant. The Southside Wastewater Treatment Plant uses hydrated lime in the wastewater process to help balance the pH side stream flow.
• Quicklime - Used in both the water purification and wastewater treatment processes, quicklime is used by 3 water purification plants and 1 wastewater treatment plant to make lime slurry which is used to adjust the pH level of the water. Additionally, lime slurry made with quicklime is used in wastewater treatment to remove suspended solids and eliminate odors as required by the USEPA. Quicklime has been used by DWU for over twenty years in both water and wastewater treatment process.
These goods are essential for the proper disinfection, coagulation and filtration processes needed to provide essential water and wastewater services the residents of the City and its surrounding communities, on average, treating approximately 421 million gallons of safe, high quality drinking water and 203 million gallons of wastewater per day.
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, 14 2022, the City Council authorized a two-year master agreement for the purchase of drinking water treatment chemicals for the Water Utilities Department with Univar Solutions USA, lnc., Polydyne, lnc., Chameleon lndustries, lnc., and Carbon Activated Corporation by Resolution No. 22-1371.
On December, 14 2022, the City Council authorized a two-year master agreement for the purchase of drinking water treatment chemicals for the Water Utilities Department with Texas Lime Company, Evonik Corporation, Pencco, lnc., and Chemtrade Chemicals US, LLC by Resolution No. 22-1785.
FISCAL INFORMATION
|
Fund |
FY 2024 |
FY 2025 |
Future Years |
|
Dallas Water Utilities Fund |
$1,755,084.00 |
$23,877,944.00 |
$46,000,809.72 $46,220,596.42 |
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 |
|
$71,633,837.72 $71,853,624.72 |
Goods |
32.00% |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
0.00% |
0.00% |
0.00% |
|
• The Request for Bid method of procurement resulted in the lowest responsive bidders being seleted. |
|
• Chemtrade Chemicals US LLC - Non-local; Workforce - 0.00% Local • Texas Lime Company - Local; Workforce - 0.00% Local • Polydyne, Inc. - Non-local; Workforce - 0.00% Local • Chameleon Industries, Inc. - Local; Workforce - 22.73% Local • Carbon Activated Corporation - Non-local; Workforce - 0.00% Local • Pencoo, Inc. - Non-local; Workforce - 1.26% Local • Evonik Corporation U.S. Peroxide, LLC dba USP Technologies - 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 BF24-00024807. We opened them on May 31, 2024. We recommend the City Council award this master agreement to the lowest responsive and responsible bidders by group. Information related to this solicitation is available upon request.
*Denotes successful bidders
Bidder Address Amount
*Chemtrade Chemicals 90 East Halsey Rd. Multiple groups
US LLC Suite 200
Parsippany, NJ 07054
*Texas Lime Company 5429 LBJ Fwy. Multiple groups
Suite 230
Dallas, TX 75240
*Polydyne, Inc. One Chemical Plant Rd. Multiple groups
Riceboro, GA 31323
*Chameleon Industries, Inc. 3004 State Hwy. 31 W Multiple groups
Corsicana, TX 75109
*Carbon Activated Corporation 2250 South Central Ave. Multiple groups
Compton, CA 90220
*Pencoo, Inc. 831 Barlett Rd. Multiple groups
Sealy, TX 77474
*U.S. Peroxide, LLC dba 5640 Cox Rd. Multiple groups
USP Technologies Glen Allen, VA 23060
*Evonik Corporation 2 Turner Pl. Multiple groups
Piscataway, NJ 08855
Baker Services Inc. 12404 Morton Rd. Multiple groups
Atchison, KS 66002
Lhoist North America 5600 Clearfork Main Multiple groups
Suite 300
Ft Worth, TX 76109
Unifilt Corportion 375 Johnson St. Multiple groups
Wilkes Barre TWP, PA 18702
Univar Solutions USA Inc 8201 South 212th St. Multiple groups
Kent, WA 98032
USP Tech 5640 Cox Rd. Multiple groups
Glen Allen, VA 23060
OWNERS
Chemtrade Chemicals US LLC
Scott Rook, Chief Executive Officer
Texas Lime Company
Timothy Bryne, Chief Executive Officer
Polydyne, Inc.
John Pittman, President
Chameleon Industries, Inc.
Jason Garza, Vice President
Carbon Activated Corporation
Lionel Perera, President
Pencco, Inc.
RL Horne, President
Evonik Corporation
Marieke Corson, Sales Director
U.S. Peroxide, LLC dba USP Technologies
Steven A, Hire, President