From
Marysol Alagenchev
Title
Price agreement with the sole source provider Hach Company ($50,000 annually) for CHEMKEYS chemicals for one year with the option to renew for four additional one-year periods totaling $250,000 if all extensions are exercised.
Presenter
Gabe Johnson, Public Works Director
Recommended Action
Approve
Analysis
In order to facilitate and provide for water quality in the water distribution system and water storage facilities, the CHEMKEYS chemicals are used on the HACH multi test meters, which is one unit for measuring free ammonia, total chlorine, nitrites, free chlorine and mono-chloramines. Hach Company is the only manufacturer of a multi meter to perform the four daily tests currently conducted which require the following chemicals (free ammonia, total chlorine, free chlorine and mono-chloramines) and the new TCEQ required test for nitrates. Using these meters and chemicals reduces test time, chemical reagents and performs the tests for nitrates as required by TCEQ.
As with all our "supply contracts", the total bid price ($50,000) reflects price agreements totaling a much higher amount than we will actually spend in the current fiscal year. The purchase quantities are not guaranteed to the vendor, quantities will be purchased only on an "as needed" basis and this agreement will overlap into next fiscal year. The overstatement of quantities simply reflects the fiscal year overlap of the contract and prevents unnecessary delay in our maintenance and operations, by affording the availability of products needed without having to re-bid.
Chapter 252, Section 022 of the Texas Local Government Code allows for an exemption to competitive bidding requirements for procurement of items or services that are available from only one source. Consequently, Section 048 of the same chapter which imposes a maximum allowable change order of 25% of the original contract value does not apply with the use of an exemption.
Financial Consi...
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