From
Marysol Alagenchev
Title
Price agreement for Sodium Hypochlorite from Petra Chemical Company through a national inter-local agreement with BuyBoard at an estimated annual cost of $96,750 for one year with the option to renew for four (4) additional one-year periods totaling $483,750 if all extensions are exercised and authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City's obligation during the renewal terms
Presenter
Ron McCuller, 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, Sodium Hypochlorite will be injected into source storage and distribution points at various locations. The addition of Sodium Hypochlorite will also assist with addressing those areas within the water distribution system which may experience low residuals resulting in water quality issues.
As with all our "supply contracts", the total bid price ($483,750.00) 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 271.102 of the Local Government Code authorizes local governments to participate in a cooperative purchasing program with another local government or local cooperative organization. In lieu of competitive bidding, items and services may be purchased through such agreements as the agreements have already been bid by the sponsoring entity or agency. The City of Grand Prairie has master inter-local cooperative agreements with various entities including BuyBoard.
The BuyBoard is able to save money by pooling the impressive purchasing power of their members, which include hundreds of school districts, municipalities, counties, other local governments, and nonprofits across Texas. They use the power of numbers as leverage to get better prices with the same vendors we use now.
Petra Chemical Company through their BuyBoard contract offers Sodium Hypochlorite.
The BuyBoard contract 526-17 began 4/01/2017 and will expire 03/31/2020, with 4 one-year extensions.
Financial Consideration
Funding for the sodium hypochlorite is available in FY 2016/2017 Water/Wastewater Operating Fund, Water Distribution Operating Fund (361211), Chemical Supplies (60190). Funding for future fiscal years will be paid from that year’s approved budgets.