Memorandum

City of Lawrence

Utilities Department

TO:	Diane Stoddard, Interim City Manager Casey Toomay, Assistant City Manager
FROM:	Beth Krishtalka, Assistant to Director
CC:	Dave Wagner, Utilities Director Mike Lawless, Deputy Director Mark Hegeman, Utilities Superintendent Carolyn Woodhead, Utilities Manager Sean Sloan, Purchasing Officer
DATE:	January 11, 2016
RE:	Water and Wastewater Chemical Bid No. B1546 Award Modification

Background

Pursuant to Bid No. B1546, awards for 2016 water and wastewater chemicals used in treatment processes were approved by the City Commission on December 1, 2015. Approved awards included a bid award to PVS Technologies, Inc. for ferric chloride at a unit price of $1.24/gallon for wastewater treatment. The next lowest bidder was Kemira Water Solutions, Inc. with a unit price of $1.3162/gallon. Department verification procedures including testing each ferric chloride delivery for quality, refusing shipments that do not meet required quality and requiring “as soon as possible” replacement.

Project Description

Low bidder PVS Technologies has informed staff it will charge shipping costs of $1,500 per load for any refused loads deemed to be of insufficient quality. Next lowest bidder Kemira Water Solutions has informed staff it does not charge shipping costs for insufficient quality replacement loads. Staff believes the imposition of shipping costs for chemicals not meeting quality standards is a significant cost factor not previously considered in the earlier bid award recommendations.

Staff Recommendation

In consideration of the additional shipping charges imposed by low bidder PVS Technologies for insufficient quality ferric chloride deliveries, staff recommends modification of Bid No. B1546 to award the ferric chloride bid for wastewater chemicals to next lowest bidder Kemira Water Solutions in lieu of PVS Technologies.

Funding

Funding for this purchase is from the 2016 Utilities Operations and Maintenance Budget.

Action

Modify Bid No. B1546 by awarding the bid for wastewater treatment ferric chloride chemicals to next lowest bidder Kemira Water Solutions.