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CONSIDERATION AND AWARDING OF BID 1920-58 FOR THE PURCHASE OF FERRIC SULFATE FOR THE WATER TREATMENT FACILITY.
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BACKGROUND: On May 28, 2020, bids were opened for Bid 1920-58 for Ferric Sulfate. Ferric Sulfate is used as a coagulant in the treatment of water. Funds in the amount of $802,299 have been budgeted in the fiscal year 2020-2021 (FYE 2021) Budget, Water Fund - Water Treatment Plant - Operating Chemicals (account 31955234 43108) for purchase of all treatment chemicals.
DISCUSSION: Specifications for Bid-1920-58 for Ferric Sulfate were sent to five (5) vendors and two (2) bids were received. Non bids were due to uncertain costs and supply demands. The lowest and best bid meeting all specifications was submitted by Chemtrade Chemicals US, LLC of Parsippany, New Jersey, in the amount of $424 per ton for 10%, and $375 per ton for 12%. This compares to a cost of $356 per ton last year for the 10%, an increase of 19.10 percent and a cost last year of $316.67 per ton for 12%, an increase of 18.42 percent. This increase has occurred due to shipping/transporting costs in the railroad industry.
RECOMMENDATION: Purchases will be made throughout FYE 2021. Bids have been examined by staff and found to be in order and proper as to form. Based upon the above information, staff recommends acceptance of the low bid as listed above.