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CONSIDERATION AND AWARDING OF BID 1920-59 FOR THE PURCHASE OF LIQUID AMMONIA SULFATE FOR THE WATER TREATMENT FACILITY.
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BACKGROUND: On May 28, 2020, bids were opened for Bid-1920-59 for Liquid Ammonia Sulfate. Funds in the amount of $802,299 have been budgeted in the fiscal year 2020-2021 (FYE 2021) Water Fund Budget - Water Treatment Plant, Operating Chemicals (account 31955234-43108) for purchase of all treatment chemicals.
DISCUSSION: Specifications were sent to seven (7) vendors and two (2) bids were received. The low response to bid request is due to raw material availability. The lowest and best bid meeting all specifications was submitted by Brenntag in the amount of $0.125 per pound. This compares to last year at $0.1075 per pound for an increase of 16.3 percent. The main reason is due to increased freight charges and raw material costs and availability.
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.