Title
MOTION TO APPROVE THE PURCHASE OF SODIUM HYPOCHLORITE FROM ALLIED UNIVERSAL CORP. ON AN AS-NEEDED BASIS UTILIZING THE SOUTHEAST GOVERNMENTAL COOPERATIVE PURCHASING GROUP (CO-OP) BID #EVENT 139-0 IN AN AMOUNT NOT TO EXCEED THE LIMITS OF THE APPROVED BUDGET FOR THIS PURPOSE, AS MAY BE AMENDED, PURSUANT TO SECTION 35.18(C)(6) OF THE CITY'S CODE OF ORDINANCES.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinances is regarding "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18(C)(6) states that “Cooperative purchasing plans are exempt from this section.”
- Section 35.21 of the City’s Code of Ordinances is titled “AWARD OF CONTRACT.”
- Section 35.21(A) of the City’s Code of Ordinances is titled “City Commission approval.”
- Section 35.21(A)(1) states, “An initial purchase of, or contract for, commodities or services, in excess of $25,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed.”
SUMMARY EXPLANATION AND BACKGROUND:
1. As part of the OMI/Jacobs agreement, the City is responsible for providing operating chemicals used to treat the City's water and wastewater.
2. Sodium Hypochlorite 12.5% is used to disinfect water and wastewater at both the City's water treatment and wastewater treatment plants.
3. The City currently utilizes the Southeast Florida Governmental Cooperative Purchasing Group (Co-Op) Bid #12525-312 which has exhausted all renewal periods and expired on August 31, 2023.
4. On June 22, 2023, Bid # Event 139-0 was advertised by the City of Fort Lauderdale, as the lead agency for the Co-Op, for the purchase of Sodium Hypochlorite. On July 6, 2023, the City of Fort Lauderdale opened three (3) bids from the following vendors:
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Tanker |
Less Than |
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Vendor Name |
Load |
Tanker Load |
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|
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Allied Universal |
$1.47 |
$1.57 |
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Corporation |
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Univar Solutions |
No Bid |
No Bid |
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USA, Inc |
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|
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|
Odyssey |
$2.25 |
$2.45 |
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Manufacturing Co. |
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5. On August 22, 2023 the City of Fort Lauderdale's City Commission approved the two (2) year agreement with Allied Universal Corporation which commences on September 1, 2023 and expires August 31, 2025, with the option to extend the agreement for (2) two annual renewal terms.
6. The City of Pembroke Pines is estimating 320,000 gallons of Sodium Hypochlorite at the Water Treatment Plant (at the full tanker load rate of $1.47/gallon) and 35,000 gallons of Sodium Hypochlorite at the Waste Water Treatment Plant (at the less than full tanker load rate of $1.57/gallon), which equates to an estimated annual expense of $525,350.00.
7. Staff recommends City Commission approval of the purchase of Sodium Hypochlorite from Allied Universal Corp. on an as-needed basis utilizing the Southeast Florida Governmental Cooperative Purchasing Group (Co-Op) Bid # Event 139-0 in an amount not to exceed the limits of the approved budget for this purpose, as may be amended (currently estimated at
$525,350.00 annually), pursuant to section 35.18(C)(6) of the City's Code of Ordinances.
Reviewed by Commission Auditor.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $525,350.00 (320,000 gallons x $1.47 [tanker loads]) + (35,000 gallons x $1.57 [less than tanker loads])
b) Amount budgeted for this item in Account No:
$470,400.00 in Account No. 471-533-6031-552430-0000-000-0000- (Operating chemicals)
$54,950.00 in Account No. 471-535-6022-552430-0000-000-0000- (Operating chemicals)
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project:
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Current FY |
FY 2024 |
Year 3 |
Year 4 |
Year 5 |
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Revenues |
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|
|
|
|
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Expenditures |
$43,779.17 |
$481,570.83 |
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Net Cost |
$43,779.17 |
$481,570.83 |
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e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service?