Explanation
BACKGROUND: This legislation authorizes the Finance and Management Director to modify an existing Universal Term Contract (UTC) for the option to obtain Mainline Couplings, Clamps, and Various Parts with Ferguson US Holdings Inc. This contract provides parts to repair and replace water distribution lines throughout the City of Columbus service area. The Division of Water is the primary user for these items. This modification is necessary to allow price increases that exceed the increases currently allowed under the existing terms of the UTC due to fluctuating markets and an increase in the cost of doing business as requested by the vendors. The contract, PO447177, was established in accordance with Request for Quotation RFQ026916 and will expire March 31, 2026.
No additional funds are necessary to modify the option contract as requested. There is no change in the type of products being procured. The original contract was formally bid. The remainder of the original terms and conditions remain in effect.
Pursuant to Section 329.09(a) of Columbus City Codes:
(1) Amount of additional funds to be expended under the modification: No additional funding is required to modify the UTC. Agencies ordering from the UTC will secure their funding for its use according to the new price schedule for the UTC.
(2) Why the need for additional goods or services could not be foreseen at the time the contract was initially awarded: N/A; not adding goods/services with this modification.
(3) Why it would not be in the city's best interests to have the additional contract requirements awarded through other procurement processes specified in this chapter: The existing UTC was competitively bid and price increases are due to market fluctuations and rising costs of doing business. It is important that the ability to order these supplies continues without interruption for the users of this UTC.
(4) How the price for the additional goods or services which are the subject of the modification was determined: No additional goods are being added, but manufacturers provided price increases and reasoning for the increases on existing products covered by the UTC.
EMERGENCY DESIGNATION: The Finance and Management Department respectfully requests this legislation be considered an emergency because mainline couplings, clamps, and various parts are needed to maintain water distribution service without interruption. The following manufacturers’ prices increased by the percentages noted due to an increase in the cost of doing business, and price increases need to be implemented on the contract immediately to continue orders:
Sigma - 22.75 - 30.75%
Mueller - 20%
Romac - 20%
Ford Meter Box - 20%
GFI - 20%
FISCAL IMPACT: No additional funding is required to modify the option contract. The Division of Water must set aside its own funding for its estimated expenditures.
Title
To authorize the Finance and Management Director to modify an existing Universal Term Contract with Ferguson US Holdings Inc. to allow for manufacturer price increases for the option to purchase Mainline Couplings, Clamps, and Various Parts; and to declare an emergency. ($0.00)
Body
WHEREAS, it is necessary to modify the existing Universal Term Contract with Ferguson US Holdings Inc. for the option to obtain Mainline Couplings, Clamps, and Various Parts to allow for price increases above the threshold currently allowed by the contract for the following manufacturers: Sigma, Mueller, Romac, Ford Meter Box, and GFI. The price increases are requested by Ferguson US Holdings Inc. as a result of increases in the cost of doing business and fluctuating markets; and
WHEREAS, an emergency exists in the usual daily operation of the Division of Water in that it has a continuous need to purchase parts to repair and replace water distribution lines throughout the City of Columbus service area and it is necessary to authorize the Finance and Management Director to immediately modify a Universal Term Contract with Ferguson US Holdings Inc. for the option to obtain Mainline Couplings, Clamps, and Various Parts so that such purchases can continue immediately, thereby preserving the public health, safety, and welfare; now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance and Management Director is hereby authorized to modify an existing Universal Term Contract with Ferguson US Holdings Inc. for the option to obtain Mainline Couplings, Clamps, and Various Parts to allow for price increases beyond those allowed by the terms of the current contract for the following manufacturers: Sigma, Mueller, Romac, Ford Meter Box, and GFI.
SECTION 2. That this modification is in accordance with relevant provisions of Chapter 329 of the Columbus City Codes.
SECTION 3. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.