Explanation
BACKGROUND: This legislation is for the option to establish a UTC contract for Liquid Oxygen for the Division of Water, the sole user. Liquid Oxygen will be used as an oxidation agent for potable water at both Hap Cremean and Dublin Road Water Plants. The term of the proposed option contract would be two and half (2-1/2) years, expiring March 31, 2018, with the option to extend for one (1) additional year.
The Purchasing Office opened formal bids on September 3, 2015. The City advertised and solicited competitive bids in accordance with the relevant provisions of Columbus City Code Section 329.06 relating to competitive bidding, Solicitation No. SA005989. Fifty-six (56) bids were solicited: (M1A-0, F1-1, MBR-2). Two (2) bids were received, but both were deemed non-responsive. The low bidder did not return the ANSI/NSF 60 certification with their bid, as specifically required. The other bidder also failed to return the certification and took exception to all of the City's terms and conditions. Division of Water has asked that the Purchasing Office seek clarification that the low bidder will obtain and submit a copy of their certification, which was successful. It is recommended that the City waive the competitive bidding procedure to allow for award to AirGas USA, LLC., the low bidder.
The Purchasing Office is recommending award to the lowest, responsible and best bidder as follows:
AirGas USA, LLC, MAJ, CC#56-0732648 expires 08/27/2017, All Items, $1.00.
Total Estimated Annual Expenditure: $440,000.00, Division of Water, the sole user.
The company is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search. This ordinance is being submitted as an emergency because, without emergency action, no less than 37 days will be added to this procurement cycle and the efficient delivery of valuable public services will be slowed.
FISCAL IMPACT: Funding to establish this option contract is budgeted in the General Fund. City Agencies will be required to obtain approval to expend from their own appropriations for their estimated annual expenditures.
Title
To authorize the Finance and Management Director to enter a contract for the option to purchase Liquid Oxygen with Airgas USA, LLC; to authorize the expenditure of $1.00 to establish the contract from the General Fund; to waive formal competitive bidding requirements; and to declare an emergency. ($1.00).
Body
WHEREAS, the Purchasing Office advertised and solicited formal bids on September 3, 2015 and two bids were received; and
WHEREAS, both bids were deemed non-responsive and it is necessary to waive bidding requirements in order to accept the low bid that failed to return a necessary certification with their bid which rendered their bid non-responsive. Said vendor will submit the certification prior to the contracts inception; and
WHEREAS, this ordinance addresses Purchasing objective of 1) maximizing the use of City resources by obtaining optimal products/services at low prices and 2) encouraging economic development by improving access to City bid opportunities and 3) providing effective option contracts for City agencies to efficiently maintain their supply chain and service to the public; and
WHEREAS, in order to maintain a supply of Liquid Oxygen, this is being submitted for consideration as an emergency measure; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management, Purchasing Office, in that it is immediately necessary to enter into this contract for an option to purchase Liquid Oxygen, thereby preserving the public health, peace, property, safety, and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance and Management Director be and is hereby authorized to enter into the following contract for the option to purchase Liquid Oxygen in accordance with Solicitation No. SA005989 until March 31, 2018 with the option to renew for one (1) additional year, as follows:
Airgas USA, Inc., All Items, $1.00
SECTION 2. That the expenditure of $1.00 is hereby authorized from General Fund, Organization Level 1: 45-01, Fund: 10, OCA: 450047, Object Level 3: 2270 to pay the cost thereof.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That this Council finds it in the best interests of the City to waive the relevant sections of Chapter 329 of Columbus Code relating to competitive bidding.
SECTION 5. That for the reason 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.