Explanation
BACKGROUND: To modify the existing city-wide UTC contract for the option to purchase Highway Rock Salt to include the attached modification negotiated on behalf of the City by the City Attorney's Office. Formal bids were opened by the Purchasing Office on August 3, 2006. The Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06. (Proposal No. SA002110). One contract was established in accordance with bids received and will expire on July 31, 2009. The following contract will be modified:
FL003290, Cargill, Inc. - Deicing Technology Business Unit, CC# 41-0177680 Expires 6/16/2010
1. Amount of additional funds: The estimated expenditure for this contract is $ 1,800,000.00 annually
($ 885,000.00 has been encumbered this winter season). The Public Service Department and other City Agencies will obtain separate approval to expend from their own budgeted funds for their estimated expenditures.
2. Reason for modification: This modification is the negotiated resolution of a dispute between the City and Cargill over the original contract terms.
3. Reason other procurement processes not used: Product shortages, limited supplier pool, and being in the midst of the winter season made any other process less likely to succeed.
4. How cost was determined: In exchange for a guarantee by the City to purchase 16,000 to 20,000 additional tons of highway rock salt prior to July 31, 2009 (or pay a storage fee), Cargill agrees to reduce the current contract price by $4.42 per ton to a fixed price of $54/ton.
Cargill, Inc. is not debarred according to the Federal Excluded Parties Listing or the State Auditor's Findings For Recovery Database.
FISCAL IMPACT: No funding is required to extend the option contracts. Various City agencies must set aside their own funding for their estimated expenditures.
To maintain an uninterrupted supply of service to the City Agency using the Universal Term Contract, ...
Click here for full text