Explanation
BACKGROUND: To modify and extend the existing city-wide contracts for the option to purchase Specialty, Industrial & Medical Gases for various City agencies to and including May 31, 2006. The Purchasing Office opened formal bids on June 13, 2002. The Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06. (Proposal No. SA000273DRM). FL001278, with Valley National Gases Inc., contract compliance number 55-0460738, and FL001283, with Airgas Great Lakes, contract compliance number 38-2518089, were established in accordance with bids received.
1) Amount of additional funds: The estimated annual expenditure for the contracts is $70,000.00. The various City agencies must obtain approval to expend from their own budgeted funds for their estimated expenditures.
2) Reason additional needs were not foreseen: The need was foreseen. An extension is provided for in the original contract.
3) Reason other procurement processes not used: The same exact product is required as originally bid. Per the Producer Price Index, there is a 17.6% increase in the cost of production of industrial gases. No lower pricing/more attractive terms or conditions are anticipated through rebidding at this time.
4) How cost was determined: The cost, terms and conditions are in accordance with the original agreement
FISCAL IMPACT: No funding is required to extend the option contracts. The various City agencies must set aside their own funding for their estimated expenditures.
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. To maintain an uninterrupted supply of goods to the City Agency using the Universal Term Contract, this ordinance is be submitted as an emergency.
Title
To authorize and direct the Finance Director to modify and extend the cityw...
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