Explanation
BACKGROUND: For the option to purchase Hydrofluosilicic Acid for the Division of Water, Department of Public Utilities. Hydrofluosilicic Acid is used in the City's water treatment process.
The term of the proposed option contract would be through March 31, 2011, with the option to extend for one additional year. The Purchasing Office opened formal bids on February 4, 2010.
The Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06 (Solicitation No. SA003485). Forty one bidders were solicited (MBE:0, FBE:0) two (MBE:0, FBE:0) bids were received.
Two bids were received, both proposals were rejected by the City as current market conditions prohibit the bidders from complying with the City's specifications in their entirety. Upon approval by the Public Utilities Director, the Purchasing Office informally reconsidered both bids and entered into negotiations with the lowest numeric bidder. These successful negotiations resulted in an agreement in which the City agrees that the vendor will not be responsible for costs incurred by the City in the event of a market shortage. A contract will now be established with Pencco Inc., as the lowest and best bid received.
The Purchasing Office is recommending award of a contract to the lowest and best bid:
Pencco Inc. CC# 742333384, (Expires 2/13/11) Iitem #1.
Total Estimated Annual Expenditure: $720,000.00
The company is not debarred according to the Excluded Parties Listing of the Federal Government and is not listed in the Auditor of State's database for Findings for Recovery.
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 Mail, Print Services and UTC Fund. The Division of Water will be required t...
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