Title
Water and Wastewater Treatment Chemicals
Action
Action:
A. Approve the purchase of magnesium hydroxide by the sole source exemption,
B. Approve a contract with Premier Magnesia, LLC for the purchase of magnesium hydroxide for the term of one year,
C. Reject the low bids submitted by the following companies for water and wastewater treatment chemicals:
- JCI Jones Chemicals, Inc.,
- Momar, Inc.,
D. Approve unit price contracts for the purchase of water and wastewater treatment chemicals for one year to the following:
- PVS Technologies, Inc.,
- Brenntag Mid-South, Inc.,
- Univar Solutions USA Inc. dba Univar USA Inc.,
- Environmental Operating Solutions, Inc. dba EOSi, and
E. Authorize the City Manager to renew the contract with Premier Magnesia, LLC for up to three, one-year terms with possible price adjustments and to amend the contract consistent with the purpose for which the contract was approved.
Body
Staff Resource(s):
Angela Charles, Charlotte Water
Ron Hargrove, Charlotte Water
Sole Source Exemption
§ NC General Statute Section 143-129(e)(6) provides that formal bidding requirements do not apply when:
- Performance or price competition are not available;
- A needed product is available from only one source or supply; or
- Standardization or compatibility is the overriding consideration.
§ Sole sourcing is necessary for this contract because there is only one supply source
§ City Council approval is required for any purchases made under the sole source exception.
Explanation
§ Charlotte Water uses a variety of chemicals in the water and wastewater treatment process, and each chemical plays an essential role to ensure the treated water is safe for customers and the environment and to eliminate odor and corrosion in the wastewater collection system.
Action A, B, and E
§ Premier Magnesia, LLC is the only source of supply for the required magnesium hydroxide.
§ Annual expenditures are estimated to be $4,475,000.
Action C and D
§ On April 24, 2023, the city issued an Invitation to Bid (ITB) for water and wastewater treatment chemicals; nine bids were received.
§ The companies selected were the lowest responsive, responsible bidders.
§ The low-bid submitted by JCI Jones Chemicals, Inc. was found not to be responsible for failing to meet the city’s contract terms and conditions.
§ The low-bid submitted by Momar, Inc. was found not to be responsible for failing to meet the established specifications and requirements outlined in the Invitation to Bid.
§ Annual expenditures are estimated to be $4,600,000.
Charlotte Business INClusion
Action A, B, and E
This is a sole source contract and is exempt (Part A: Appendix 1.27 of the Charlotte Business INClusion Policy).
Action C and D
Per Charlotte Business INClusion Policy: Part C: Section 2.1(a) The city shall not establish Subcontracting Goals for Contracts where: (a) there are not subcontracting opportunities identified for the contract; or (b) there are no SBEs or MBEs certified to perform the scope of work that the city regards as realistic opportunities for subcontracting.
This contract meets the provisions of (a) - No subcontracting opportunities
Fiscal Note
Funding: Charlotte Water Operating Budget