Title
Street Maintenance Deicing Salt
Action
Action:
A. Award a unit price contract to the lowest responsive bidder, Cargill Inc., for the purchase of Sodium Chloride Road Salt for one year, and
B. Authorize the City Manager to renew the contract for up to four, one-year terms with possible price adjustments and to amend the contract consistent with the purpose for which the contract was approved.
Staff Resource(s):
Danny Pleasant, Transportation
Capryce Crowder, Transportation
Explanation
§ Deicing Salt is used by the Charlotte Department of Transportation for the purposes of pretreating roadways during snow and ice conditions.
§ On April 12, 2017, the City issued an Invitation to Bid; four bids were received from interested service providers.
§ Cargill Inc. was selected as the lowest responsive, responsible bidder.
§ Bidding for this solicitation was conducted using a reverse auction handled by a third party vendor Peralta Garcia.
- A reverse auction is a type of auction in which the roles of buyer and seller are reversed, and sellers compete to obtain business from the buyer by decreasing their unit pricing bids over the duration of the auction.
§ The reverse auction process resulted in a reduced bid price of $80.89 per ton, approximately an 18 percent savings over previous pricing.
§ Estimated annual expenditures are $300,000.
Charlotte Business INClusion
No subcontracting goals were established because there are no subcontracting opportunities (Part C: Section 2.1(a) of the Charlotte Business INClusion Policy).
Fiscal Note
Funding: Charlotte Department of Transportation Operating Budget