Title
Hydrocyclone Replacement Parts Contract (Ordinance S-45895)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with FL Smidth USA, Inc. to provide Krebs hydrocyclone replacement parts for the Water Services Department. Further request to authorize the City Controller to disburse all funds related to this item. The fee for services will not to exceed $425,568.
Report
Summary
The Deer Valley Water Treatment Plant treats surface water to produce potable drinking water for the City of Phoenix. Part of the process requires sand and sediment to be pumped from a wasteline to a hydrocyclone separator, where settled liquid is separated from silica sand. This contract will provide the Krebs hydrocyclone replacement parts used in this process, which is necessary for water treatment.
Procurement Information
Under Phoenix City Code section 43-11(D) and the City's Administrative Regulation 3.10, the competitive procurement process was waived because FL Smidth is the sole source for these essential Krebs parts. A determination was issued that described the lack of other sources.
The Water Services Department requests a waiver from Phoenix City Code section 43-18(C). FL Smidth seeks to restrict the standard indemnification terms that Risk Management has established to protect the City from liability. FL Smidth will only agree to defend and indemnify the City for liability arising directly out of third-party personal/property-injury claims.
Contract Term
The contract term will be for six years, effective on July 22, 2019, with an end date of July 21, 2025.
Financial Impact
The aggregate contract value will not exceed $425,568. Funding is available in the Water Services Department's Operating budget.
Location
Deer Valley Water Treatment Plant
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.