Title
Purchase Supply of Water/Wastewater Disinfectant - Amendment 2 (Ordinance S-48014)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 144726 with DPC Enterprises, Inc. to provide additional time and funding. Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures for goods included in this amendment will not exceed $4,954,572.
Report
Summary
The purpose of this amendment is to continue to provide the Water Services Department's Water Production and Wastewater Treatment plants with a supply of water/wastewater disinfectant. The market is experiencing supply chain disruptions as a result of the current economic environment and COVID-19 pandemic, which has resulted in extended lead times, high or frequent manufacturer price increases, inflated freight costs, and supply and demand issues. In June 2021, a competitive process was conducted and canceled due to bid price increases that were significantly higher than the previous contract price. As a result, the Water Services Department has determined that a competitive solicitation process will not result in a best price or best value award for the City at this time. Extending the current agreement and adding funds for immediate and future use, will ensure the Water Services Department continues to provide safe and reliable water services to our customers without any disruptions in service.
Contract Term
The agreement’s term will be extended by two years to March 31, 2024.
Financial Impact
The initial authorization for the Water/Wastewater Disinfectant agreement was authorized for an expenditure not-to-exceed $4.3 million. Amendment 1 increased the authorization for the agreement by $553,000. This amendment will increase the authorization for agreement’s cost by an additional $4,954,572 for a new total not-to-exceed agreement value $9,807,572.
Funding is available in the Water Services Department's Operating budget.
Concurrence/Previous Council Action
The City Council approved:
- Water/Wastewater Disinfectant Agreement 144726 (Ordinance S-43355) on March 22, 2017; and
- Water/Wastewater Disinfectant Agreement 144726 - Amendment (Ordinance S-47419) on April 7, 2021.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.