Broward County Commission Regular Meeting
Director's Name: George Tablack
Department: Finance and Administrative Services Division: Purchasing
Information
Requested Action
title
MOTION TO APPROVE Southeast Florida Governmental Purchasing Cooperative Group, Contract No. 20-21B, for Furnish, Deliver and Discharge of Quicklime (Type 1-Pebble Lime), awarded as an open-end contract to low bidder, Lhoist North America of Alabama, LLC, for Water and Wastewater Services, for an initial three-year period in the estimated amount of $6,641,142, and authorize the Director of Purchasing to renew the contract for three one-year periods, for a six-year potential estimated amount of $13,282,284. The initial contract period shall begin on the date of award and terminate on October 31, 2023.
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Why Action is Necessary
In accordance with the Broward County Procurement Code, Section 21.135.a.1.(a), Cooperative Purchasing, the Purchasing Division may participate in cooperative purchasing agreements for the procurement of supplies with one or more local public or external procurement units, in accordance with an agreement entered into between the participants.
Additionally, Broward County Procurement Code, Section 21.31.a.4, Award Authority, Board approval is required for awards exceeding $500,000 that includes a single bidder, rejection of apparent low bidder, or protested award.
In accordance with the Broward County Procurement Code, Section 21.43, Board approval is required to approve all contracts for supplies or services of more than five years.
What Action Accomplishes
Provides approval of a source contract for the purchase of bulk chemical quicklime.
Is this Action Goal Related
No
Previous Action Taken
None.
Summary Explanation/Background
THE PURCHASING DIVISION AND THE PUBLIC WORKS DEPARTMENT/WATER AND WASTEWATER SERVICES RECOMMEND APPROVAL OF THE ABOVE MOTION.
The Office of Economic and Small Business Development did not reserve this procurement for Small Business Enterprises under the Sheltered Market Program or assign County Business Enterprise participation goals as there are no certified firms available that can provide the products and there are no opportunities for subcontracting (Exhibit 2).
The purpose of this contract is to furnish, deliver and discharge bulk chemical quicklime, specifically Pebble Lime, to be used in the treatment of potable water at Broward County water treatment plants.
The Southeast Florida Governmental Purchasing Cooperative Group (Co-op) is an organization of various Southeast Florida cities, counties and governmental agencies that provides for cooperative purchasing in which quantities for the same item are combined in order to achieve economies of scale through volume discount pricing. The City of Tamarac is the lead agency that facilitated the solicitation resulting in this Co-op Contract No. 20-21B. The annual estimated usage quantities were obtained from each participating agency prior to the bid solicitation. Each participating agency concurred with the bid specifications utilized by the City of Tamarac.
On September 23, 2020, the City of Tamarac awarded Co-op Contract No. 20-21B for an initial three-year contract term with three one-year renewal options (Exhibit 5). The initial contract term began on November 1, 2020 and expires on October 31, 2023.
This Co-op contract is to be used only by various participating government agencies listed in the contract. The initial term estimated approval amount of $6,641,142 is for the Type 1-Pebble Lime product and is inclusive of potential price adjustments; it reflects the County’s estimated usage and does not include the usage of the other Co-op members.
The Co-op contract allows for price adjustments (escalations/de-escalations) for product, rail freight, and truck freight on a quarterly basis on January 1st, April 1st, July 1st, and October 1st of each year. The contractor must submit sufficient documentation to the City of Tamarac to be given consideration for a price increase and must pass-on price decreases when the contractor’s costs are reduced. Cost adjustments, in all cases, shall reflect only a direct pass-through of costs, and no changes to the contractor's profit margin shall be permitted.
Water and Wastewater Services has reviewed the bid submitted by Lhoist North America of Alabama, LLC, and requests approval to utilize the Co-op contract (Exhibit 3). One vendor performance evaluation has been completed for Lhoist North America of Alabama, LLC; it has an overall rating of 3.98 out of a possible 5.0. A copy of the vendor performance evaluation is available upon request.
The Purchasing Division has reviewed the price submitted by Lhoist North America of Alabama, LLC, and determined the price is fair and reasonable (Exhibit 4).
Incumbent: Lhoist North America of Alabama, LLC, Contract Number and Title: OPN2115562G1, Furnish, Deliver and Discharge of Quicklime. Contract Term: November 14, 2017 through October 31, 2020. Expenditures to date: $4,976,679.
The amounts referenced in this agenda item were rounded to the nearest whole dollar. Vendor payments will be based on the actual total bid amount. The bid tabulation reflects the actual amount of the award.
There was no protest or appeal filed regarding this procurement.
The Co-op bid posted on August 16, 2020 and opened on August 31, 2020; two bids were received with no declinations (Exhibit 1).
Source of Additional Information
Brenda J. Billingsley, Director, Purchasing Division, (954) 357-6070
Fiscal Impact
Fiscal Impact/Cost Summary
Each requirement processed against this open-end contract will be funded by the appropriate source at the time of release.
Requisition No. WWO0004396