Background:
The Utilities Department requires a continuous supply of sodium hypochlorite to treat wastewater and potable water in their plants.
The City of Fort Lauderdale is the lead agency for the Cooperative Bid the City of Sunrise is currently using for supply of sodium hypochlorite. That Bid has two (2) one-year renewals available, however the vendor, Allied Universal Corp. advised that they were unable to renew at the same cost and requested an increase. As a result, the City of Fort Lauderdale issued a brief extension to the contract and elected to issue a new, Bid Event No. 519-2, on behalf of the Cooperative.
The City’s current cost for this chemical for a full truckload is $1.47 cents per gallon. This cost is proposed to increase 13%, to $1.66 per gallon for the lowest priced offered. The City’s current cost for this chemical for less than a full truckload is $1.57 cents per gallon. This cost is proposed to increase 12%, to $1.76 per gallon for the lowest price offered. Estimated annual usage is 768,000 gallons for full truckloads, which based upon the new pricing would equate to a cost of approximately $1,274,880 annually, and 51,000 gallons for less than truckloads, which based upon the new pricing would equate to a cost of approximately $89,760 annually. The total estimated annual cost using the new pricing would be approximately $1,364,640.
Due to uncertainty in the chemical industry and impending tariffs, it is recommended that the City of Sunrise continue to participate in a Cooperative Bid for Sodium Hypochlorite. The City of Sunrise will benefit from volume purchases when consolidating our purchasing power with other municipalities in the cooperative including: Delray Beach, Coral Springs, Broward County and the City of Fort Lauderdale.
The Southeast Florida Governmental Purchasing Cooperative Group with the City of Fort Lauderdale as the lead agency, awarded Bid Event No. 519-2 for Sodium Hypochlorite to Allied Universal Corp. and Odyssey Manufacturing Co. under the terms of the Southeast Florida Governmental Purchasing Cooperative Group. This is a two (2) year award with two (2) one-year renewals options. The unit pricing proffered by Allied Universal Corp. is more favorable for both the full truckload and less than full truckload unit costs, however, Odyssey Manufacturing Co. is available in the event that Allied Universal Corp. is unavailable to provide deliveries.
Since these purchases will be made using an existing government contract, the City's formal bidding procedures are waived pursuant to Section 5-173(c)(4) of the Code of the City of Sunrise, Florida.