Background:
The Utilities Department contracts services to haul wastewater biosolids (sludge) from its Springtree and Sawgrass Wastewater Treatment Plants (WWTP) to an approved Residual Management Facility (RMF) as regulated by the Florida Department of Environmental Protection. The Southwest WWTP biosolids are hauled and processed at the Sawgrass WWTP.
The current contract for Sludge Cake Hauling and Disposal services awarded in March of 2024 has two (2) one-year renewal options remaining. However, the vendor declined to renew due to the significant increases in this industry as a result of full implementation of Florida's revised biosolids rule (F.A.C. 62-640) along with uncertainty of new regulations.
Bid No. 26-34-01-VH was advertised, and four responses were received. The lowest responsive and responsible bidder, H & H Liquid Sludge Disposal, Inc. (H&H), provided a price of $132.00 per wet ton, whereas the City's current contract has a rate of $84.84 per wet ton. This represents an increase of approximately 56%. The second lowest bidder submitted a price which represents an approximate 63% increase.
Staff conducted research into comparison of pricing with other municipalities and found two comparable contracts that are higher than what the City is being offered under this bid. Research also showed that one additional comparable contract will not be renewed as that vendor cannot continue to hold pricing. Other contracts identified were not comparable because the City's specifications identify "raw" biosolids versus "stabilized".
Additionally, staff requested a price clarification from H&H and they explained regulatory changes were considered and reflected in their pricing. The updated rule significantly restricts land application through tighter permitting requirements, nutrient loading limits, and operational constraints. Staff has been able to determine cost reasonableness when all of these factors are considered.
Reference checks were performed for H & H Liquid Sludge Disposal, Inc. and all references were favorable. The Purchasing Office and the Utilities Department have reviewed the response and recommend an award for these critical services.
No Sunrise vendors were solicited because there are no vendors listed in the Business Tax License directory that supply these services.