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TO: Charles P. Balczun DATE: June 3, 1988 FILE. <br />County Administrator <br />SUBJECT: C"ANG>; ORDER To <br />IRC BID #409-CHEMICAIS <br />FROM•! /✓y"''--% REFERENCES: <br />Gus Ambler, C.P.M. <br />Purchasing Manager <br />1. DESCRIPTION AND CONDITIONS: <br />A terns contract to supply chemicals for the Utilities <br />Department was awarded in March 1988. Lot 5, Caustic <br />Soda was awarded to PB&S Chemicals. PB&S Chemicals has <br />requested that they be allowed to increase their <br />Price for Caustic Soda beginning July 1, 1988, because <br />the manufacturer they represent has increased their <br />cost. Purchasing recognizes that the supply market <br />for this chemical is vary volatile at this time. Our <br />original bid contained no clauses for price increases. <br />2. ALTERNATIVES AND ANALYSIS: <br />Theis' are two alternatives to resolve this problem. <br />First the County could accept this price change as being <br />reasonable because of the nature of this commodity. <br />Second, we -could cancel this portion of the term contract <br />and rebid. <br />3. RECOrMgNDATION AND FUNDING: <br />Staff recommends that this change to Lot 5, Caustic Soda <br />be accepted, increasing the price from $265.00 per ton to <br />$334.00 per ton. This should be done by negotiation rather <br />then additional bidding. <br />Budgetary approval will be confirmed for expenditure <br />from Utilities Services on an as needed basis, before <br />purchase orders are placed. <br />Purchasing Manager Gus Ambler advised that the contract has <br />a 30 -day cancellation clause for either the contractor or the <br />County. The firm wishes to raise their price and our option is <br />to either cancel or accept the increase. <br />Administrator Balczun advised that staff is requesting <br />authorization to purchase and maintain a reasonable stockpile of <br />caustic soda, which is used at the wastewater treatment plant, <br />until such time as we can rebid it. Apparently, it is a very <br />volatile market. <br />42 <br />BOOK 7 3 FACE 89 <br />