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i;a a/ <br />INDIAN RIVER COUNTY, FLORIDA <br />DEPARTMENT OF UTILITY SERVICES <br />Date: <br />November 29, 2018 <br />To: <br />Jason Brown, County Administrator <br />From: <br />Vincent Burke, P.E., Director of Utility Services <br />Through: <br />Cindy Corrente, Finance Manager, Utility Services <br />Prepared By: <br />Terry Southard, Operations Manager, Utility Services <br />Subject: <br />Request to Waive Bid Process for Caustic Soda Chemical <br />BACKG ROU N D/ANALYSIS: <br />Indian River County Department of Utility Services (IRCDUS) has two (2) water production facilities that <br />use caustic soda for the treatment of water. With most chemicals used in water production, staff goes <br />out to bid for an annual locked -in rate. However, the caustic soda market is quite volatile, and the bid <br />process does not yield the best prices. Therefore, staff typically seeks price quotes every 4-6 weeks in <br />order to assure we are getting the lowest cost available for caustic. As a result, we process several <br />purchase orders each year for caustic. IRCDUS typically obtains quotes from the same three vendors: <br />Allied Universal Corp, Brenntag Mid -South Inc., and Harcros Chemicals Inc. <br />Staff typically encumbers $50,000.00 each time a quote is obtained, with encumbrances over <br />$25,000.00 requiring the County Administrator's approval. <br />FUNDING: <br />Funds for the caustic soda purchase are available in the Chemicals account within the Utilities Operating <br />Fund. Operating funds are derived from water and sewer sales. A total of $256,000.00 is budgeted for <br />Caustic Soda in Fiscal Year 2018/2019. <br />Description <br />Account Number <br />Amount <br />219 Water Treatment - Chemicals <br />1 47121936-035230 <br />$256,000.00 <br />RECOMMENDATION: <br />Staff recommends that the Board of County Commissioners waive the requirement for bids for caustic <br />soda for Fiscal Year 2018/2019 and authorize the Purchasing Manager, after approval by the Budget Office, <br />to approve purchase orders and change orders for authorized firms up to the available budgeted amount. <br />C:\Users\legistar\AppData\Local\Temp\BCL Tech nologies\easyPDF 8\@BCL@6COE3744\@BCL@6COE3744.doc Page 1 off <br />12 <br />