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Consent Item �`a <br />Indian River County, Florida <br />Department of Utility Services <br />Board Memorandum <br />Date: April 7, 2021 <br />To: Jason E. Brown, County Administrator <br />From: Vincent Burke, PE, Director of Utility Services <br />Through: Cindy Corrente, Finance Manager, Utility Services <br />Prepared by: Terry Southard, Operations Manager, Utility Services <br />Subject: Request to Waive Bid Process for Caustic Soda Chemicals <br />Background / 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 out <br />to bid for an annual locked -in rate. However, the caustic soda market is quite volatile, and the bid process <br />does not yield the best prices. Therefore, staff typically seeks price quotes every 8-12 weeks in order to <br />ensure we are getting the lowest cost available for caustic. As a result, we process several purchase orders <br />each year for caustic. IRCDUS typically obtains quotes from the same three vendors: Allied Universal Corp, <br />Brenntag Mid -South Inc., and Harcros Chemicals Inc. <br />It is staff's intention to encumber a minimum of $50,000.00 each time a quote is obtained. Encumbrances <br />over $35,000.00 require the County Administrator's approval. <br />Funding: <br />Funds for caustic soda are available in the Chemical account within the Utilities Operating Fund. Utilities <br />operating funds are generated from water and sewer revenues. A total of $256,000.00 is budgeted for caustic <br />soda in Fiscal Year 2020/2021, with $106,000.00 remaining available. <br />Description <br />Account Number <br />Amount <br />Water Production/Chemicals <br />47121936-035230 <br />$106,000.00 <br />Recommendation: <br />Staff recommends that the Board of County Commissioners waive the requirement for bids for caustic <br />soda and authorize the Purchasing Manager to approve purchase orders up to the available budgeted <br />amount to the vendor offering the lowest or best quote. <br />87 <br />F:\Utilities\UTILITY- EMPLOYEE FOLDERS\Terry South ard\Agendas\Agenda-219 Chemical Caustic Soda Waive Bid Process cmc jh.docx <br />