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The requested new price is $0.05 per gallon more than the other bid originally received ($2.28) in <br />response to Bid 2022004 and will result in a total increase of $36,524 over the remaining term of <br />the contract. Shrieve has efficiently provided sulfuric acid to Utilities plants for several years, and <br />staff believes their request to be moderate, considering existing supply chain issues. Furthermore, <br />staff anticipates the alternative of terminating the contract with Shrieve and rebidding would <br />result in much higher prices than the price increase requested. <br />Staff has drafted an amendment to the award to facilitate the quarterly modifications. Annual <br />extensions to the agreement will be brought to the Board for consideration, with a history of <br />escalations during the previous term. <br />Contract Spend to Date <br />at $1.83/gal (73,047 gal) <br />Anticipated cost for remainder <br />of current term (73,047 gal) <br />Updated Total Annual <br />Cost for current term <br />$133,676 <br />$170,00 <br />$303,876 <br />FUNDING: <br />Funds for sulfuric acid will be made available in the Water Production Chemicals account in the <br />operating fund. Operating funds are derived from water and sewer sales. <br />Account Number <br />Account Name <br />Available Amount <br />47121936-035230 <br />Utilities Fund/Water Production/Chemicals <br />$170,200 <br />RECOMMENDATION: <br />Staff recommends the Board approve the amendment to the award, allowing for quarterly price <br />modifications, and authorize the Purchasing Manager to approve an August amendment, after <br />review and approval by the County Attorney as to form and legal sufficiency. <br />Attachment <br />Notice of Amendment to Award <br />51 <br />