Title
RESOLUTION AWARDING A CONTRACT TO UNIVAR USA INC. FOR THE PURCHASE AND DELIVERY OF 70,000 GALLONS OF LIQUID CAUSTIC SODA IN YEAR 2017 FOR A TOTAL COST OF $133,861.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to issue a purchase order to Univar USA Inc. for the purchase and delivery of an estimated 70,000 gallons of liquid caustic soda in year 2017, in accordance with city-approved specifications and the vendor’s low bid of $1.9123 per gallon, for a total of $133,861, payable from Water Fund 510, Public Works and Utilities 500, Water Treatment and Pumping 1955, Chemicals 5216, Liquid Caustic Soda 05.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the purchase and delivery of 70,000 gallons of liquid caustic soda from Univar USA Inc. (Univar) for a total amount of $133,861, payable from the water fund.
This chemical is used for water purification at the Lakewood water treatment plant, located at 8130 Congdon Boulevard in Duluth. The total of 70,000 gallons is an estimated quantity based on past need.
Univar’s low bid of $1.9123 per gallon is higher than the 2016 low bid of $1.695, however the estimated usage has decreased by approximately 15,000 gallons, resulting in an overall lower cost.
The purchasing division posted a request for bids November 14, 2016 and received four responses by the closing date. Univar submitted the lowest bid. The bid tabulation is attached as Exhibit A.