Title
Contract No. 1903389
Phosphoric Acid
CIP# N/A / BCE Score: N/A
Body
Agenda of: November 13, 2019
Item No.: 2019-403
Amount: $6,444,600.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: November 7, 2019
RE: Contract No. 1903389
Phosphoric Acid
Vendor: PVS Nolwood Chemicals, Inc.
MOTION
Upon recommendation of Cheryl Porter, Chief Operating Officer - Water Operations and Field Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 1903389 "Phosphoric Acid" with PVS Nolwood Chemicals, Inc., at a cost not to exceed 3,866,760.00 for a duration of three (3) years, plus two (2) one (1) year renewal options at a cost of $1,288,920.00 each year, for a total contract value of $6,444,600.00; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
"Phosphoric Acid, Technical Grade, 75% Concentration" needs to be provided to GLWA's five water treatment plants (WTP) for compliance with the EPA Lead and Copper Rule that requires corrosion control treatment. Corrosion control treatment minimizes the dissolution of lead and/or copper during water delivery to consumers. Corrosion control treatment has been used for over 15 years.
JUSTIFICATION
Contract No. 1903389 will provide Phosphoric Acid to GLWA's five WTPs for compliance with the EPA Lead and Copper Rule.
GLWA water treatment plants:
* Lake Huron WTP
* Northeast WTP
* Southwest WTP
* Springwells WTP
* Water Works Park WTP
FINANCIAL PLAN IMPACT
Summary: The proposed contract with PVS Nolwood Chemicals, Inc. encompasses Operations & Maintenance expense only. The FY 2020 budget and five-year financial plan was based on prior usage of all chemicals over the contract periods. The value of the contract exceeds the current financia...
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