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File #: 2019-403    Version: 1 Name:
Type: Resolution Status: Passed
File created: 11/6/2019 In control: Board of Directors Workshop Meeting
On agenda: 11/13/2019 Final action: 11/13/2019
Title: Contract No. 1903389 Phosphoric Acid CIP# N/A / BCE Score: N/A
Sponsors: Cheryl Porter
Indexes: Water Operations
Attachments: 1. 1903389 Procurement Report, 2. 1903389 Bid Tabulation


Contract No. 1903389

Phosphoric Acid

CIP# N/A / BCE Score: N/A


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.




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. 


“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.


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



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 financial plan in total.  Potential positive variances of other chemicals as well as the use of this chemical may vary by year therefore, sufficient funds will be provided in the Operations & Maintenance (O&M) financial plan for this contract related to operating supplies-chemicals.


Funding Source:  Operations & Maintenance (O&M) Budget  


Cost Center(s): Water Works Park WTP                          Water Operations cost center 882131

                                               Springwells WTP                                               Water Operations cost center 882141

                                               Northeast WTP                                                                    Water Operations cost center 882151

                                               Southwest WTP                                                                    Water Operations cost center 882161

                                               Lake Huron WTP                                               Water Operations cost center 882171


Expense Type: Operating Supplies - Chemicals (621600) 


Estimated Cost by Year and Related Forecasted Variance:  See table below. 


Fiscal Year                                                                                                                                                                         Amount


FY 2020 Budget                                                                                                                $1,267,000

FY 2021 Financial Plan                                                                                             1,267,000

FY 2022 Financial Plan                                                                                             1,267,000 

FY 2023 Financial Plan                                                                                              1,267,000

FY 2024 Financial Plan                                                                                             1,267,000

                     Financial Plan Forecast                                                 $6,335,000                     


Proposed Contract Amount                                                                      $6,444,600

Variance (positive/ (negative))                                                                                 $ (109,600) 



The award of this contract provides a variance of $109,600 ($6,335,000 financial plan forecast less $6,444,600 proposed contract amount).  The actual usage of all chemicals fluctuates with changes in production, treatment volume, consumption, pumping and customer growth.  The result of the fluctuation may be more or less than estimated quantities forecasted with the use of each chemical and current market pricing, thus decreasing the variance.



This item was presented to the Operations and Resources Committee at its meeting on November 13, 2019. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.


This item does not impact the shared services agreement between GLWA and DWSD.