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File #: 2021-475    Version: 1 Name:
Type: Resolution Status: Passed
File created: 12/1/2021 In control: Board of Directors Workshop Meeting
On agenda: 12/8/2021 Final action: 12/8/2021
Title: RFB 1123 Proposed Renewal Option #3 Sodium Hypochlorite O&M
Sponsors: Navid Mehram
Indexes: Wastewater Operations
Attachments: 1. Chemical Memo Final.11.3.pdf



RFB 1123

Proposed Renewal Option #3

Sodium Hypochlorite




Agenda of:                     December 8, 2021

Item No:                     2021-475                     

Amount:                     Original Award                                                                                                         $3,134,080.00                                                                                    Renewal Option #1                                                                                                           1,567,040.00

                                          Renewal Option #2                                                                                                           1,567,040.00                                                                                    Proposed Renewal Option #3                                                                 2,688,550.00                     

New Proposed Contract                                                                                    $8,956,710.00


TO:                     The Honorable

                     Board of Directors

Great Lakes Water Authority


FROM:                     Suzanne R. Coffey, P.E.

Interim Chief Executive Officer

Great Lakes Water Authority


DATE:                      December 1, 2021


RE:                                          RFB 1123

                                          Proposed Renewal Option #3

                     Sodium Hypochlorite

                     Vendor:  PVS Nolwood Chemicals Inc.




Upon recommendation of Navid Mehram, Chief Operating Officer - Wastewater Operating Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Interim Chief Executive Officer (ICEO) to enter into RFB 1123, “Sodium Hypochlorite” with PVS Nolwood Chemicals Inc., at an increased cost of $2,688,550.00 for a total cost not to exceed $8,956,710.00 and an increased duration of one (1) year for a total contract duration of five (5) years; and authorizes the ICEO to take such other action as may be necessary to accomplish the intent of this vote. 



During wet weather, the Water Resource Recovery Facility (WRRF), and Combined Sewer Overflow (CSO) treatment facilities use sodium hypochlorite to disinfect before the treated wastewater is discharged to the rivers. In addition, water treatment plants use this chemical occasionally to control zebra mussels at their water intake points. Starting April 2019, National Pollutant Discharge Elimination System (NPDES) permit required WRRF to disinfect all effluent before its discharge, this requirement increased the consumption of sodium hypochlorite. As a result, the funds in the current purchase order will not be sufficient until the end of the renewal term by March 31, 2022. Therefore, we are requesting approval to add $690,000.00 to the current contract to cover increased usage and $1,998,550.00 to extend the contract by one more year to begin on April 1, 2022, and end on March 31, 2023 for a total increase of $2,688,550.00.


Through diligent review and surveying of the market, our Procurement Team’s professional judgment and recommendation to extend the current purchase order by one (1) year will ensure the continuity of sodium hypochlorite supply for our operations. Additionally, in the Procurement Director’s November 3, 2021 memo to the Board (attached) related to chemical contracts, the procurement strategy is to extend all current chemical contracts for a minimum of one (1) year to give adequate time to fully assess the market and allow manufacturers to catch up production with demand. This prudent approach will protect the continuity of GLWA’s supply while allowing assessment of the current market. Procurement will also use this time to identify the possibility of new sources of product. Procurement is implementing a dual sourcing plan for redundancy in chemicals to avoid any interruption in chemical supply going forward.


Original Contract Time                                          Two (2) years  (04/01/2018 - 03/31/2020)


Renewal No.1                                                                       One (1) year    (04/01/2020 - 03/31/2021)


Renewal No. 2                                                               One (1) year    (04/01/2021 - 03/31/2022)


Proposed Renewal No. 3                                          One (1) year    (04/01/2022 - 03/31/2023)


Total Revised Time                                                               Five (5) Years  (04/01/2018 - 03/31/2023)






Original Contract Price                                           $ 3,134,080.00

Renewal Option #1                                                                   1,567,040.00

Renewal Option #2                                                                  1,567,040.00

Proposed Renewal Option #3                        2,688,550.00

New Purchase Order Total                      $ 8,956,710.00




Summary:  The use of sodium hypochlorite is anticipated as an ongoing component of the water and wastewater financial plan. The volume of treatment chemicals may vary by year which could require an amendment to that years’ financial plan. Should this occur a budget amendment may be required, first from other chemical budgets, secondly from other budgeted areas, and finally from the wastewater unallocated reserves. A budget amendment in the current year is anticipated. This is being evaluated on a prospective basis.

As the memo from the Procurement Director to the Board dated November 3, 2021, has noted, pricing for chemicals is currently very volatile. Secondly, the demand and availability of this and other chemicals may create additional demand by the organization for this product which will affect the budget evaluation.

Funding Source: Operations and Maintenance Budget (5960)

Cost Center: Water Works Park (882131)

                                          Springwells Water Treatment Plant (882141)

                                          Northeast Water Treatment Plant (882151)

Wastewater Secondary Processing (892224)

Combined Sewer Overflow Facilities (892271 - 892279)

Expense Type: Operating Supplies - Chemicals (621600)



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

                     FY 2018 Amended Budget (Prorated)                       $307,626.00

                     FY 2019 Amended Budget                                             1,404,003.00

                     FY 2020 Amended Budget                       1,786,403.00

                     FY 2021 Budget                                                                                   1,674,500.00

                     FY 2022 Budget                                                                            1,801,400.00

                     FY 2023 Financial Plan (Prorated)                      1,936,825.00

                                          Financial Plan Forecast                                $8,910,757.00

                     Maximum Contract                                                                            8,956,710.00

                     Variance (positive/(negative))                     ($45,953.00)



This item was presented to the Operations and Resources Committee at its meeting on December 8, 2021. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.


The proposed procurement of this item may be shared, in part, at the Belle Isle CSO which is shared in part by DWSD and GLWA. This item is budgeted by both entities as noted above.