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Item 4E - Award of Bid 1516-06 - Chlorine SupplyCITY COMMISSION MEETING STAFF REPORT AG ENDA ITE M # 4E JANUARY II, 2016 AGENDA ITEM: Bid No. 1516-06, Chlorine Supply SUBMITTED BY: Douglas E. Layton , PE Public Works Director DATE: 12/21/15 BACKGROUND: The City's request for bids for Chlorine Supply was advertised in the Florida Times Union and on the City's website . A written announcement was sent to 10 potential bidders . 1 bid was received on 12/16/15 from Allied Universal Corporation in the estimated annual amount of $29,400. Chlorine is used in the treatment of drinking water and wastewater to kill bacteria . The contract is for a 5 year period with the bids evaluated for an estimated 1 year usage. The Contractor must hold his prices for the entire 5 year duration but is allowed to opt out of the agreement at the end of year 3 or 4. The City may cancel the purchase order at any time . BUDGET: The FY15/16 budget includes adequate funds for Chlorine supply. RECOMMENDATION: Approve the award of a purchase order for ch lorine supp ly to Allied Universal Corporation under the terms of their bid 1516-06. ATTACHED: Bid Documents Contractor Bid Bid Tabulation REVIEWED BY: :?f t/ a..a Ghaa f , Nelson Van [1ere , City Manager AGENDA ITEM# 4E JANUARY 11, 2016 CITY OF ATLANTIC BEACH 1200 SANDPIPER LANE BID NUMBER 1516-06 ATLANTIC BEACH, FLORIDA 32233 (904) 247-5834 1.0 REQUEST FOR BID ANNUAL CONTRACT-Chlorine for Water /Wastewater Treatment Plants 1.1 Resulting Contract It is the intention of the City of Atlantic Beach to retain one contractor to supply chlorine. Any agreement or contract resulting from acceptance of a bid shall be on forms either supplied by or approved by the City and shall contain, as a minimum, applicable provision of the request for bid. The City reserves the right to reject any agreement which does not conform to the Request for Bid and any City requirements for agreements and contracts. 1.2 Renegotiation During the contract period, the City reserves the right to restate and/ or renegotiate with the Contractor such additions, deletions, or changes to the contract as may be necessitated by law or changed circumstances. In the event that the City and the Contractor cannot come to a mutual agreement and negotiation on any such addition, deletion or change, that portion of the contract concerning the services in the addition, deletion, or change shall be terminated. 1.3 Contractor Contract Performance During the contract period, the Public Works Director or his designee shall assess the Contractor's performance on the contract and reserves the right to inspect the Contractor's materials and methods during any specific project. In the event of a breach of the contract by the Contractor or unsatisfactory performance as assessed by the Public Works Director, or if the Contractor performs in a manner that precludes the City from administering its functions in an effective and efficient manner, and if, after (30) days following written notice to the Contractor, the City shall be authorized to cancel the contract, thereafter reserving the right to proceed against the Contractor for any and all damages permitted by law arising from said breach. The Contractor shall not be held responsible for any failure determined to the satisfaction of the Public Works Director to be due to any action or inaction on the part of the City. 1.4 Tax Identification Number Bidder must note their Federal Employer l.D. Number on bid summary form. The City's Federal Employer l.D. Number is 59-60000267. 1.5 Intent and Duration It is the intent of the City to select one contractor to provide chlorine needed for the City's Water/Wastewater Treatment Plants. The objectives are to obtain the best services while minimizing cost to the City. 1 1.6 AGENDA ITEM# 4E JANUARY 11, 2016 The period of the contract for chlorine shall commence on the contract date and shall terminate five (5) years after the date of commencement. The Contractor may cancel the contract at the end of the 3rd or 4th anniversary year, without cause, upon six (6) months prior written notification to the City. Prices, terms and conditions shall remain firm through this contract period unless modified or canceled in accordance with the provisions of the bid. Schedule for Selection December 16, 2015 January 25, 2016 January 26, 2016 -Receive Bids Prior to 2:45 P.M. -Anticipated Commission Approval -Anticipated Implementation Date of Contract 1.7 Bid Forms Bids are to be submitted on the attached Bid Summary Form or copies thereof. Bids will not be considered unless they are submitted on this form. It shall be assumed that services which are offered, meet or exceed the requirements as stated in the accompanying specifications. This Bid Invitation presents the City's requirements under the proposed methods of operation. Responses to this request should address these requirements. 1.8 The City's Right to Use Other Contractors The City reserves the right to provide for additional services from other contractors, if the City so deems necessary. If the City elects to exercise this right, the contract covered by the bid shall remain in effect as regards to terms, agreements and conditions without penalty or diminution of ongoing services as contained therein and previously provided by the successful Contractor in this bid. 1.9 Use of Bid by Other Agencies It is hereby made a part of this Invitation to Bid that the submission of any bid response to this advertisement request constitutes a bid made under the same terms and conditions, for the same contract price, to other government agencies if agreeable by the bidder and the government agency. At the option of the vendor I contractor, the use of the contract resulting from this solicitation may be extended to other governmental agencies, including the State of Florida, its agencies, political subdivisions, counties and cities. Each governmental agency allowed by the vendor ;contractor to use this contract shall do so independent of any other governmental entity. Each agency shall be responsible for its own purchases and shall be liable only for goods or services ordered, received and accepted. No agency receives any liability by virtue of this bid and subsequent contract award. 2.0 SAFETY AND SECURITY REQUIREMENTS 2.1 Compliance with safety and security requirements shall be a primary criterion in the selection of the contractor. 2 AGENDA ITEM # 4E JANUARY 11, 2016 2.2 All applicable requirements of the following federal regulations shall be met by the Contractor. DOT, Department of Transportation chemical shipment, 49 CFR 171 to 179 OSHA, Occupational Safety and Health Administration, Process Safety Management 29 CFR 1910.119 OSHA, Occupational Safety and Health Administration, Hazard Communication 29 CFR 1200. EPA, Environmental Protection Agency, Risk Management Program 40 CFR 68 2.3 Contractor shall provide City with documentation showing Contractor's security program and procedures to include methods of personnel selection, storage, transportation of chemicals, facility security and quality control. 2.4 Contractor shall provide assurance that background checks are performed on personnel. 2.5 Drivers shall have company photo identification and shall present l.D. to plant personnel prior to chemical delivery. 3.0 GENERAL REQUIREMENTS 3.1 The City intends to apply very strict requirements for timely delivery, high quality product, accurate invoicing and more specific requirements as will be necessary. 3.2 Bidder shall furnish cylinders and containers on loan basis without charge. 3.3 ANTI-COLLUSION REQUIREMENT: Under no circumstances shall any prospective proposer, or any person or persons acting for or on behalf of any said prospective bidder, seek to influence or gain the support of any member of the City Commission or the City Staff favorable to the interest of any prospective bidder or seek to influence or gain the support of any member of the City Commission or City Staff against the interest of any prospective bidder. Any such activities shall result in the exclusion of the prospective proposer from consideration by the City. SPECIFIC REQUIREMENTS 4.0 PRODUCT QUALITY 4.1 The Chlorine shall be Industrial Grade Chemical, minimum ninety-nine percent (99%) purity. 4.2 The Chlorine shall be Industrial Grade Chemical, minimum ninety-nine percent (99%) purity. 4.3 A Certificate of Analysis for the product shall be provided with each shipment of chlorine. 4.4 All processing of both containers and chemicals shall meet Chlorine Institute specifications for quality and safety. 4.5 All processing of both containers and chemicals shall meet Chlorine Institute specifications for quality and safety. 3 AGENDA ITEM #4E JANUARY 11, 2016 4.6 Any cylinders or containers discovered to be defective shall be immediately removed from City premises by the Vendor, and a credit issued to the City. 4.7 A Material Safety Data sheet shall be provided for each chemical purchased from contractor. 5.0 DELIVERY 5.1 Individual acceptance orders will be issued from time to time as supplies are needed during the period of this contract. 5.2 All deliveries shall be made to the specified location within twenty-four (24) hours after receipt of individual orders. 5.3 All deliveries shall be made on weekdays, Monday thru Friday only, between the hours of 7:30a.m. and 3:30p.m. Provide minimum 24-hours notice to Troy Stephens (904-588- 4503) prior to arrival at location specified. 5.4 Delivery locations include wastewater treatment facilities as follows: Wastewater Plant No. 1: Water Plant No.1: Water Plant No. 2: Water Plant No.3: Water Plant No.4: 1100 Sandpiper Lane, Atlantic Beach, FL 32233 469 11th Street, Atlantic Beach, FL 32233 2301 Mayport Road, Atlantic Beach, FL 32233 902 Assisi Lane, Jacksonville, FL 32233 2848 Mayport Road, Jacksonville, FL 32233 5.5 The requested number of full containers of chlorine shall be delivered, and all empty containers of chlorine shall be removed at time of delivery. Under no circumstances shall additional containers of chlorine or other chemicals not requested by the City be left at any of the facilities. 5.6 Delivery vehicles shall be sized, equipped, maintained, inspected and marked to meet all local, state and federal regulations for land transportation of chlorine. 5. 7 Delivery vehicles shall be equipped at a minimum with a hydraulic liftgate, with minimum 3 ton capacity, complete with hydraulic outriggers. Vehicle shall be equipped with lift boom arm with outriggers. 5.8 Delivery vehicle shall be of proper size to allow safe entry, exit, loading and unloading at each specific site. Site visits are recommended. Contact Troy Stephens (904-247-588- 4503) to coordinate. 5.9 All shipping and handling of chlorine to be in conformance with specifications in the most recent versions of The Safe Motor Vehicular Transport of Chlorine Cylinder and Ton Containers, Pamphlet 76, and Chlorine Basics, Pamphlet 1, as published by The Chlorine Institute, Inc. 6.0 DRIVER QUALIFICATIONS 6.1 Vendor must provide a list of Drivers holding current, valid, required Commercial Driver Licenses. 4 AGENDA ITEM# 4E JANUARY 11, 2016 6.2 Drivers shall be certified through the Florida Department of Transportation (FDOT) in the shipping and handling of chlorine. Vendor shall provide documentation of driver certification. 6.3 Drivers shall be trained in Process Safety Management (OSHA 29 CFR 1910.119C) and Risk Management Program (EPA 40 CFR 68.87) regarding the shipping and handling of chlorine. Vendor must provide documentation of driver training in Process Safety Management/ Risk Management Program. 6.4 Drivers shall be trained in the use of respiratory protection, and shall have respiratory protection equipment available in the vehicle during delivery. Vendor shall provide documentation of driver training in respiratory protection. 6.5 On the initial delivery to each plant site, and every year thereafter, each driver shall be trained by City personnel in Site Specific Emergency Policies and Procedures. 6.6 Drivers shall present company photo identification prior to premises entry. 7.0 ESTIMATED QUANTITIES AND BID AWARD The City reserves the right to increase or decrease the following estimated quantities by as much as needed, to meet the actual needs of the City for the duration of the contract. The bid will be awarded based on the lowest total annual cost for all items, using the bidder's unit price times the estimate annual quantities. DESCRIPTION Chlorine, Liquid in 1-Ton Container Chlorine, Liquid in 150 Pound Cylinders 5 ESTIMATED QUANTITY 50 Tons 25 Cylinders REQUEST FOR BID ANNUAL CONTRACT- AGENDA ITEM #4E JANUARY 11, 2016 BID NUMBER 1516-06 Chlorine for Water /Wastewater Treatment Plants BID SUMMARY FORM Unit Price Estimated Total Item Quantity Annual Cost Chlorine, Liquid in 1-Ton Containers $ 50 $ Chlorine, Liquid in 150 Pound Cylinders $ 25 $ Total Annual Cost for All Items: BIDDER'S INFORMATION: By: ________________________ __ BIDDER Name, Title BIDDER ADDRESS SIGNATURE CITY, STATE AND ZIP CODE TITLE BUSINESS TELEPHONE BUSINESS FAX DATE EMAIL 6 List of Vendors Notified of Bid Opening Bid 1516-06 Annual Conh·act for Chlorine (1 Ton and 150 #Cylinders) Company Name: Method of Notification: Contact Information: ADAPCO, Inc. Fax Allied Universal Corporation E-Mail Beckart Environmental Voice Mail Brenntag Mid-South Fax Colonial Chemical Solutions, Inc. Fax Continental Chemical USA Fax Global Treat E-mail Gulbrandsen Technologies E-Mail Jones Chemical Fax Univar USA Fax 1-866-330-9888 Catherine Ouillannod & Dave Adams (262) 656-7680 ext. 115 407-851-3512 912-443-6545 (communication failed w/3 tries) 954-332-2296 info@globa ltreat.com (phone: 1-866-8 15-1442) orders@gu lb randsen.com (pe r Receptionist) 355-0877 693-9844 Dave Adams of Allied Universal attended the bid opening on Wednesday, Dec. 16, 2015. When he found out that Allied was the only bidder, he stated that a steel mill that supplies the 1 ton cylinders closed. Many compa nies , including themselves, have had to turn away business, due to sudden lack of storage containers, and chlorine suppliers have raised their cost. City of Atlantic Beach Annual Contract: Chlorine For Water & Wastewater Treatment Plants December 16, 2015 BID 1516-06 Allied Universal Corporation Required Documents Submission in Triplicate -All Documents X Document Requirements Checklist X Bid Form X Insurance Certificate X Drug Free Workplace X Public Entity Crimes Statement X New Vendor Information Form X W-9 Form X References -Three (3) X Business Tax Receipt X List of Drivers w/Commercial Drivers License X Certification of Drivers Training for Process Safety Mgmt, FOOT shipping & handling of X chlorine, & respiratory protection Documentation of Security Program X Documentation of Adenda N/A Item Estimated Total Annual Cost Quantity Chlorine, Liquid in 1-Ton Containers $549.00 50 $27,450.00 Chlorine, Liquid in 150 Pound Cylinders $78.00 25 $1,950.00 Total Annual Cost For All Items Award of Bid b ~sed on Dep rtment Analysi $29,400.00 and Commission Approval '"''''"""'''' 'W"W•'IW'''~''''"''V'V87""W'<<''' '