accepted report

Accept recommendation of the Chief Procurement Officer to award on-call price agreements for the purchase of Sodium Hypochlorite

infrastructure utilities
climate environment
procurement
proclamation

Introduced by: Former Mayor Ted Wheeler
Status: Accepted

Impact statement

Purpose & background

BES currently procures sodium hypochlorite via a price agreement contract 31000640 with JCI Jones Chemical Inc.

Financial impacts

Current contract 31000640 with JCI Jones Chemical Inc. via amendment 11 increased contract amount by $3,749,963.99. The new total not to exceed amount of the contract is $13,675,438.18. This amendment allowed BES to procure sodium hypochlorite for the remainder of contract term which expires 12/1/2024. The amendment amount encompassed a 9.4% unit price increase based off most recent unit price increase notice plus an additional 41% increase based off 31% average increase over past 3 years and 10% for unknown contingency costs. The anticipated cost for this project would be funded by the Sewer System Operating Fund.

Community impacts

Sodium hypochlorite is critical for treatment plant processes such as chlorination where we disinfection plant effluent by dosing it with a 12 percent sodium hypochlorite solution to inactivate microbial pathogens (bacteria) to levels at or below the requirements in the National Pollutant Discharge Elimination System (NPDES) permit. The chemical is also utilized in our odor treatment system that captures and treats odors related to the wastewater stream to ensure a safe working environment and so odors are not perceptible beyond the fence line.

▸ Full text (the legislation as adopted)

May 29, 2024 TO THE COUNCIL: BES requires the delivery of bulk sodium hypochlorite for use in its treatment plant chlorination systems, as well as the headworks and primary odor treatment systems with the purpose of disinfecting the treated wastewater stream to reduce pathogens prior to the effluent being discharged into the receiving water. To ensure redundancy and uninterrupted supply of product, BES must establish new price agreements before the current contract expires on December 1, 2024. On January 31, 2024, Council passed Ordinance Number 191614 authorizing the Chief Procurement Officer to facilitate a competitive solicitation process to obtain responsible and responsive offers for the delivery of bulk sodium hypochlorite in accordance with Portland City Code 5.33. Section B. of the Ordinance grants the CPO the authority to negotiate and execute multiple price agreements for a maximum not-to-exceed amount of $12,500,000. On March 20, 2024, The Chief Procurement Officer advertised Invitation to Bid (ITB) # 00002297 on behalf of the Bureau of Environmental Services. On April 4, 2024, two bids were received and deemed responsive to the requirements of the solicitation. The City issued a Notice of Intent to Negotiate and Award Price Agreements to HASA, Inc. in the amount of $7,163,450.00; and JCI Jones Chemicals, LLC. in the amount of $5,336,550.00., for a total not-to-exceed amount of $12,500,000. Both Suppliers have current City of Portland Business Tax Registrations and are in full compliance with all City contracting requirements. Neither supplier is COBID certified. The Chief Procurement Officer recommends that Council accepts this Report to negotiate and execute agreements with the two (2) responsive Suppliers. Recommended by: Kathleen Brenes-Morua Interim Chief Procurement Officer

Tally

5 yea 0 nay