582-2022

Report

Authorize five-year Price Agreement for National Sanitation Foundation 60 Certified Sodium Carbonate not to exceed $8,500,000 (Procurement Report - Project No. 127962)

Accepted
June 29, 2022

TO THE COUNCIL:

The Portland Water Bureau’s Improved Corrosion Control Treatment Project will adjust the chemistry of Portland’s water to reduce potential levels of lead at the tap by making Portland’s water less corrosive to sources of lead found in some home and building plumbing.

The chemical used to remove lead from Portland’s drinking water is sodium carbonate. Bulk purchases of this chemical will ensure continuity of operations for Portland Water Bureau in treating public drinking water.

The estimated cost for these goods over a period of five (5) years is approximately $8,500,000.   However, there is no guarantee that all of the estimated funds will be expended.  Expenditures will be based entirely on project needs as identified in the Portland Water Bureau annual budgeting process.

On December 1, 2021, City Council passed Ordinance No. 190617 authorizing a competitive solicitation for the purchase of NSF 60 Certified Sodium Carbonate for an estimated amount of $8,500,000.

On March 30, 2022, the Chief Procurement Officer advertised ITB No. 00001849. One (1) bid was received and opened on April 19, 2022. The bid was deemed responsive to the requirements of the solicitation and was accepted by the Portland Water Bureau on May 10, 2022. The City issued a Notice of Intent to Negotiate and Award a price agreement to Thatcher Company of Montana, Inc., on June 1, 2022, and no protests were received. The company is not COBID certified.

Awarding a price agreement to this company will allow the City to continue to treat public drinking water for removal of lead and continue to provide excellent service to customers and the public. It is requested that City Council authorize the Chief Procurement Officer to execute a price agreement with Thatcher Company of Montana, Inc., for a not-to-exceed amount of $8,500,000 over a period of 5 years.

Recommended by:

Biko Taylor

Chief Procurement Officer

Impact Statement

Purpose of Proposed Legislation and Background Information

The purpose of this legislation is to authorize a price agreement for the purpose of purchasing NSF 60 certified sodium carbonate for the Portland Water Bureau. This price agreements will provide NSF 60 certified sodium carbonate for treatment of Portland’s water supply.

The Improved Corrosion Control Treatment Project will further the chemistry of Portland’s water to reduce potential levels of lead at the tap by making the water less corrosive to sources of lead found in some home and building plumbing. The corrosion control treatment will use two naturally occurring substances, sodium carbonate and carbon dioxide, to increase the pH and alkalinity of the water. 

The Project is required to comply with the Federal Lead and Copper Rule, in accordance with an existing compliance agreement with the Oregon Health Authority (OHA). The new facilities are being constructed at the Portland Water Bureau’s Lusted Hill facility. This council action is to authorize a price agreement to procure sodium carbonate, for a period of five years.

Any product added to public water systems for drinking water treatment must meet the requirements for NSF/ANSI Standard 60 Drinking Water Treatment Chemicals – Health Effects. This is in compliance with Oregon Administrative Rule 333.061.0087(6), which addresses the requirements for products added to public water systems for drinking water treatment.

The proposed legislation does not change any specific City policies.

Financial and Budgetary Impacts

City Council passed Ordinance No. 190617 on December 1, 2021, authorizing the Chief Procurement Officer to issue a competitive solicitation for the purchase of NSF 60 certified sodium carbonate for an estimated amount of $8,500,000.

It is requested that Council authorize a price agreement with Thatcher Company of Montana, Inc., for a not-to-exceed amount of $8,500,000 for a period of five (5) years.

Based on historical volume of are water use, Bureau confidence in the not-to-exceed amount of the Price Agreement is “High”.

Costs for goods provided under the Price Agreement will be paid against approved Portland Water Bureau operating budgets.

No positions will be created, eliminated or re-classified as a result of this legislation. No revenue will be impacted by this legislation. 

Community Impacts and Community Involvement

On December 1, 2021, City Council passed Ordinance No. 190617 authorizing a competitive solicitation for the purchase of NSF 60 certified sodium carbonate. The goods and services contracting community, including contractors certified with the State of Oregon as disadvantaged, minority owned, woman owned, and emerging small businesses became involved when the solicitation was publicly advertised on the City’s online procurement system on March 30, 2021. Potential bidders were able to review the competitive solicitation, ask questions, provide comments and submit bids.

On April 19, 2022, one (1) proposal was received, and it was deemed responsive to the solicitation requirements. The City issued a Notice of Intent to Negotiate and Award a price agreement on June 1, 2022. No protests were received.

No known persons or groups will be testifying.

No future public involvement is anticipated or necessary for this request.

100% Renewable Goal

Electronic systems utilized for performing services under this Price Agreement are 100% powered by renewable energy sources.

This action does not increase or decrease the City’s current total energy use.

Agenda Items

582 Consent Agenda in June 29-30, 2022 Council Agenda

Accepted - Prepare Contract

  • Commissioner Dan Ryan Yea
  • Former Commissioner Jo Ann Hardesty Absent
  • Commissioner Mingus Mapps Yea
  • Commissioner Carmen Rubio Yea
  • Mayor Ted Wheeler Yea

Introduced by

Requested Agenda Type

Consent

Date and Time Information

Requested Council Date