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HomeMy WebLinkAboutCORRESPONDENCE - PURCHASE ORDER - 9190629Page 1 of 2 MEMORANDUM DATE: 03/18/2019 TO: Darin Atteberry, City Manager ______ THROUGH: Gerry Paul, Purchasing Director ______ Jason Graham, Director Plant Operations ______ FROM: Mark Kempton, P.E., Director of Plant Operations ______ RE: Request for Exemption to the Competitive Purchasing Process with Hach Company for 5 (five) Alkalinity Analyzers for the Water Treatment Facility Executive Summary The purpose of this memo is to request approval of an exemption to the competitive purchasing process for the acquisition of 5 (five) Hach Company online alkalinity analyzers for the Water Treatment Facility. The Water Treatment Facility standardizes the majority of the online water quality analysis instruments around Hach instruments to reduce costs, maintenance time, and to allow for ease of maintenance. Exemption to Competitive Bidding Rationale In accordance with Code Section 8-161(d)(3), City Council approval is not required for exemptions less than $200,000. Code Section 8-161(d)(1)(c). A particular material or service is required to maintain interchangeability or compatibility as a part of an existing integrated system. Background and Justification The Water Treatment Facility (Facility) monitors water quality and water properties at several points throughout the water treatment process. One of the most important properties of water during the process is alkalinity, which has State regulated limits when leaving the Facility and entering the distribution system. Monitoring alkalinity throughout the process is essential for the quality of the City’s drinking water and is accomplished using online alkalinity analyzers. Most of the online analytical instruments at the Water Treatment Facility are manufactured by Hach. The standardization around this local manufacturer from Loveland, CO allows Facility staff to perform periodic maintenance on all equipment, standardize training on all Hach equipment at Hach’s local training facility, as well as receive quick and timely customer support directly from Hach. This results in significant time and cost savings when compared to using instruments from various manufacturers. Based on quotes solicited, the Hach equipment is less expensive than similar models from other manufacturers and is easier and less expensive to maintain. Facility staff receive excellent pricing due to our long term working and equipment testing relationship with Hach. The Facility has previously used analyzers from a different manufacturer which have proven to be more expensive and complicated to install and maintain. Standardization around a single manufacturer has proven to be a best practice at the Facility, resulting in water quality levels that consistently exceed State water quality standards. Financial Services Purchasing Division 215 N. Mason St. 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6775 970.221.6707- fax fcgov.com/purchasing DocuSign Envelope ID: 53E0748D-7F0B-433F-9376-1483CC984A1B Page 2 of 2 Financial Impact The total purchase from Hach is $29,960 less expensive than a comparable quote from a competing analyzer manufacturer offering comparable product specifications. This cost avoidance includes a $23,800 credit for 2 analyzers that the Water Treatment Facility previously purchased from Hach that are no longer supported. This exemption is required by Code Section 8-161 which establishes the minor purchase threshold of $60,000 per year thereby requiring a formal competitive process or exemption. The total purchase amount is $63,369.90. Recommendation Recommend approval of an exemption to the use of the competitive bid or proposal in accordance with City Code Section 8-161(d)(1)(c) and 8-161(d)(2) which authorizes the City Manager to approve exemptions less than $200,000. The Purchasing Agent may use this approval, as authorized by City Code Section 8-161(d)(4), as the basis for negotiating the additional purchase of services from Hach for up to five one-year terms extending through March 2024. DocuSign Envelope ID: 53E0748D-7F0B-433F-9376-1483CC984A1B