Approve New Contracts to Purchase Ductile Iron Pipe Fittings

M E M O R A N D U MEUGENE WATER & ELECTRIC BOARDWATER DIVISIONTO: Commissioners Brown, Simpson, Cassidy, Ernst and CunninghamFROM: Tom Buckhouse, Director, Electric Water & Steam DivisionsDATE: July 8, 2011SUBJECT: Approve New Contracts to Purchase Ductile Iron Pipe FittingsIssueThe existing 5-year contract for Ductile Iron Pipe Fittings has expired and needed to be rebid.BackgroundEWEB purchases approximately $200,000 per year of ductile iron pipe fittings for the construction ofunderground water utilities. The price of ductile iron pipe fittings has escalated in recent years and thereforeit is prudent to renegotiate pricing.DiscussionOn June 21, 2011, EWEB received bids for ITB 004-2011, Ductile Iron Pipe Fittings. Because not all biddersare able to bid on all of the different type of fittings, the bid items were broken down into five separate lots.For each lot, the low bidder for that type of fitting was determined. Bids were received from FergusonEnterprises, HD Fowler, United Pipe, and Consolidated Supply. Low bid amounts for the five different lotswere as follows for the first year:Lot A, Fittings Ferguson Enterprises $94,465.94Lot B, Adapter Packs HD Fowler 2,982.75Lot C, Gland Restraints Consolidated Supply 38,576.87Lot D, Flange Pack Kits Ferguson Enterprises 5,460.84Lot E, Gasket Restraints Ferguson Enterprises 37,015.81RecommendationManagement recommends that a contract be awarded to the low bidder of each of the five lots describedabove. Each bidder met all of the bid requirements for the respective lot for which they are the low bidder.Requested Board ActionManagement requests Board approve contracts with the low bidders for each of the 5 lots described above forthe purchase of the ductile iron pipe fittings. Funds for these purchases were budgeted for 2011 and will bebudgeted for each of the five years of these contracts.1

EWEB BOARD AGENDA ITEM ACTION REQUESTFor Contract Awards, Renewals, and Increases generally over $1 millionThe Board is being asked to approve three requirements contracts for the purchase of Ductile IronFittings with the following companies: Consolidated Supply, Ferguson Enterprises, and HD Fowler.Backgrounder (“See backgrounder information”) YesBoard Meeting Date: July 19, 2011Project Name/Contract#:Ductile Iron FittingsProject Contact: Tom Buckhouse Ext. 7166Purchasing Contact: Cindy McLaren Ext. 7163Contract Amount:Original Contract Amount:Additional $ Previously Approved: $ n/aInvoices over last approval: $ n/aPercentage over last approval: n/a %Amount this Request: $1,250,000Resulting Cumulative Total:Contracting Method:Method of Solicitation:If applicable, basis for exemption:$1,250,000 over 5 years for 3 contracts$1,250,000 over 5 years for 3 contractsFormal Bid (ITB)Term of Agreement: July 21, 2011 – July 20, 2012Option to Renew?Yes, annually for up to 5 yearsApproval for purchases “as needed” for the life of the contractNarrative:The Board is being asked to approve three new requirements contracts for Ductile Iron Fittings toFerguson Enterprises, HD Fowler and Consolidated Supply.In May 2011, staff issued a formal ITB for the purchase of Ductile Iron Fittings to replenish stock, on anas-needed basis. The solicitation was issued for 5 lots with each lot to be awarded to the lowestresponsible, responsive bidder, which resulted in multiple awards. Four bids were received, and ifapproved, staff will award contracts to Ferguson Enterprises, HD Fowler, and Consolidated Supply.Historical procurement data suggests that the total contract amount will be approximately $900,000 overthe total five-year period. The actual total dollar amount; however, is unknown and may be more or lessthan estimated. Purchases will be based on need and not on any specific annual quantity. The annualcost will be within the amount budgeted for that specific year.If approved, staff will purchase Ductile Iron Fittings from these suppliers as needed over the life of thecontract, potentially five years. This contract is for one-year with the option, at EWEB’s discretion, torenew for four additional one-year periods.ACTION REQUESTED:Staff requests Board approve three new requirements contracts with Ferguson Enterprises, HDFowler, and Consolidated Supply for the periodic purchase of Ductile Iron Fittings (as needed toreplenish stock). Funds for these purchases were budgeted for 2011 and will be budgeted annually.Revised 8-26-2010 Page 1YesAction Requested:XContract AwardContract RenewalContract IncreaseOtherFunding Source:XBudgetReservesNew RevenueBondingOtherForm of Contract:XSingle PurchaseServicesPersonal ServicesConstructionIGAPrice AgreementOther