Placement: Consent Agenda
Action Requested: Motion / Vote
title
Ratify Additional Expenditures for Water & Sewer Products from Core & Main LP, Ferguson Enterprises, LLC & Fortiline, Inc.
body
Submitted By: Jason Bezak, CPPB, NIGP-CPP, Procurement Agent II, Procurement Management Department (PMD).
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Jason Bezak, CPPB, NIGP-CPP, PMD.
2. Parties: City of Port St. Lucie , Core & Main LP, Ferguson Enterprises, LLC & Fortiline, Inc.
3. Purpose: To provide the City with water and sewer products to keep up with the growth of the Utility and to be transparent of actual expenditures.
4. New/Renewal/Modified: New.
5. Duration: January 12th, 2021-January 12th, 2022.
6. Benefits to Port St. Lucie: By allowing the companies to provide manufacturer letters of price increase justification, the City was able to document the market volatility while also keeping up with growth and demand for water and sewer products.
7. Cost to Port St. Lucie (Annual and Potential): $950,000 was the estimated annual expenditure. Due to market volatility and supply chain constraints, the City’s estimated expenditures increased to $1,500,000 to cover the time it will take to award the new sealed bid.
Presentation Information: N/A.
Staff Recommendation: Move that the Council ratify the additional expenditures for Water & Sewer Products from Core & Main LP, Ferguson Enterprises, LLC & Fortiline, Inc.
Alternate Recommendations:
1. Move that the Council amend the recommendation and ratify the additional expenditures.
2. Move that the Council not approve the additional expenditures and provide staff with direction.
Background: The City utilizes multiple suppliers for water and sewer products to maintain the Utility Systems Department’s requirements for exceptional municipal service. The City solicited an E-Bid to achieve competitive economy of scale pricing. Purchased items are stocked at the Prineville Warehouse for use as needed. Items include, but are not limited to, PVC pipe and fittings, brass, ductile iron materials, fire hydrants, meter boxes, water meters, valves, and miscellaneous safety supplies.
Typically, companies keep their pricing relatively firm for the entirety of their unit price contract; however, 2021 saw prices on materials skyrocket. City staff consulted with each company individually about the state of the marketplace and what they were seeing. Each company verified the supply chain shortages mixed with soaring demand compounded the issue with not only getting the material but locking prices in for more than a few days.
Issues/Analysis: City staff was provided manufacturer letters showing proof of increases on a monthly basis. Staff was able to successfully negotiate with each firm to lock in pricing on a monthly basis; however, each of the awarded companies were not able to keep their contracted prices due to the numerous increases. Therefore, Staff has documented each company’s monthly prices and increases and attached them to this agenda item.
Financial Information: Funds are available from Utilities/Inventory Water and Sewer account (#431-0000-141002).
Special Consideration: The Procurement Management Department has solicited a Sealed Bid for these services and the new contract will be prepared for City Council to approve before January 12, 2022.
Location of Project: Due to the Critical Infrastructure Sector of the Homeland Security Act, no location map is provided for Water and Wastewater Facilities.
Attachments:
1.) May 2021 Price Increase Package.
2.) June 2021 Price Increase Package.
3.) July 2021 Price Increase Package.
4.) October 2021 Price Increase Package.
5.) November 2021 Price Increase Package.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: N/A.
Legal Sufficiency Review:
N/A