City Council Meeting: September 11, 2012
Agenda Item: 3-G
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Reject Bids for Granular Activated Carbon Replacement Services and Approve Modification to Purchase Order
Staff recommends that the City Council:
1. Authorize the City Manager to reject all bids received on June 28, 2012, for Bid #4013 for granular activated carbon replacement services at the Charnock Well Field in accordance with Santa Monica Municipal Code Section 2.24.071 (d)(4) and (5).
2. Authorize the City Manager to direct staff to reissue a request for new bids in order to obtain the best bidder for this service.
3. Approve a new, interim purchase order in the amount of $400,000 with Carbon Activated Corporation, a California-based company, to provide granular activated carbon replacement services at the Charnock Well Field for a period of six months until a new bid can be awarded by Council. The amount awarded to Carbon Activated for granular activated carbon replacement services was $800,000 for FY 2011-12. This new purchase order will result in a new total amount of $1,200,000 awarded to Carbon Activated Corporation.
The periodic replacement of granular activated carbon (GAC) filtration media is required for the removal of contaminants in the groundwater at the Charnock Well Field. In June 2012 the City solicited bids for GAC replacement services. Of the three bids received, one was non-responsive due to incompleteness, the second was unwilling to meet the City’s contractual liability requirements, and the third bidder’s unit price bid was unacceptably high. Staff recommends rejecting all three bids and reissuing the request for bids in order to obtain the best bidder for this service. In order to maintain the required treatment capability in the interim, staff recommends extending the prior year’s purchase order for a term of six months for an amount not to exceed $400,000.
GAC filtration media is required for the removal of Methyl tert-Butyl Ether (MTBE), tert-Butyl Alcohol (TBA) and other volatile organic chemicals (VOCs) in contaminated groundwater at the City’s Charnock Well Field. This site has 10 GAC vessels that must be replaced three times a year to ensure adequate filtration. The Water Resources Division annually requires its contractor to remove the spent media and provide related services such as carbon sample testing, regeneration of spent filter media at an off-site facility for resale, and replacement with virgin, coconut shell carbon as needed.
On June 28, 2011, Council awarded a one-year purchase order to Carbon Activated Corporation for GAC replacement services, following a competitively bid process. The term of the purchase order has expired and GAC replacement services were once again bid out.
In June 2012 the City published Notices Inviting Bids #4013 to provide granulated activated carbon replacement services in accordance with City specifications. The bid was posted on the City’s on-line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Three bids were received and publicly opened on June 28, 2012, per Attachment A. Bids were evaluated on price, references, experience, and compliance with City specifications. One bid from Prominent Systems was incomplete; it lacked references as required in the bid specifications. Calgon Carbon Corporation (Calgon) was then selected as the best bidder to provide granular activated carbon replacement services at the Charnock Well Field.
In advance of the official award, Calgon requested adjustments to the terms and conditions of the agreement which had been provided to all bidders. In consultation with the City Attorney’s Office and the City’s Risk Management Division, the City’s purchasing staff and Calgon are unable to agree on the liability provisions in the agreement, leaving one responsive bidder, Siemens, at a price significantly higher than the price paid in the initial purchase order. Staff recommends rejecting all bids and soliciting new bids for the GAC replacement services in accordance with Santa Monica Municipal Code Section 2.24.071 (d)(4) and (5).
To maintain water production operations at the Charnock treatment facility during the period GAC replacement service is re-bid, staff recommends extending the prior purchase order with Carbon Activated Corporation for a six-month period, at the same terms and conditions as the original purchase order.
The purchase order modification to be awarded to Carbon Activated Corporation for a six month term is $400,000. Funds are available in the FY2012-13 budget in account 05672.544014.