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Consider rejecting all bids received for CL19-034 (2021) Sulfuric Acid and authorize staff to re-advertise once market conditions stabilize due to bid exceeding available funding for current fiscal year.
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INITIATOR: Rusty Whisenhunt, Director of Public Utilities
STAFF INFORMATION SOURCE: Rusty Whisenhunt, Director of Public Utilities
BACKGROUND: The City of Lawton solicited bids for CL19-034 (2021) Sulfuric Acid on BidSync. One responsive bid was received and opened August 24, 2021. After reviewing the bid, it is the department recommendation that all bids be rejected due to lack of funding as the only responsive bid would result in a 190% increase over current contract pricing and budgeted funding. It is recommended to authorize staff to rebid the contract once market conditions stabilize. The spot bidding process will be used to make purchases as outlined in the Purchasing Policy until a new contract may be awarded.
EXHIBIT: Department Recommendation, Abstract of Bids, Price Sheets
KEY ISSUES: Does the City of Lawton wish to reject all bids received for CL19-034 (2021) Sulfuric Acid and authorize staff to rebid once market conditions stabilize due to bid exceeding available funding?
FUNDING SOURCE: Medicine Park and Southeast Water Treatment Plants Chemical Accounts (7006509-51015 and 7006510-51015) in the estimated amount of $205,000 annually.
STAFF RECOMMENDED COUNCIL ACTION: Reject all bids received for CL19-034 (2021) Sulfuric Acid and authorize staff to re-advertise once market conditions stabilize due to bid exceeding available funding for current fiscal year