P24-S29211.A1 – Amend Council Motion 2020-0081, passed on February 19, 2020, to increase the spending authority from $5,688,070.00 to $7,963,298.00 for the purchase of Calcium Hydroxide Slurry chemical awarded to Lhoist North America of Texas, LLC for Houston Public Works.
Specific Explanation:
The Director of Houston Public Works (HPW) and the Chief Procurement Officer recommend that City Council amend Council Motion No. 2020-0081 to increase the spending authority for the purchase of Calcium Hydroxide Slurry chemical awarded to Lhoist North America of Texas, LLC from $5,688,070.00 to $7,963,298.00 for Houston Public Works.
This award was approved on February 19, 2020 by Council Motion No.: 2020-0081 for a 60-month term with two one-year options to renew, in the amount not to exceed $5,688,070.00. Expenditures as of May 25, 2023 totaled $5,388,710.68. HPW has seen a significant increase in the unit cost for Calcium Hydroxide Slurry (Lime). Since the contract was awarded on February 25, 2020, unit costs have increased from $175/TON to $300/TON. This is an increase of about 70%. Lime is used in the water treatment process at both the East Water Purification Plant (EWPP) and Southeast Water Purification Plant (SEWPP) for pH adjustment to maintain alkalinity and enhanced coagulation.
MWBE Participation:
This project was awarded with an 11% M/WBE participation goal. Lhoist North America of Texas, LLC is currently meeting goal credit of 27% as of July 17, 2023.
Fiscal Note:
Funding for this item is included in the FY2024 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.
_____________________________________ ______________________________
Jedediah Greenfield, Chief Procurement Officer Carol Ellinger Haddock, P.E., Director
Finance/Strategic Procurement Division Houston Public Works
Estimated Spending Authority
|
Department
|
FY2024
|
Out Years
|
Total
|
|
Houston Public Works
|
$1,928,520.00
|
$346,708.00
|
$2,275,228.00
|