200 S. Anaheim Blvd.
Suite #620
Anaheim, CA 92805
Tel: (714) 765-5110
Fax: (714) 765-5288
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: JANUARY 10, 2023
FROM: FINANCE DEPARTMENT
SUBJECT: ACCEPTANCE OF BID FOR THE PURCHASE OF LIQUID
OXYGEN (LOX)
ATTACHMENT (Y/N): NO ITEM # 14
RECOMMENDATION:
That the City Council, by Motion, accept the lowest responsive bid from Matheson Tri- Gas, Inc., in the amount of $98,426 plus applicable taxes and a 20% contingency, to provide as-needed liquid oxygen (LOX) for a one-year period with up to four one-year optional renewals; and authorize the Purchasing Agent to exercise the renewal options, all in accordance with Bid # 9640.
DISCUSSION:
Purchasing solicited bids from known suppliers and posted the bid on the City’s bid portal. Sealed bids were received by 2:00 p.m., December 8, 2022, from the following suppliers and were publicly opened immediately thereafter.
Bidders Bid Price
Matheson Tri-Gas, Inc. $98,426
Irving, Texas
Linde, Inc. $115,101
Burr Ridge, Illinois
The bid was based on an estimated annual quantity of liquid oxygen used in the water treatment process at the Lenain Water Treatment Plant. The product is used in the treatment of drinking water as part of the process to meet or exceed Federal and State drinking water standards.
The bid was viewed by eight potential bidders, with two submitting a bid response.
Purchasing staff also reached out to other potential bidders to ask why they did not participate. Those who replied indicated they did not offer the requested product. The recommended vendor has supplied this product to the City in the past and has provided the required product in a timely manner.
Acceptance of Bid for the Purchase of Liquid Oxygen (LOX) January 10, 2023
The initial term of the agreement will be for a one-year base period with up to four one- year optional renewals. Unit pricing is fixed for the initial one-year base period. Pricing for the renewal periods shall be negotiated each year with any increases not-to-exceed the change in the Producer Price Index (PPI) for the preceding 12-month period.
However, if significant fluctuations in costs are experienced throughout the chemical industry which exceed the PPI limit, an equitable price adjustment may be negotiated if it is in the City's best interest. The 20% contingency is recommended to provide the ability to address any unforeseen purchase requirements that may arise during the term of the agreement.
IMPACT ON BUDGET:
Sufficient funds are available in the Anaheim Public Utilities Fiscal Year 2022/23 Water Utility Fund budget. Funding for subsequent years will be subject to the Council’s approval of budget appropriations.
Respectfully submitted, Concurred by,
Barrick L. Bartlett Dukku Lee
Purchasing Agent Public Utilities General Manager