File#: 12600030 Opening Date: 09/30/25
Department Recommendation
(To be completed by the Department)
Background (Explain the need for the procurement below.) Tapping sleeves and tapping valves are essential components used to connect new water lines to existing mains without interrupting service: These materials are routinely used by the Water Division for new customer connections, system maintenance, emergency repairs, and capital improvement projects �ward a contract as follows:
Award Amount
Fer $694,927.65
The Budget Allocation for this expenditure is $204,379.00 The contract price is 240% above. (If the overage is greater than 10% provide an explanation below.) The old contract annual amount with Core & Main was $204,379 and we spent an average of 55% of this amount annually. The new contract with Ferguson is going up to $694,927.65, which is 240% higher. It's believed that inflation heavily factored into this disparity. The $204,379.00 estimate was based on 2018-2019 pricing and did not properly account for the record inflation experienced since. Stainless steel products have particularly been impacted due to the volatile nature of the steel industry, rising costs in raw materials, supply chain disruptions, and tariff increases. The cumulative inflation experienced since 2019 is estimated around 50%, but could be significantly higher due to the new market conditions of 2025 .. We are estimating, based on the levels spent with Core & Main, to spend about 55% of the annual contract with Ferguson Enterprises. From the annual contract of $694,928, we are estimating to spend about $384,000 annually, which is $180,000 or 88% more than the old contract. We are anticipating this increase by savings from other upend accounts. Also, we will re-budget the new amount in our upcoming FY 2027 Budget.
D Reject all bids/proposals. (If electing to reject all, provide an explanation below.) Anticipated Council Date: 04/09/2026
3 Formal Procurement Evaluation Rev. 09/2025