Item 82/2024
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: William E. Murray
Dept:
City Manager Dept: Public Works
Date: 4/23/2024
Subject: Authorization of the issuance of a purchase order for Bid No. S-1323 to Ferguson Waterworks for the purchase of various water pipeline materials. (Cost: $200,000) (Action Item)
OBJECTIVE
For the City Council to authorize the Finance Director to issue a purchase order under Bid No. S-1323 to Ferguson Waterworks for the purchase of various water pipeline materials on an as-needed basis for the repair and maintenance of the City’s water system.
BACKGROUND
The Water Services Division has an extensive water delivery system that requires routine maintenance and repairs. Supply chain issues, raw material shortages, labor shortages and transportation challenges has resulted in a greater need for staff to maintain an inventory on hand to respond to emergencies and sustain the City’s water system.
DISCUSSION
On February 29, 2024, Bid No. S-1323 was advertised and posted on the Planet Bids on-line bidding system. Three (3) bids were received and opened on April 1, 2024. The bid results are as follows:
Ferguson Waterworks $38,903.67
United Water Works Inc. $39,879.55
Core & Main LLC $44,225.87
The bid process involved bidding out 185 most commonly used parts and were compared on the total sum of unit prices for parts. Staff has examined the bids received and determined the lowest responsive bidder was Ferguson Waterworks. Staff recommends issuing a blanket purchase order in the amount of $200,000 per fiscal year with an annual renewal option for up to five years to Ferguson Waterworks. This will allow the Public Works Water Services Division to purchase necessary parts on an as-needed basis from Ferguson without going to bid with each purchase, which improves efficiency and prevents interruptions to the day-to-day operations of the department services.
Item 82/2024
FINANCIAL IMPACT
Annual purchases of parts and materials for water pipeline repairs and maintenance will not exceed $200,000. The cost for these purchases are included in the City’s adopted FY 2023- 25 water enterprise operating budget. There is no impact to the General Fund.
RECOMMENDATION
It is recommended that the City Council:
• Authorize the Finance Director to issue a blanket purchase order in the amount of $200,000 per fiscal year with an annual renewal option for up to five years, to Ferguson Waterworks for the purchase of various water pipeline materials on an as-needed basis for the repair and maintenance of the City’s water system.
By: Samuel Kim, P.E, Deputy Public Works Director/Water Services Manager
ATTACHMENT:
Bids and Summary