FROM: James D. Herberg, General Manager
Originator: Riaz Moinuddin, Director of Operations & Maintenance
SUBJECT:
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SODIUM HYDROXIDE (CAUSTIC SODA) 50%, SPECIFICATION NO. C-2018-915BD - CONTINGENCY INCREASE
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
Approve a unit price contingency increase of $44.40 per dry ton (an additional 6% of the base cost) to the Liquid Caustic Soda (50%) contract with Brenntag Pacific for the term July 1, 2022 through June 30, 2023, for a new total contingency amount not to exceed $112.80 per dry ton (16%) with a total estimated usage of $481,153.
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BACKGROUND
The Orange County Sanitation District (OC San) uses chemical treatment in its sewage collection system to reduce the odor and corrosion potential of the vapor space in its system. One of these treatments involve slug dosing caustic soda to temporarily kill the biological "slime layer" that naturally forms on pipes and structures. This biological "slime layer" generates sulfides in the wastewater which, in turn, forms hydrogen sulfide.
In May 2018, OC San awarded an agreement to Brenntag Pacific Inc. for Specification No. C-2018-915BD to supply, delivery, and dosing services of caustic soda 50% (NaOH solution). The agreement directly delivers and injects caustic soda into sewer manholes at strategic locations.
RELEVANT STANDARDS
* 12 or fewer odor complaints per year under normal operating conditions in the collections system
* Zero odor incidents/events under normal operating conditions for Plant Nos. 1 and 2
* Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting
PROBLEM
When staff initiated the agreement renewal process with the caustic soda supplier, the supplier notified staff of an increase in the unit price of caustic soda, which exceeds the Board authorized contingency.
PROPOSED SOLUTION
Staff recommends the approv...
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