FROM: James D. Herberg, General Manager
Originator: Lan C. Wiborg, Director of Environmental Services
SUBJECT:
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DENALI WATER SOLUTIONS, LLC BIOSOLIDS HAULING SERVICES - SPECIFICATION NO. S-2020-1208BD - CONTINGENCY INCREASE
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION:
Approve an additional 10% unit price per ton contingency (for a total of 20% unit price per ton contingency) for Denali Water Solutions, LLC Biosolids Hauling Services Specification No. S-2020-1208BD contract renewal to collect and haul Orange County Sanitation District's biosolids to the Inland Empire Regional Composting Facility and alternative sites for the period between January 1, 2023 through December 31, 2023.
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BACKGROUND
In early November, Denali Water Solutions, LLC submitted a request for a unit price increase above the originally approved 10% unit price per ton contingency for the Biosolids Hauling Services Specification No. S-2020-1208BD contract renewal to Orange County Sanitation District's (OC San) purchasing division via email communication. OC San staff responded with multiple requests for justification and a reduction in the proposed unit price. As of 11/29/2022, Denali proffered a best and final 20% unit price per ton contingency, which will result in an additional cost of $3.09 per ton of biosolids.
Denali's justification for increasing the unit price per hauling each ton of biosolids from $15.45 to $18.54 includes: increases in labor/driver costs (18.5% since September 2021), increases in vehicle maintenance costs (parts and labor), and fuel costs above the original fuel surcharge.
In combination with the tipping fee at IERCF, the overall cost will change from $76.45 to $79.54 per wet ton of biosolids, plus fuel surcharge.
The Inland Empire Regional Composting Facility (IERCF) is one of two local options utilized by OC San. At this time, Denali is the sole hauler under contract for transporting biosolids from OC San to I...
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