FROM: James D. Herberg, General Manager
Originator: Riaz Moinuddin, Director of Operations & Maintenance
SUBJECT:
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ANIONIC POLYMER SPECIFICATION NO. C-2021-1252BD CONTINGENCY INCREASE
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GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a unit price contingency increase of 5% for a total annual contingency amount of 15% to the Anionic Polymer Specification No. C-2021-1253BD contract with Polydyne, Inc. for the term of November 1, 2022 through October 31, 2023; and
B. Approve a unit price contingency increase of 5% for the remaining three, one-year renewal periods; for a total annual contingency amount of 15%.
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BACKGROUND
Anionic polymer and ferric chloride are added to the primary influent at both Orange County Sanitation District (OC San) Plant Nos. 1 & 2 to enhance organic removal and improve settling of suspended solids during primary treatment. This is defined as chemically enhanced primary treatment (CEPT).
Solids and organics not captured and removed in primary treatment are converted into biological solids in secondary treatment. Secondary treatment is more energy intensive and secondary solids are more difficult to digest, have lower methane production, and higher dewatering and biosolids hauling costs relative to primary solids.
RELEVANT STANDARDS
* Meet volume and water quality needs for the GWRS
* 24/7/365 treatment plant reliability
PROBLEM
The proposed unit cost has increased beyond the approved annual contingency amount. Propylene and acrylonitrile (two key raw materials in anionic polymer) have seen over a 40% average increase in a year-over-year comparison. Freight continues to be a record high, up 34% over the last 12 months, impacting raw materials and shipping costs.
PROPOSED SOLUTION
Staff recommends the Board of Directors approve a contingency increase.
TIMING CONCERNS
The existing agreement expires on October 31, 2022.
RAM...
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