Addendum #2

Supplier Name

November 23, 2021

BL131-21

PURCHASE OF PHOSPHATE CORROSION INHIBITOR AND

LIQUID MAGNESIUM HYDROXIDE ON AN ANNUAL CONTRACT

ADDENDUM #2

This Addendum is made part of the Bid Documents of the above noted solicitation. Please make the following revisions to the above listed solicitation.

BID DUE DATE

Change from November 30 to December 3. Time and location have not changed.

Questions and Answers Q1. Item #2, page 14, specification 1.3

Is it necessary that these affidavits concerning adequate supply of material from multiple sources are notarized?

A1. They do not have to be notarized.

Q2. Can we please get the previous bid tab results and current pricing for the products listed on the bid above?

A2.

Q3. If a decrease or increase % is offered, how is this calculated? Is the % increase added to the % mark up? to the total ((B X C) X A)? to the Unit Price B?

Or is the % mark up the increase over the price per gal being invoiced?

A3. Indicate if the percentage will increase or decrease and provide a range for the mark-up percentage.

Q4. Pg 2 H. Successful supplier for phosphate corrosion inhibitor must submit invoices showing their cost and the percentage markup with the signed receipt tickets showing the accurate weight received.

Our contracts with our raw material suppliers are confidential and will not allow us to reveal this information. Our phosphate product is a proprietary blend of multiple raw materials and cost inputs include many factors and can vary on a daily basis.

Addendum #2

Therefore, we would not be able to include costs with each shipment. This would also create different invoiced amounts on a per lb or per gal basis each time we invoice. Based on your clarification in addendum #1, we would invoice at $3.03/gal (2.75 x 1.10 = $3.03/gal).

This price would be constant for the first year and would not change based on variable costs.

Page 9 – 5.7 under General Requirements “Submit invoices at the awarded unit prices with signed receipt tickets showing the quantity received.”

Invoicing according to this requirement will allow for consistent first year pricing.

Please verify how invoices are to be submitted.

A4. Invoices should include Supplier’s per gallon cost (includes raw material, production, delivery, and overhead costs) and the percentage mark-up. DWR does not anticipate needing to review any contractual obligations between the Supplier and their suppliers but reserves the right to confirm the Supplier’s stated cost. This is intended to allow the Supplier to manage the variability of cost in the current market and ensure a supply of the chemical for DWR.

Q5. Item 2, Specification 1.1, page 14R

All raw materials used in the manufacturing of Magnesium Hydroxide slurry product should originate in North America. Pre-approval is needed to use suppliers outside of North America.

Submit a certificate of origin with your bid.

Certificate of origin should come from an accredited agency, such as: International Chamber of Commerce. https://iccwbo.org/resources-for-business/certificates-of-origin/

A5: Supplier should submit a certificate of origin that they feel is sufficient for DWR to determine the sources of raw materials. DWR will follow-up with the Supplier if we have any concerns.

Q6. Item 2, Specification 1.2, page 14R

Products delivered must be manufactured by the supplier bidding.

Per previous discussion with Gwinnett, Premier has both its own production locations and exclusive sales/distribution rights for additional production and supply to the Southeast US.

Primary production locations for given customers are based on strategic location of shipping channels and inventory terminals to supply customer base.

A6. Delete this requirement – note attached page 14RR.

Q7. Item 2, Specification 1.3, page 14R

Supplier should provide with the bid, an affidavit from the manufacturer guaranteeing adequate supply of material from multiple sources.

CONCERN: Should supplier provide additional locations of production and total inventory volumes available at each location? Responsible supplier should provide an affidavit from the manufacturer guaranteeing adequate supply of finished goods inventory and multiple locations within 250 miles of customer facility and also must supply an affidavit indicating how much of finished goods inventory relies on raw material supply from a foreign source subject to tariffs and supply-chain, logistics disruption.

https://urldefense.com/v3/__https:/iccwbo.org/resources-for-business/certificates-of-origin/__;!!BFH4GnwD9A!cqT6W7a-mxGgqpJC_duzJgAxxewY7eisxW5UUh9SM7Ep_Y_dkxurcl1PEtTLBrl80zh6YMBPHMQI6Q$

A7. Yes, Should supplier provide additional locations of production and total inventory volumes available at each location. No other affidavits are required.

Q8. Item 2, specification 3.1, page 14R

Provide a magnesium hydroxide slurry in potable water with greater than 50% by weight magnesium hydroxide content.

CONCERN: The volume used for bidding purposes, 1,118,000 gallons, is based on a 60% slurry basis with an average per gallon weight of 12.72 lbs per gallon (7.632 lbs active). A 50% slurry by contrast is 11.69 lbs per gallon (5.845 lbs active) and would require 1,459,808 alkaline equivalent gallons. Therefore, pricing per gallon, and using the same volume standard (1,118,000 gallons) renders cost per gallon highly disparate (as much as 30.6%) for comparative purposes. Even in the evaluation by B&C, with all products purported to be roughly 60%, there is a 9.42% difference in relative alkalinity values, which then calls into question the pricing basis, as well as consistency and reliability of the supply of finished product.

A8. The 1,118,000 gallons/year values is based off of historical usage; GCDWR reserves the right to adjust quantities and to select the product that provides the most value overall. Line Items 4.8 and 4.11 below account for the differences in mag concentration

Q9. Item 2, specification 3.1, page 14R

Moreover, a responsible supplier should be able to provide a reliable and consistent level of quality (narrow range of specs for their product), provable with historical BOLs and CoAs.

Shouldn’t the supplier indicate the specific percent solids, and specific weight per gallon on which their product is to be priced and supplied?

Most municipalities prefer to utilize gallon metrics, because gallons are easiest to track for usage rates. However, operators must be able to rely on a consistent (narrow) specification range to be able to confidently maintain gallon usage rate set points.

A9. Covered by Specification 4.5, page 14RR.

Q10. Item 2, specification 3.1, page 14R

MOREOVER: Gwinnet CO uses magnesium hydroxide for multiple purposes, including, but not limited to: odor control, biological process alkalinity and Mg supplement for nutrient recovery.

The B&C evaluation of magnesium hydroxide slurries is flawed in its ability to accurately depict the characteristics of magnesium hydroxide slurries for these applications, and furthermore, is capable of being “tricked” by magnesium hydroxide slurries that are amended with caustic soda or lime.

A10. Yes, Magnesium hydroxide slurry is used for odor and corrosion control as well as supplemental alkalinity. The performance evaluation of magnesium hydroxide slurry samples submitted to 3rd party lab will include determining if the product quality meets specs- greater than 50% by weight Mg(OH)2 content, minimum of 95% weight passing a 325-mesh screen with a minimum of 45% based on particle count being less than or equal to 25 microns, and, minimum purity of 95% by weight Mg(OH)2 with typical impurities quantified.

Q11. Item 2, specification 4.6, page 14R

Allow product manufacturing plant visits by GCDWR staff for the purpose of verification of the manufacturing process and inspection of plant hygiene.

CONCERN: Supplier should also be able to confirm available inventory levels of finished product sufficient to supply customer, to insure reliability of supply. And should disclose what fraction of supply comes from non-domestic sources that may be interrupted by international shipping and/or tarrifs.

A11. We are not concerned the domestic sources. Inventory levels covered by 1.3.

Q12. Item 2, Specification 4.7, page 15.

Supplier shall note that performance testing of their product will be required prior to award if GCDWR has not had experience with it at full-scale for odor and corrosion control. Supplier shall submit 1 L of sample of the product(s) and recommend a dosage based on their experience with GCDWR facilities. GCDWR will utilize a third-party laboratory to confirm these dosages provided by the supplier. The County reserves the right to use the results of the third-party testing to select the most effective product in terms of overall cost, including total amount of anticipated product and the anticipated labor costs associated with an inferior product.

CONCERN: Verification of long term capabilities of production and supply of a consistent quality(narrowly specified range). See concerns 3.1: B&C report insufficient. Bidder must submit affidavit that samples submitted for testing should have a certificate of origin and should be reflective of BOLs and CoAs submitted as references from customers of comparable size and operation.

A12. DWR believes the this and remaining requirements in the solicitation are sufficient to provide an open and competitive bid process allowing DWR to select a Supplier that is in the best interest of the County.

Q13. Item 2, Specification 4.8, page 15

By submitting a bid, the supplier acknowledges that it can supply this product, at the same performance quality and manufacturing specifications, at the volume necessary to fulfill the terms/ length of the annual contract. Product samples will be checked against future deliveries of product to ensure performance-based standards. The GCDWR reserves the right to conduct lab analysis on each load delivered to verify the certificate of analysis.

CONCERN: The 50-60% range (30.6 percent in alkaline value) is too disparate for true comparison of cost per gallon at a singular annual usage rate of 1,118,000 gallons of 60% versus 1,459,808 gallons of 50%. A competent and responsible supplier should be able to identify the specifications of what material they intend to supply for the duration of a contract and have sufficient provable Bills of Lading (BOLs) and Certificates of Analysis (CoAs) to support the specs of their material bid.

A responsible bidder should supply BOLs and CoAs from 3 comparably sized accounts to demonstrate ability to deliver reliable and consistent product as specified and bid.

A13. DWR believes the this and remaining requirements in the solicitation are sufficient to provide an open and competitive bid process allowing DWR to select a Supplier that is in the best interest of the County.

Q14. Item 2, Specification 4.11, page 15

Quantities in the bid schedule and supplier quotes shall be based upon dry pound weight of magnesium hydroxide.

CONCERN: Gallon and Dry Weight are measures that generally lack consistency and congruity for conversions. Certified scales generally operate on wet lb product basis for delivery. An accurate conversion to gallons is highly dependent on both percent solids analysis and density in lbs per gallon. A supplier must be able to supply consistent and reliable percent solids and density of their product in order to prevent undue operational burden on the utility. (How would operators, from F.Wayne Hill, Crooked Creek, Yellow River, and multiple Pump Stations set operational feed rate pumps for odor control, alkalinity and nutrient recovery, etc, when the product specifications allow for inconsistency and broad ranging product delivery?)

A14. DWR believes the this and remaining requirements in the solicitation are sufficient to provide an

Q15. Item 2, Specification 5.1, page 15

Payment will be for gallons of liquid received at each location. This will be based upon the supplier provided conversion factor from dry pound weight of magnesium hydroxide to gallons of liquid magnesium hydroxide product.

CONCERN: Certified Scales are generally wet lbs and must be converted to gallons or dry tons, using reliable conversions based on actual % solids and density, which must be consistent and reliable to prevent undue operational burden on the utility. See Concern in 4.11. Gallon measurements are generally a preferred metric for tracking and utilization rate purposes by operations groups.

A15. DWR believes the this and remaining requirements in the solicitation are sufficient to provide an

Q16. Item 2, Specification 5.4, page 15

Trucks will be weighed upon arrival and after offloading, to verify the total gallons of product delivered. In some cases, tank levels or truck tickets may be used instead.

CONCERN: Truck Scale Tickets are in Wet Lbs. Multiple scale tickets increase overall logistics cost for delivery.

A16. DWR believes the this and remaining requirements in the solicitation are sufficient to provide an

This addendum should be acknowledged by signing and returning this addendum as part of your bid document.

Shelley McWhorter, CPPB Purchasing Associate III

BL131-21 Page 14RR

DO NOT RETURN THIS PAGE IF YOU ARE NOT BIDDING THIS CHEMICAL. HOWEVER, IF YOU ARE SUBMITTING A BID FOR THIS CHEMICAL, FAILURE TO RETURN THIS PAGE AS PART OF YOUR MAY RESULT IN REJECTION OF

YOUR BID.

COMPLIANCE SHEETS

Supplier Name

2. Liquid Magnesium Hydroxide Comply Exception 1 Standards and Certifications

1.1 All raw materials used in the manufacturing of Magnesium Hydroxide slurry product should originate in North America. Pre-approval is needed to use suppliers outside of North America. Submit a certificate of origin with your bid.

1.2 Products delivered must be manufactured by the supplier bidding.

1.3 Supplier should provide with the bid, an affidavit from the manufacturer guaranteeing adequate supply of material from multiple sources.

2 Delivery Locations and Projected Annual Quantities

2.1 F. Wayne Hill WRC 50,000 gallons

2.2 Crooked Creek WRF 185,000 gallons

2.3 Alcovy River PS 130,000 gallons

2.4 Beaver Ruin PS 225,000 gallons

2.5 Brooks Road PS 130,000 gallons

2.6 Level Creek PS 114,000 gallons

2.7 Lower Big Haynes PS 122,000 gallons

2.8 Norris Lake PS 46,000 gallons

2.9 Patterson PS 40,000 gallons

2.10 Suwanee Creek PS 76,000 gallons

3 Material Specifications

3.1 Provide a magnesium hydroxide slurry in potable water with greater than 50% by weight magnesium hydroxide content.

3.2

Slurry solids will have a gradation with a minimum of 95% by weight passing a 325-mesh screen and a minimum of 45% based on particle count being less than or equal to 25 microns.

3.3 Slurry solids should consist of a minimum purity of 95% by weight magnesium hydroxide with typical impurities being quantified.

4 Supplier Requirements

4.1 Ship in bulk by truck by manufacturer’s tanker or a certified food grade carrier.

4.2

After order placement, product to be delivered within 72 hours or a mutually agreed to delivery schedule. Notify GCDWR 24 hours in advance of any shipment. No additional payment shall be made for shipments to multiple locations or for shipments that do not deliver a full tanker load of material.

4.3 Comply with USDOT FMCSA Regulations for transport of hazardous materials

4.4

Bid as U.S. dollars per gallon of liquid, rounded up to two (2) decimal places. If unit price bid exceeds two (2) decimal places, the bid amount will be rounded up to two (2) decimal places.

4.5 Submit certified analysis including solids content, Mg(OH)2 content by weight and sieve analysis of dry material used in slurry production.)

4.6 Allow product manufacturing plant visits by GCDWR staff for the purpose of verification of the manufacturing process and inspection of plant hygiene.