Letter_to_City_of_Plant_City_Phosphate_pricing_(November_2025).pdf
PDF 180 KB Posted
- Attached to
- Notice of Intent to Sole Source Aqua Solv SC
- Solicitation number
- 26-010UO-MD-NOI
- Issued by
- Hillsborough County, Florida
About this file
This is a pricing and partnership letter from Flo-Tec Inc. to the City of Plant City Water Department regarding the proprietary water treatment chemical Aqua Solv SC, which has been supplied to the municipality for nearly 45 years since its development in 1980. The letter outlines Flo-Tec's commitment to stable pricing and clarifies the company's proposed pricing structure for the 2025 purchasing year. The chemical is NSF-approved and used to mitigate corrosion in the city's metal piping infrastructure. No specific quantities, response dates, bidder meetings, or award dates are mentioned in this correspondence, as the letter serves primarily as a pricing clarification following a direct conversation between Flo-Tec's General Manager Jerry Virgilio and Mr. Darrow of the City of Plant City Water Department on November 3, 2025.
Flo-Tec proposes a pricing methodology based on a 35 percent markup over actual raw material costs, with prices adjusted up or down as raw material costs fluctuate at the time of order. Previously, the company maintained stable pricing from 2008 to July 2021, then introduced a flexible pricing structure in 2022 due to pandemic-related supply chain volatility. The letter cites anticipated tariff impacts on imported materials and rising operational costs (labor, fuel, NSF registration fees) as justification for the variable pricing approach. Flo-Tec maintains multiple NSF-approved raw material suppliers to ensure competitive pricing and availability and notes its significant purchasing power through manufacturing over 25,000 multi-family housing units with similar products. Raw material invoices will be provided upon request. The letter emphasizes Flo-Tec's status as sole supplier and legacy partner, framing the pricing adjustment as necessary to maintain profitability while serving the city's long-term water treatment needs.
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Other files
| File | Type | Posted |
|---|---|---|
| 2025_Sole_Source_Letter.pdf | ||
| Letter_to_City_of_Plant_City_Phosphate_pricing_(November_2025).pdf |
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Text version
ENGINEERED SOLUTIONS
Dear Mr. Darrow (City of Plant City Water Dept.): November 3, 2025
Good afternoon, Per our conversation today please accept this letter to reiterate the content of our conversation.
Flo-Tec has made a long-term commitment to keep the product pricing stable to COPCWD, especially since we are the sole supplier for this product. In that regard, Flo-Tec has acted as a partner and a shock absorber for small price fluctuations, over many years. We have provided this proprietary blend to the COPCWD for almost 45 years and we consider you is a legacy account, since Hal Thomas, founder of Flo-Tec, developed this formula with input from Mr.
Nabong (City Engineer) in 1980. Before the July 2021 price adjustment our previous price increase for this blend was in
2008, since the raw material costs tended to be very stable.
In 2022, we proposed a unique pricing structure, due to supply chain issues (caused by the pandemic) that resulted in a very volatile market for the raw materials used in this blend. This program has been used for the past 2 years and has maintained the city’s cost at about 30% markup of the actual raw material costs (capping the markup to 50%). Although, the in the past 12-months, the prices have been stable, we are being told by suppliers to prepare for the effects of the proposed tariffs on imports from China and others to drive up the domestically produced raw materials (which Flo-Tec only purchases US produced raw materials). Because of this, it would be very difficult to provide a fixed price to
COPCWD for the 2025 purchasing year period.
When the Chinese product availability became limited during the pandemic, we experienced nearly 25% increases in the raw materials for this blend in just a four-month period. That doesn't even consider other costs that have also been on the rise (labor, fuel, NSF registrations fees, etc.). The Aqua-Solv-SC is an NSF approved compound, as such we are limited to a select group of approved NSF raw materials manufacturers/suppliers. We maintain a minimum of three vendors to get competitive pricing and assure availability.
Our new proposal, which was instituted in 2025, working within the framework of the City of Plant City and allows your account to remain modestly profitable to Flo-Tec Inc.. Flo-Tec will calculate your price based on a 35% markup of the cost of the raw materials only, as described above, as of the current costs at the time of your order. Under this pricing method we will adjust the city’s price (either up or down) should the costs for these raw materials change.
Raw material invoices will be made available upon request.
Further, we assure you that we are always pursuing the best raw material prices for qualified raw materials. We also manufacture another NSF registered drinking water product used in over 25,000 multi-family units which includes the same raw materials as COPCWD’s (in different ratios), so our buying power with our vendors is significant.
Thank you for the continued partnership with us to provide Plant City residents with safe potable water.
Best Regards, Jerry Virgilio
General Manager
Flo-Tec Inc.
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