Request to post a due diligence procurement 4-7-21~2.docx

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Attached to
Notice of a Due Diligence Posting
Solicitation number
BD-21-1021-DFS-DFS01-61977
Issued by
Middlesex County, Massachusetts

About this file

The document is a request for a Due Diligence Posting from the Department of Fire Services in Massachusetts. The Department is seeking to purchase three "Frac" tanks, each with a 21,000-gallon capacity, and associated heaters that are currently being rented. The purchase will provide a more cost-effective solution than long-term rental, as it will eliminate the need for regular cleaning and contaminant disposal between rental periods. The Department has reached out to six vendors registered in the Commbuys system with the relevant commodity code, but only received a response from one vendor indicating they do not produce this type of tank.

The decision to purchase the tanks and heaters is based on an analysis of the rental and end-of-rental costs, which are estimated to be $59,832 annually, plus an additional $2,250 for tank cleaning and $33,000 to $62,000 for contaminant disposal. In contrast, the vendor Rain for Rent has offered to sell the three tanks and heaters to the Department for a total of $21,000.

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Text version

Due Diligence Posting of Notice of Intent to Purchase a Product

The Department of Fire Services is requesting to conduct a Due Diligence Posting in order to purchase (3) “Frac” tanks (large container that is used for the storage of liquids) and heaters that are currently rented. Each tank holds 21,000 gallons and they are all located on the DFS Stow Campus – 1 State Road, Stow MA.

DFS wants to purchase them for a water treatment system and a storage of water before and during treatment due to contaminants. Purchasing is more affordable than long-term rental when factoring in the cost to clean the tank prior to their return during each rental period. By owning the tanks, we can postpone cleaning and removing residual sludge for a few years. When renting, we need to have the tanks cleaned after each use which costs more than the purchase price of the tanks.

The vendor that the Department of Fire Services would like to purchase these from is- “Rain for Rent”. They have indicated that they will sell the tanks and heaters to DFS for $7,000 each for a total of $21,000.

The Department is posting this Notice rather than conducting a full procurement because the Department believes this opportunity represents best value to the Commonwealth and is utilizing this Due Diligence Posting to ensure that the process is open, fair and competitive.

DFS has already reached out to 6 vendors (listed below) for quotes. They are registered in the Commbuys system with the following commodity code- 24-11-18-03-0000 (Containers/ Storage/ tanks, cylinders & their accessories/ Storage tanks). DFS received one response from Bayhead Products that they don’t make this type of tank.

CF Technologies- jessica@cftechnologies.com – No response Bayhead Products- Marcia@bayheadproducts.com- Do not make this type of tank Clarion Municipal- erikf@oneclarion.com- no response Bane- undeliverable ChemTainer Industries- info@chemtainer.com- no response Comm Tank Incorporated- ddamico@commtank.com – no response

The decision to exercise this option was reached after review of the cleaning and disposal costs at end of rental-

Rental & End of Rental costs- Rental cost per month/ year for tanks- $812 per tank x 3 = $2,436 $2,436 X 12 = $29,232 Rental cost per month/ year for heaters- $850 per heater x 3 = $2,550 $2,550 X 12 = $30,600 Tank Cleaning- $750 per tank- $750 x 3 = $2,250 Disposal cost of contaminants- (Based on weight for all 3 tanks) Estimate- $33,000 - $62,000

Just the yearly rental costs are $59,832, once you add in the cleaning and disposal fees the annual cost of continuing to rent is not feasible.

If there are any questions please reach out to-

Mary Joslin Buyer Department of Fire Services Mary.Joslin@mass.gov

File details come from the government source that posted it. Updated .