June 1, 2004

SUBJECT: Award of Bid No. F0304-64 for Agricultural Chemicals

Approval is requested for the award of a one-year contract to Target Specialty Products of San Jose, with an option to extend the contract for two additional one-year periods, for the purchase of agricultural chemicals for the Departments of Parks and Recreation and Public Works.

A wide variety of agricultural chemicals are used in the maintenance of City parks, golf courses and landscaped areas throughout the City. These products are typically purchased through the use of a blanket purchase order established as the result of a competitive bidding process. Orders are placed throughout the contract term by City staff, as chemicals are required.

Most recently, agricultural chemicals were provided by United Horticulture Supply of Fremont. This contract expires on May 31, 2004.

Bid specifications were prepared by Purchasing staff, based upon input from the contract's primary users; and Invitation for Bids No. F0304-64 was distributed to potential bidders through the DemandStar by Onvia public procurement network. Six firms requested bid specifications.

Sealed bids were received and publicly opened on May 5, 2004. Four bids were received.

The bid document solicited bids on seventy agricultural chemicals. Bidders were asked to calculate an extended total for each line item by multiplying their unit bid price by the City's estimated annual usage. Bids were provided by all four bidders for only thirty-nine of the seventy chemicals. Therefore, to achieve an "apples to apples" comparison of bid pricing, bids were evaluated, based upon the aggregate total for these thirty-nine chemicals. Following is the result of that comparison:

Staff, therefore, recommends award of contract to the lowest aggregate bidder, Target Specialty Products. In addition to being the lowest bidder on the thirty-nine comparison chemicals, Target bid on all but two of the remaining thirty-one chemicals, thereby offering a more comprehensive variety of City-required products than the other bidders.

This year’s bid pricing is comparable to last year’s. Although bidders were given an estimated annual usage for each line item, the usage figures were estimates only for the purpose of bid comparison. Actual usage and, therefore, total costs vary from year to year, depending upon a variety of factors which are impossible to predict. During the previous twelve months, Parks and Recreation expenditures with United Horticulture were approximately $68,000 and Public Works expenditures were approximately $15,000. Funds are available in various City accounts.

It is recommended that Council award a one-year contract, with an option to extend the contract for two additional one-year periods, to Target Specialty Products for agricultural chemicals.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary J. Bradley
Director, Finance

Approved by:

Amy Chan
City Manager

Attachment

Draft Blanket Purchase Order (.pdf format)