
Subject
title
Award and Authorize City Manager to execute a contract with Denali Water Solutions, LLC. of Russellville, Arkansas for sludge hauling services responsive to IFB #28-24 in an Aggregate Amount Not to Exceed $133,320 Through June 30, 2025, With an Option to Extend for Four (4) Additional One-Year Periods. e

Department
PW - Management & Support

Recommendation
Staff recommends that the Mayor and Award and Authorize City Manager to execute a contract in the form attached as approved by the City Attorney, with Denali Water Solutions, LLC. of Russellville, Arkansas for sludge hauling services responsive to IFB #28-24 in an Aggregate Amount Not to Exceed $133,320 Through June 30, 2025, With an Option to Extend for Four (4) Additional One-Year Periods.

Discussion
The City of Rockville Water Treatment Plant (WTP) removes solids and organic matter in the water treatment process using chemical and physical methods. The solids are concentrated in two gravity thickeners, and then dewatered through a plate and frame filter press at the WTP site. The dewatered solids (sludge) are then hauled off-site by a contractor and recycled. The quantity of solids produced is unpredictable and entirely dependent on the raw water quality from the Potomac River and the City’s water demand. This contract is for hauling and disposal of the dewatered solids.

Mayor and Council History
This is the first time this item has been brought before the Mayor and Council.

Procurement
On March 15, 2024, IFB #28-24 Sludge Hauling Services was posted on the City’s website and electronically provided to 326 prospective bidders via the e-Maryland Marketplace. Of the prospective bidders, 70 were Disadvantaged Business Enterprises (DBE), 73 were Minority Business Enterprises (MBE), and 45 were Veteran-Owned Small Business Enterprises (VSBE). In addition, a notice was sent directly to departmentally suggested sources.
Three sealed bids were received and opened on April 12, 2024. The bids were tabulated and evaluated. One vendor opted to withdraw their bid due to a mathematical error in the calculation of their bid. The successful vendor is provided in the chart below. The not to exceed award amount for sludge hauling services is determined as the bid amount plus 10 percent contingency to allow for the unpredictable quality of the Potomac River water, which could result in higher solids removal.
|
Bidder |
MFD-V Status |
Bid Amount |
Award Amount |
|
ReAgg LLC, Temple Hills, Maryland |
Non-MFD-V |
Withdrawn |
Withdrawn |
|
BackRoad Transportation, Inc., Upper Marlboro, Maryland |
MFD-V |
$308,160.00 |
N/A |
|
Denali Water Solutions LLC, Russellville, Arkansas |
Non-MFD-V |
$121,200.00 |
$133,320.00 |
In accordance with Section 17-39 of the Rockville City Code, Awarding Authority, (a) All contracts involving more than one hundred thousand dollars ($100,000) shall be awarded by the Mayor and Council.
The draft contract for IFB 28-24 Sludge Hauling Services, in a form substantially as attached, as approved by the City Attorney, is provided as Attachment A.
To view all bid documents and contract exhibits, please click the link below.
<https://www.swisstransfer.com/d/5ca6ea7b-6141-43ae-adaa-c497e1e726e8>
Fiscal Impact
The FY 2025 Water Treatment Plant operating budget includes funding of $78,900 for contracted refuse services. The contract award exceeds the FY 2025 adopted budget for these services but provides capacity for unanticipated needs that may occur due to the unpredictable nature of the raw water quality and the volume of disposal services that could be needed. Water Fund contingency of $60,000 is included in the FY 2025 budget to support unanticipated needs. Funding in future years is subject to Mayor and Council appropriations.
Next Steps
Upon Mayor and Council approval, the Procurement Division will obtain insurance certificates, obtain contract signatures, and issue a master agreement to Denali Water Solutions, LLC.