www.mymanatee.org
Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - March 7, 2017
March 7, 2017 - Regular Meeting
Agenda Item #29


Subject
Agreement 16-0470MD - Membrane Filtration System for Lake Manatee Water Treatment Plant Filter Upgrade

Briefings
None

Contact and/or Presenter Information

Contact: Chris Daley, Financial Management Department, Procurement Division, Ext. 3048.

Presenters: Mark Simpson, Utilities Department, Water Division, Ext. 5258, and Jeff Streitmatter, Public Works Department, Project Management Division, Ext 7335.



Action Requested

Authorize the County Administrator, or his designee, to execute the Agreement for  a Submerged Ultrafiltration Membrane Filtration System with Zenon Environmental Corporation d/b/a GE Water & Process Technologies of Oakville, ON, Canada, for a total of $9,213,000.00.



Enabling/Regulating Authority

Manatee County Code of Laws



Background Discussion

The Lake Manatee Water Treatment Plant (LMWTP) includes two separate treatment trains: one for surface water from Lake Manatee and the other for groundwater from the well fields. The existing conventional surface water treatment train has a capacity of 54 million gallons per day (mgd) and comprises coagulation, flocculation, sedimentation, and multimedia filtration in filter bays A and B. 

The multimedia filters in the surface water treatment train are approaching the end of their useful life and, based on previous evaluations, a decision was made in 2013 to retrofit them with an Ultrafiltration Membrane System.

This Agreement provides for the design, fabrication, and delivery of the membrane filtration equipment and ancillary components. It also provides for a pilot system to the County, assistance during installation and commissioning of the membrane system, process consulting services for a period of three years after substantial completion, 24/7 emergency telephone support for a period of seven years after substantial completion, a seven year absolute warranty period for the membrane modules, and a guaranteed membrane replacement price for a period of twenty years after substantial completion. This Agreement also provides for a limit on the Supplier's liability to not exceed the total price paid by the County under the Agreement.

This Agreement will be executed in the name of the County originally, and will be assigned to a General Contractor designated by the County through an Invitation for Bids (IFB) procurement for the installation of the membrane equipment and ancillary items. The assignment will occur on the effective date of the agreement between the County and the selected General Contractor, which is expected to occur in or about March 2018.

The County is not obligated beyond the design (special engineering services) until it issues a Notice to Commence fabrication to Supplier, which will be done during the assignment with the General Contractor.

Upon successful completion and acceptance by the County of the initial performance testing (substantial completion date), the General Contractor will assign the Agreement back to the County for completion of the Supplier's obligations under the Agreement.

PROCUREMENT PROCESS

Through the issuance of a Request for Qualifications (RFQ), the process of soliciting and evaluating the qualifications of potential suppliers of media filters for submerged membrane filtration systems for drinking water resulted in Manatee County prequalifying GE Water & Process Technologies, Oakville, Ontario and Evoqua Water Technologies, Geneva, IL.  An Invitation to Negotiate (ITN) was issued to the prequalified suppliers to solicit proposals for the full scale system.  Meanwhile, the two firms engaged in a pilot study for the purpose of reviewing and testing each suppliers’ membrane system on the basis on lowest net present value of life cycle cost including the cost for supply and installation as well as operating and maintenance costs over a twenty year period.

An evaluation committee was formed to review the proposals and provide recommendations to the County Administrator. The evaluation committee was comprised of the following members:

  • Chris Daley, Buyer Manager, Financial Management Department (Chair)
  • Mark Simpson, Water Division Manager, Utilities Department
  • Anthony Russo, Project Manager, Public Works Department

The proposals received pursuant to the Invitation to Negotiate were reviewed in conjunction with the results of the net present value of life cycle costing analysis.  Scoping meetings were held with each proposer to further clarify the ability of the suppliers to supply, install, operate, and maintain the proposed ultrafiltration multimedia filters.  Best and final offers were submitted by both suppliers.

Based on the results of the pilot product treatment, testing and life cycle cost analyses, a submerged membrane filtrate system ultrafiltration configuration was selected for retrofitting the granular filters at LMWTP.

The Evaluation Committee convened on June 7, 2016, for the discussion of the proposals and a review of the ITN evaluation requirements.  The Committee also deliberated and decided upon clarifications needed from each proposer that would be addressed during the technical scope review meetings, a requirement of the ITN.

Technical scoping meetings were held with each proposer on June 15th and 16th, 2016, for the purposes of obtaining clarification to the technical responses of their ITN proposal. Discussions with each proposer also included the failures of Phase 1 of the Pilot Testing and the requirements of the ITN to successfully pass both Phase 2 and Phase 3 of the Pilot testing. Both proposers provided possible remedies that they might undertake to ensure successful pilot testing in Phase 2 and Phase 3, which also included an extension of the time between Phase 1 and Phase 2 for figuring out better operating conditions before Phase 2 of the pilot testing began.

Concurrent negotiations began in October 2016 by providing a draft agreement to both proposers upon successful completion of Phase 2 and Phase 3 pilot testing.  Upon receipt of final comments from each supplier, the evaluation committee convened to consider the position of each supplier, review and decide disposition of the comments to the draft, and to develop negotiation strategies.  Shortly thereafter, negotiation sessions were held with both proposers until such time as the County requested the best and final offer (BAFO) from each supplier. The BAFO was to submit any proposed additional reductions in capital costs, increases in coverage of absolute membrane and/or guaranteed membrane module life warranties, and any value engineering from their original proposal that would reduce their overall net present value of the life-cycle cost calculations from Phase 3 of the pilot testing.

On December 30, 2016, the Evaluation Committee reviewed and deliberated both of the submitted BAFOs based on the stated requirements in the ITN, continuing the acquisition process and determining a recommendation to the County Administrator.

GE Water & Process Technologies, Oakville Ontario - The firm’s BAFO provided the lowest net present value of the two proposers and included:

  • a reduction in the membrane module replacement cost
  • increased guaranteed module price validity from 14 years to 20 years
  • extended consulting and telephone support service
  • added provision of pilot system at no additional cost for additional testing

Evoqua Water Technologies, Geneva, IL - This firm’s BAFO included:

  • a reduction in capital costs
  • a reduction in the membrane module replacement cost
  • an increase in the absolute warranty period


County Attorney Review
Formal Written Review (Opinion memo must be attached)

Explanation of Other


Reviewing Attorney
Zamboni

Instructions to Board Records

Original to Board Records.

Copies of Agreement to:

Zenon Environmental Corporation d/b/a GE Water & Process Technologies, 3239 Dundas Street West, Oakville, ON Canada (jenn.watt@ge.com);

Mark Simpson (mark.simpson@mymanatee.org), and Katherine Gilmore (Katherine.gilmore@mymanatee.org), Utilities Department;

Anthony Russo (Anthony.russo@mymanatee.org), Public Works Department; and

Chris Daley (chris.daley@mymanatee.org), Financial Management Department-Procurement Division



Cost and Funds Source Account Number and Name
Utility Rates in account key 4046050470-531000 / 6050470-0001 (WTP: UltraFiltrationSystem2004)

Amount and Frequency of Recurring Costs
N/A


Attachment:  RLS 16-145 CAO Memo_signed.pdf
Attachment:  Departmental Agreement Approval memo.pdf
Attachment:  16-0470MD Agreement for Submerged UF Membrane Filtration System.pdf