Title
Resolution to Approve a Contract with Pace Analytical Services for Environmental Services Laboratory, RFP 17-03 (estimated $56,000.00/year)
Memorandum
The City’s Environmental Services Laboratory (Lab) is responsible for analyzing drinking water and wastewater process and compliance samples. The Lab also analyzes storm water samples and construction samples associated with City projects. While the lab is certified and staffed to perform the majority of analyses needed, several parameters require equipment that the City does not possess. The infrequent nature of these additional analyses do not warrant the investment necessary to perform them. The environmental services lab historically has sent analyses that it is unable to perform to multiple contract laboratories. By consolidating the outsourcing of laboratory work with a single vendor, the City is able to take advantage of an economy of scale resulting in decreased cost.
A request for proposal, RFP No. 17-03, for Certified Laboratory water and wastewater testing was published in February. The RFP solicited proposals from Certified Laboratories to perform 47 different analytical tests for approximately 600 samples per year.
The City received proposals from the following four (4) bidders:
Pace Analytical Services
Merit Laboratories, Inc.
Eurofins | Eaton Analytical
Paragon Laboratories, Inc.
Based on the quality of the proposal and competitiveness of pricing, staff recommends entering into a contract with Pace Analytical Services to provide project management and laboratory testing included in RFP No. 17-03.
It is also recommended that the purchasing agreement be eligible for renewal for four (4) additional one (1) year periods, if there is mutual agreement by 90 days prior to the end of the then current contract term, if the City deems it to be in its best interest, and subject to the availability of funding.
It is also recommended that a contingency be added to this agreement in each of the first two years. The contingency is for the analysis related to the fourth Unregulated Contaminant Monitoring Rule (UCMR 4). UCMR 4 mandates required monitoring for 30 chemical contaminants between 2018 and 2020 using analytical methods approved by the United States Environmental Protection Agency (EPA). All laboratories conducting analyses for UCMR must also be approved by the EPA. Approved laboratories will be published in mid-2017. Due to the delay in EPA approval of the laboratories, none of the bidders was able to provide a firm price for the UCMR 4 analyses. Therefore, we are requesting a contingency $11,000.00 per year for FY18 and FY19, which is the EPA-estimated cost for UMCR 4 sampling.
Funds are specifically budgeted for this purchase in the approved FY18 Operations and Maintenance Budgets for the Water Supply System Fund, Storm Water and the Sewage Disposal System Fund.
Pace Analytical Services complies with the City of Ann Arbor’s Living Wage and Non-discrimination ordinances.
Staff
Prepared by: Wendy Schultz, Environmental Laboratory Supervisor
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, State of Michigan environmental and health regulations require a State-certified laboratory to perform analytical testing for many drinking water and wastewater parameters;
Whereas, The City of Ann Arbor’s Environmental Laboratory is not certified to perform several of the analyses that are required for both drinking water and wastewater compliance;
Whereas, Pace Analytical Service meets the qualifications required to perform the complete scope of services requested at the lowest cost;
Whereas, The Unregulated Contaminant Monitoring Rule 4 (UCMR 4) mandates that utilities that serve over 100,000 customers complete required analyses during the City’s FY18 and FY19 at an estimated cost of $11,000.00 per year;
Whereas, Funding is available in the approved FY18 Operations and Maintenance Budgets of the Water Supply System, Storm Water System and the Sewage Disposal System; and
Whereas, Pace Analytical Services complies with the City’s Non-Discrimination and Living Wage Ordinances;
RESOLVED, That Council accept the proposal and approve the Professional Services Agreement for $56,000.00 with Pace Analytical Services through June 30, 2018;
RESOLVED, That Council approve a contingency in the amount of $11,000.00 per year for change orders to be approved by the City Administrator in FY18 and FY19 for Pace Analytical Services to conduct UCMR 4 sampling analyses, subject to the availability of funding in FY19;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said agreement after approval as to form by the City Attorney and approval as to substance by the Public Services Administrator and the City Administrator; and
RESOLVED, The City Administrator be authorized to renew the purchasing agreement for up to four (4), one- year (1) periods at the mutual acceptance of both parties and subject to the availability of funding.