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Orange • Sanitation District
Ferric Chloride Purchase
Contract Awards
operations Committee
May 17 2013
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Treatment Plants Iron Salts Usage
H2S Control
Enhanced in Digesters
Solids
Odor & Removal
Corrosion
Control
W��
Trickling Filters
Headworks Solids
Preliminary
Collections Treatment primary A.S. Plants Processing
System
Treatment Secondary
(Trunkl ne Treatment) Treatment
Solids Storage
& Disposal
Multiple Contract Drivers
• Long-Term Sustainability
— 2010 Chemical Sustainability Study evaluated long-term
sustainability of OCSD's bulk chemicals
• Ferric chloride identified as a critical chemical
— Single supplier for over a decade
— OCSD has had previous experience with chemical supply
disruption
• Other POTWs have used multiple supplier
contracts
• Price Escalation
— Since single supplier, unit costs have increased greater
than 100%
Historical Ferric Chloride Pricing
$800
$700
May 2005 Kemiron $6 74
became a subsidiary of
Kemira
$600 $603
$548
$500
c
Yo $462
r 6
$aoo
$333
p $345
U $300 $ 79 $3 $320
46 $243 $260
34 $221 $
$200
73
—4—cast/dry ton
$100
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Multiple Contract Drivers
• Consequences of Extended Iron Salt Supply
Disruption
— Primary/Secondary Treatment Process Impacts
— Risk of NPDES Permit Violation
— Air Quality Permit Violations due to 1-12S Levels
• SCAQMD Fines Related to Permit Non-Compliance - Minimum of
$5000/day
— Increased Solids and Power Consumption Costs
• Solids removal costs would increase due to increased secondary
treatment, digestion, and dewatering costs - about $10,000/day
• High H2S digester gas cannot be used for powering the Cen-Gen
Engines - power would have to be purchased at about $20,000/day
Ferric Chloride Purchase
RFP Process
• Proposals solicited in increments of 1000 dry tons per year
up to 6000 dry tons total annual usage
• Four qualified suppliers submitted proposals
Staff Recommendation
• Award contract to four qualified suppliers
Total Estimated
Vendor Quantity Unit Price Cost
Dry Tons/Yr $/Dry Ton $/Yr
Kemira 3000 $ 570.76 $ 1,712,280
CWT 1000 $ 537.20 $ 537,200
Pencco 1000 $ 576.31 $ 576,310
Thatcher 1000 $ 610.00 $ 610,000
Basis for Staff Recommendations
• Balances supply streams from local vs regional
and start-ups vs. established suppliers
• Long-term opportunity to establish new supply
corridor and to meet all our needs at lowest cost
• Opportunity to evaluate performance of three new
suppliers
• 15% savings compared to FY 11-12 contract
Staff believes the above benefits outweigh additional
4% savings for lowest two supplier option
Orange County Sanitation District We're here for you.