City moves forward on competitive Olin contract for sodium hypochlorite; analyst urges narrower not‑to‑exceed amount

The committee reviewed a proposed term contract to purchase sodium hypochlorite — the primary disinfectant used in water and wastewater treatment — from Olin Corporation under a competitive bidding process.

Jacqui Fong, assistant director of the Office of Contract Administration, said Olin was the low bidder, with an estimated three‑year cost of approximately $14,000,000 and a requested not‑to‑exceed amount of $23,500,000 to account for two optional one‑year extensions. "The low bidder, Olin, is the largest producer of sodium hypochlorite in California and North America," Fong said, and staff recommended the contract based on price and the vendor’s production capacity.

The budget analyst recommended an amendment to set the not‑to‑exceed figure equal to the actual three‑year bid ($14,002,884) rather than the larger amount that included optional extension authority, arguing the three‑year bid amount is the known contract value. The committee discussed that staff rebid to test market pricing rather than exercise prior contract extensions, and Purchasing staff said market indexes indicated lower prices.

Supervisors also queried how hypochlorite usage relates to water conservation and wastewater needs. Tommy Mawala, assistant general manager for the San Francisco Public Utilities Commission, said conservation has reduced potable water usage and revenues but that wastewater treatment, odor control and wet‑weather flows drive chemical needs — during storms treated volumes rise substantially.

The committee advanced the item with the budget analyst’s recommended not‑to‑exceed level for evaluation and review before final Board action.