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HomeMy WebLinkAboutLetter - Quarterly Pricing AdjustmentAlt, 4ertit1jia?iii& rya June 10, 2013 City of Deerfield Beach, FL 401 SW 4th Street Deerfield Beach, FL 33441 Attn: Chad Grecsek olnpan3 RE: Quarterly Pricing Adjustment — Rehrig Pacific Recycling Roll Carts (35, 65, and 95 Gallon) — RFP #2011-12/18 Chad, Rehrig Pacific appreciates the continued business and partnership with the City of Deerfield Beach. Due to the rising costs of raw materials, Rehrig Pacific is requesting the quarterly price adjustment detailed in the bid specifications for roll out carts, RFP #2011-12/18 section 3.14 Cost Adjustments-3.14.1 Cart. This section states that the original bid pricing, after held firm for 90 days, can be adjusted quarterly comparing original resin pricing to current resin pricing. At the time of bid, Rehrig subtitted base pricing for our raw material, HDPE resin, at $0.635/16 as published in the. Chem Data Index (CDi) for June 2012. The current pricing of HDPE resin is $0.755/lb as published in the most recent CDI for June 2013 which represents a $0.12/1b increase in raw material costs. 1 have detailed below the new pricing structure to reflect the material cost increase as well as attached the CDI documents for reference. The new pricing structure will go into effect on June 30th to allow 20 days per the contract and will be held finn for the next three months. At that time both the city and Rehrig can review the current resin. market and adjust pricing accordingly as detailed in the RFP. Product Description Bid Pricing HDPE Resin $/lb June '12 HDPE Resin $/lb (Current) Resin $/lb Increase Resin 'Weight Per Container Total $ Increase New Cart Price 95 Gallon Roll Out Cart $45.40 $0.635 $0.755 $0.12 34 lbs $4.08 $49.48 65 Gallon Roll Out Cart $39.43 $0.635 $0.755 $0.12 27.5 lbs $3.30 $42.73 35 Gallon Roll Out Cart $36.48 $0.635 $0.755 $0.12 17.9 lbs $2.15 $38.63 Thank you for your time and consideration of Rehrig Pacific Company. If you have any questions or would like additional information, please contact me at 352-461-3788 or via email at reck@rehrigpacific.com. rehrigpacific.com. Respectfully submitted, ,sae Ed Accepted by: Rob Eck Auth• i d Representative Signature ESG National Sales Manager Reck!c rehrigpacific.com 352-461-3188 Authorized Name id Title Dati cc: Lisa Perkins, Dan Lynch, Eric Voss 7452 Presidents Drive — Orlando, FL 32809 407-857-3888 www.rehrigpacific.corn A FAMILY TRADITION OF GROWTH, SERVICE AND INNOVATION