5725 Chemtrade Price Increase Request 2017
Chemtrade Chemicals US LLC
90 East Halsey Road, Parsippany, NJ 07054
T 973-515-0900 F 973-515-3232
February 8, 2017
Julia A. Winkley
Contract Administration Supervisor, MPA, CTCM
City of Denton
901 B Texas Street
Denton, TX 76209
RE: Ref: File 5725-Renewal of Contract for Water Treatment Chemicals
Dear Ms. Winkley,
Per the letter and email you sent to Chemtrade, we hold the current chemical bid for Liquid Ammonium
Sulfate. The letter requested an extension of the current bid for another one year term, 4/21/17 through
4/20/18. Our records indicate we began supply of the initial bid which in April of 2015.
Over the past two years, Chemtrade has absorbed some cost increases for the Liquid Ammonium Sulfate
we manufacture and deliver to the City of Denton. Most notably, the increases have to do with higher
costs of freight, both in raw materials received for our manufacturing process, as well as freight for
delivering product to City of Denton by truck and trailer transport. As I’m sure you know, fuel costs have
held steady and at reasonable prices the past year or more. This has helped to offset some of the increases
we have seen. Yet, the base costs of freight, maintaining trucks, and keeping and paying responsible,
qualified, and safety minded drivers and equipment has risen. There are also some overhead increases for
our plant that we have seen during this time.
Chemtrade would appreciate the consideration of an extension of the current bid for an additional term with
a price increase of $10.00 per ton as is liquid ($0.005/lb) to assist with an offset the mentioned cost increases
we have seen. The current price is $0.08/lb, and the new requested price would be $0.085/lb. During the
last two year bid period we were able to hold pricing firm, and we would appreciate the same consideration
of this request as well. If this price increase request is not able to be granted we would decline another
renewal and would kindly ask that you go out for bid on this product.
Chemtrade values the long standing relationship we have with the City of Denton, and we look forward to
continuing our relationship and business for a long time to come.
Regards,
Paul Peters
Business Manager
Chemtrade Chemicals US