Central Alabama Water locks in chlorine price drop amid $1.4m procurement sweep

Central Alabama Water locks in chlorine price drop amid $1.4m procurement sweepThe utility board approved multiple annual supply contracts, noting a favorable drop in chemical costs while announcing plans to implement new software to tighten warehouse inventory tracking.

Harcros Chemicals was awarded a $453,040 contract for liquid chlorine, with prices dropping to $0.809 per pound from $0.91 last year.

Ferguson Waterworks secured an $892,885 agreement for mechanical joint fittings, comprising both AIS and non-AIS materials.

The utility is introducing new inventory tracking software and cycle counts to improve oversight of warehouse materials.

A $596,367 contract extension for crushed limestone was approved despite questions over its sole-bidder status.

Central Alabama Water has locked in lower chemical treatment costs for 2026, driven by recent shifts in petroleum markets. During its March 6 board meeting, the utility awarded an estimated $453,040 contract to Harcros Chemicals for liquid chlorine. A board member noted that the per-pound price fell to $0.809, down from $0.91 the previous year. The utility attributed the favorable pricing to the correlation between chlorine and recent petroleum prices, calling it a "good deal" for the board. The board also approved two equipment supply contracts to support its water network. Ferguson Waterworks won an $892,885.32 annual contract for mechanical joint fittings, which includes $59,549.97 in American Iron and Steel (AIS) compliant fittings and $833,335.35 in non-AIS fittings. Additionally, Empire Pipe and Supply was awarded a $26,574.89 contract for flange fittings. Addressing the volume of newly procured materials, the board discussed ongoing improvements to the utility's warehouse management. David Walker stated that the utility is collaborating with its accounting and internal audit teams to implement cycle counts. To further tighten oversight of materials leaving the warehouse, the utility plans to add new inventory tracking software. In other procurement business, the board approved a $596,367.80 one-year contract extension with Wade Sand and Gravel for crushed limestone. Following questions from the board regarding the sole-bidder status of the contract, staff defended the pricing at $18 to $19 per ton, though the utility agreed to check the broader market for future savings opportunities.