TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 17, 2014
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
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Authority to decrease purchase order and amend the agreement with Emerson Process Management Power & Water Solutions, Inc., for Hardware and Software Repair Services to Maintain the Emerson DCS Process Control Systems at the Egan, Kirie and Hanover Park Water Reclamation Plants, in an amount of $37,900.00, from an amount of $294,863.00, to an amount not to exceed $256,963.00, Account 101-67000-612650, Purchase Order 3072044
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Dear Sir:
On July 14, 2011, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with Emerson Process Management Power & Water Solutions, Inc., for hardware and software repair services to maintain the Emerson DCS process control systems at the Egan, Kirie and Hanover Park Water Reclamation Plants, in an amount not to exceed $496,400.00. The purchase order expires on September 30, 2014.
As of March 17, 2014, the attached list of change orders has been approved. The effect of these change orders resulted in a decrease in an amount of $201,537.00 from the original amount awarded of $496,400.00. The current contract value is $294,863.00. The prior approved change orders reflect a 41% decrease to the original contract value.
A decrease is being requested because the change-over to in-house maintenance for the process control systems will result in less than anticipated utilization in 2014.
This change order is in compliance with the Illinois Criminal Code since the change is due to circumstances not reasonably foreseeable at the time the contract was signed, and is in the best interest of the District.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a change order to decrease the purchase order and amend the agreement in an amount of $37,900.00 (approximately 12.9% of the current contract value) from an amount of $294,863.00, to an amount not to exceed $256,963.00.
Funds will be restored in Account 101-67000-612650.
Requested, Manju Prakash Sharma, Director of Maintenance and Operations, SES:SO'C:MAG:SAF:JK
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for April 17, 2014
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