TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 7, 2016
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Issue purchase orders to Hitachi America, LTD., to Provide Replacement Parts for the TARP Split Case Centrifugal Pumps at Various Locations, in a total amount not to exceed $850,000.00, Accounts 101-66000, 67000, 68000, 69000-623270
Body
Dear Sir:
Authorization is requested to issue purchase orders to Hitachi America, LTD., to provide replacement parts for the TARP split case centrifugal pumps to various locations, on an as needed basis for a three year period ending June 30, 2019.
Hitachi America, LTD., the sole source distributor for Hitachi split case centrifugal pump parts, has submitted prices for the parts required. The pumps perform dewatering of the TARP system tunnels and reservoirs. The equipment is manufactured or assembled in Japan. The purchase orders will be issued for the pump parts as needed based on market quote pricing as requested from Hitachi America, LTD. Inasmuch as Hitachi America, LTD., is the only source of supply for the parts required, nothing would be gained by advertising for bids (Section 11.4 of the Purchasing Act).
Hitachi America, LTD., is registered and in good standing with the State of Illinois.
The Multi-Project Labor Agreement is not applicable because this is primarily a furnish and deliver contract.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue purchase orders to Hitachi America, LTD., in an amount not to exceed $850,000.00.
Funds for purchase orders to be issued under this Board authority will be limited by pricing periods for Accounts 101-66000, 67000, 68000, 69000-623270. The estimated expenditures for the period of 07/01/2016 through 06/30/2017 are $225,000.00, 07/01/2017 through 06/30/2018 are $250,000.00, and 07/01/2018 through 06/30/2019 are $375,000.00. Funds for years 2017, 2018, and 2019 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Requested, John P. Murray, Acting Director of Maintenance and Operations
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:CD:jk
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 July 7, 2016