TRANSMITTAL LETTE R FOR BOARD MEETING OF JULY 7, 2016
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to award Contract 16-612-11, Street Sweepers at Various Locations, to Waste Management of Illinois, Inc., in an amount not to exceed $172,200.00, Account 101-66000-612420, Requisition 1420670
Body
Dear Sir:
On April 7, 2016, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 16-612-11 Street Sweepers at Various Locations.
In response to a public advertisement of May 18, 2016, a bid opening was held on May 31, 2016. The bid tabulation for this contract is:
WASTE MANAGEMENT OF ILLINOIS, INC. $172,200.00
ELGIN SWEEPING SERVICES, INC. $223,860.00
Two hundred sixteen (216) companies were notified of this contract being advertised and ten (10) companies requested specifications.
Waste Management of Illinois, Inc., the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost for this contract was $135,000.00, placing their bid of $172,200.00 approximately 27.6 percent above the estimate.
There is a 27.6 percent difference between the engineer’s estimate and Waste Management of Illinois, Inc.’s bid. The unit rate for the previous 2013-2015 street sweeping contract was $120.00 per hour, however, $110.00 per hour was used to calculate the estimate based on the assumption that there would be a savings due to the decrease in fuel prices.
The Multi-Project Labor Agreement (MPLA) was not included in this contract because of the specialized nature of the work involved.
The contract will require approximately two (2) people for the services.
The Affirmative Action Ordinance, Revised Appendix D was not included in this contract because the contract does not offer practical or cost-effective opportunities for direct or indirect subcontracting.
The work under this contract will commence upon approval of the contractor’s bond and terminate thirty-six (36) months thereafter.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 16-612-11 to Waste Management of Illinois, Inc., in an amount not to exceed $172,200.00, subject to the contractor furnishing a performance bond in form satisfactory to the Law Department and approved by the Director of Procurement and Materials Management.
Funds for the 2016 expenditure, in the amount of $45,000.00, are available in Account 101-66000-612420. The estimated expenditure for 2017 is $45,000.00, and for 2018 is $82,200.00. Funds for the 2017 and 2018 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:cm
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