TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 15, 2016
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Issue purchase order for Contract 16-641-11, Furnishing and Delivering Liquid Carbon Dioxide to the Stickney Water Reclamation Plant, to Air Liquide Industrial US, LP, in an amount not to exceed $1,032,000.00, Account 101-69000-623560, Requisition 1426350
Body
Dear Sir:
On May 19, 2016, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 16-641-11 Furnishing and Delivering Liquid Carbon Dioxide to the Stickney Water Reclamation Plant.
On June 2, 2016, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 16-641-11 Furnishing and Delivering Liquid Carbon Dioxide to the Stickney Water Reclamation Plant.
Authorization to rescind Board Order to obtain authority to advertise for Contract 16-641-11 at the Board meeting of May 19, 2016 was approved by the Board of Commissioners at the Board meeting of June 16, 2016. The authorization was rescinded because authority to advertise was subsequently revised, resubmitted and approved at the Board meeting of June 2, 2016.
In response to a public advertisement of July 20, 2016, a bid opening was held on August 9, 2016. The bid tabulation for this contract is:
AIR LIQUIDE INDUSTRIAL US, LP *$1,032,000.00
AIR PRODUCTS & CHEMICALS INC. $1,077,000.00
PRAXAIR, INC. $1,177,680.00
LINDE LLC $1,279,800.00
*corrected total
One hundred fifty-two (152) companies were notified of this contract being advertised and seventeen (17) companies requested specifications.
Air Liquide Industrial US, LP, the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost for this contract was $1,280,000.00, placing the total bid of $1,032,000.00, approximately 19.4 percent below the estimate.
The contract shall commence five days after mailing of the purchase order and terminate three years thereafter.
The Multi-Project Labor Agreement (MPLA) was not included in this contract because it is primarily a furnish and deliver contract.
The Affirmative Action Ordinance, Revised Appendix D was not included in this contract because it is primarily a furnish and deliver contract.
The bid deposit in the amount of $64,000.00 will be retained in lieu of a performance bond, which is satisfactory to the Law Department and approved by the Director of Procurement and Materials Management.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order for Contract 16-641-11, to Air Liquide Industrial US, LP, in an amount not to exceed $1,032,000.00.
Funds for the 2016 expenditure in the amount of $90,000.00, are available in Account 101-69000-623560. The estimated expenditure for 2017 is $341,000.00, for 2018 is $341,000.00, and for 2019 is $260,000.00. Funds for the 2017, 2018, and 2019 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 September 15, 2016