TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 6, 2016
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to increase Contract 15-935-11, Furnishing and Delivering Sodium Hydroxide, to K. A. Steel Chemicals, Inc., in an amount of $146,000.00 from an amount of $679,016.00 to an amount not to exceed $825,016.00, Account 101-69000-623560, Purchase Order 3086584
Body
Dear Sir:
On August 6, 2015, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order for Contract 15-935-11, Furnishing and Delivering Sodium Hydroxide, to K. A. Steel Chemicals, Inc., in an amount of $765,063.00. The contract expires on August 26, 2018.
As of September 21, 2016, the attached list of change orders has been approved. The effect of these change orders resulted in a decrease in an amount of $86,047.00 from the original amount awarded of $765,063.00. The current contract value is $679,016.00. The prior approved change orders reflect a 11.2% decrease to the original contract value.
An increase is needed because the startup of the Ostara process requires more sodium hydroxide than originally anticipated.
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 increase Contract 15-935-11, in an amount of $146,000.00 (21.5% of the current contract value) from an amount of $679,016.00 to an amount not to exceed $825,016.00.
Funds are available in Account 101-69000-623560.
Requested, John P. Murray, Acting Director of Maintenance and Operations, BAP:SO’C:MAG:JR: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 October 6, 2016
Attachment