TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 19, 2017
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to decrease Contract 15-632-11, Furnishing and Delivering Sodium Hypochlorite, to K. A. Steel Chemicals, Inc., in an amount of $1,900,000.00 from an amount of $6,046,542.28 to an amount not to exceed $4,146,542.28, Accounts 101-67000, 68000, 69000-623560, Purchase Order 3086305
Body
Dear Sir:
On July 9, 2015, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 15-632-11, Furnishing and Delivering Sodium Hypochlorite, to K. A. Steel Chemicals, Inc., in an amount not to exceed $8,424,124.00. The contract will expire on July 29, 2018.
As of September 29, 2017, the attached list of change orders has been approved. The effect of these change orders resulted in a decrease in an amount of $2,377,581.72 from the original amount awarded of $8,424,124.00. The current contract value is $6,046,542.28. The prior approved change orders reflect a 28.2% decrease to the original contract value.
A decrease in contract value is being requested for 2017, due to the need for sodium hypochlorite at the Calumet Water Reclamation Plant (CWRP) is less than what was anticipated. As a result, a decrease in contract value is also being requested for 2018, based on the usage in 2017 and the anticipated need for sodium hypochlorite at CWRP in 2018.
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 Contract 15-632-11, in an amount of $1,900,000.00 (approximately 31.4% of the current contract value) from an amount of $6,046,542.28 to an amount not to exceed $4,146,542.28.
Funds will be restored to Account 101-68000-623560.
Requested, John P. Murray, Director of Maintenance and Operations, BAP:SO’C:MAG:JR:SSG
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 19, 2017
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