TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 7, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to award Contract 17-844-3P, Furnish and Install Odor Control System at Calumet, Hanover Park and Kirie Water Reclamation Plants, to IHC Construction Companies, L.L.C., in an amount not to exceed $4,098,000.00, plus a five (5) percent allowance for change orders in an amount of $204,900.00, for a total amount not to exceed $4,302,900.00, Account 401-50000-645650, Requisition 1499356
Body
Dear Sir:
On September 6, 2018, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 17-844-3P, Furnish and Install Odor Control System at Calumet, Hanover Park and Kirie Water Reclamation Plants.
In response to a public advertisement of September 19, 2018, a bid opening was held on October 30, 2018. The bid tabulation for this contract is:
THE GEORGE SOLLITT CONSTRUCTION COMPANY (SOLLITT) $3,911,659.00
IHC CONSTRUCTION COMPANIES, L.L.C. $4,098,000.00
RAUSCH INFRASTRUCTURE LLC $4,324,380.00
One thousand three hundred sixty-three (1363) companies were notified of this contract being advertised and fifty-eight (58) companies requested specifications.
The Minority Business Entity (MBE), Women Business Entity (WBE) and Small Business Entity (SBE) goals for the contract are 20% MBE, 10% WBE, and 10% SBE.
A review of the Utilization Plan for Sollitt by the Diversity Administrator revealed the following:
This contract contained a 50% Suppliers Exception and Sollitt’s commitment to use Altra Builders, Inc., and Midco Electrical Supply as suppliers for WBE participation, which exceeds the allowable M/W/SBE suppliers utilization amount of 50% of the WBE goal. For the purpose of this contract, 50% of the 10% WBE goal is $195,582.95 that can be used for supplies. Sollitt used $339,363.00 for WBE goal attainment in their Utilization Plan for supplies. Therefore, in accordance with Section 11(h) and (i) of the Affirmative Action Ordinance, Revised Appendix D, Sollitt’s bid is considered non-responsive and rejected for failure to meet the Revised Appendix D goals and in the public’s best interest. The Director of Procurement and Materials Management has notified The George Sollitt Construction Company of this action.
IHC Construction Companies, L.L.C., the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost range for this contract is $3,420,000.00 to $4,140,000.00, placing their bid of $4,098,000.00 within the estimated cost range.
IHC Construction Companies, L.L.C., has executed the Multi-Project Labor Agreement (MPLA) Certificate as required. It is anticipated that the following trades will be utilized on this contract: bricklayers, carpenters, cement masons, electricians, glaziers, iron workers, laborers, operating engineers, painters, pipefitters, plumbers, sheet metal workers, skilled workers, and truck drivers. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
IHC Construction Companies, L.L.C., is in compliance with the Affirmative Action Ordinance, Revised Appendix D as indicated on the attached report. The Minority Business Enterprise (MBE), Women Business Enterprise (WBE) and Small Business Enterprise (SBE) utilization goals for this contract are 20% MBE, 10% WBE, and bidder offers MBE credits to satisfy the SBE participation.
The contract will require approximately thirty-six (36) people for the services.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 17-844-3P to IHC Construction Companies, L.L.C., in an amount not to exceed $4,098,000.00, plus a five (5) percent allowance for change orders in an amount of $204,900.00, for a total amount not to exceed $4,302,900.00, 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.
The contract will commence upon approval of the Contractor’s Bond and all work will be completed within 540 calendar days.
Funds are available in Account 401-50000-645650.
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 February 7, 2019
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