TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 21, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase orders to Alfa Laval, Inc., to Furnish and Deliver Repair Parts for Alfa Laval Centrifuges and Ashbrook Simon-Hartley Gravity Belt Thickeners to Various Locations, in a total amount not to exceed $2,250,000.00, Accounts 101-66000, 67000, 68000, 69000-623070, 623090, 623270
Body
Dear Sir:
Authorization is requested to issue purchase orders to Alfa Laval, Inc., to furnish and deliver repair parts and components for the Alfa Laval thickening centrifuges and the Ashbrook Simon-Hartley gravity belt thickeners, at various locations, on an as needed basis. All repair parts and components under this authority will be delivered prior to March 31, 2022.
Alfa Laval, Inc., is the sole source for Alfa Laval and Ashbrook Simon-Hartley repair parts and components. Alfa Laval, Inc., has submitted prices for the repair parts and components required. Purchase orders will be issued for repair parts and components as needed, based on the prices received from Alfa Laval, Inc. Inasmuch as Alfa Laval, Inc., is the only source of supply for the repair parts and components required, nothing would be gained by advertising for bids (Section 11.4 of the Purchasing Act).
The repair parts and components are needed in the thickening and dewatering centrifuges and the gravity belt thickeners which support the sludge thickening and biosolids dewatering processes. M & O personnel will use the parts for repair and maintenance activities.
Alfa Laval, Inc., is not registered to transact business in Illinois, but has submitted a certificate of good standing from the State of Pennsylvania. The Director of Maintenance and Operations has recommended to move forward with the award.
The Multi-Project Labor Agreement is not applicable because this is primarily a furnish and deliver contract.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue purchase orders to Alfa Laval, Inc., in an amount not to exceed $2,250,000.00, on an as needed basis ending March 31, 2022. Purchase orders will be issued when the material is required. Payment will be based on the unit cost received by Alfa Laval, Inc.
Funds for purchase orders to be issued under this Board authority will be limited by pricing periods for Accounts 101-66000, 67000, 68000, 69000-623070, 623090, 623270. The estimated expenditures for the period of 4/1/2019 through 3/31/2020 are $600,000.00, 4/1/2020 through 3/31/2021 are $825,000.00, and 4/1/2021 through 3/31/2022 are $825,000.00. Funds for years 2020, 2021, and 2022 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Requested, John P. Murray, Director of Maintenance and Operations
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:MS:dp
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 March 21, 2019