TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 11, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to increase purchase order with Canon Solutions America, Inc., for the leasing of multifunctional photocopier devices in an amount of $70,000.00, from an amount of $1,551,596.39, to an amount not to exceed $1,621,596.39, Account 101-27000-612330, Purchase Order 3079801
Body
Dear Sir:
On November 7, 2013, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order to Canon Solutions America Inc., for the leasing of multifunctional photocopier devices and related services under the City of Chicago contract 28364, in an amount not to exceed $157,182.00. The contract expires on December 31, 2019.
In May 2014, at the Executive Director’s request, a pilot study was conducted with the lease of an initial 7 multifunctional photocopier devices in the amount of $157,182.00. The devices were strategically placed throughout the District in high volume print areas to determine the functionality and durability of the devices. Upon satisfactory completion of the pilot study, the leasing of an additional 47 black and white and 6 color devices was approved by the Board of Commissioners on September 4, 2014, resulting in an increase of $1,322,924.00 or 816.7% of the contract value of $161,978.80 at the time.
As of February 1, 2018, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $1,394,414.39, from the original amount awarded of $157,182.00. The current contract value is $1,551,596.39. The prior approved change orders reflect a 887.13% increase to the original contract value.
The change is necessary due to the addition of new machines, raising the monthly base charge by $3,081.36 per month, the associated increase in click charges, and the addition of one black and white leased printer to satisfy an approved interdepartmental request.
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 the purchase order in an amount of $70,000.00 (4.5% of the current contract value), from an amount of $1,551,596.39, to an amount not to exceed $1,621,596.39.
Funds are available in Account 101-27000-612330.
Requested, John H. Sudduth, Director of Information Technology, JS:BTS
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 July 11, 2019
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