TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 11, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase orders to Hitachi America, Ltd., to Provide Replacement Parts for the TARP Split Case Centrifugal Pumps at Various Locations, in an amount not to exceed $1,525,000.00, Accounts 101-68000, 69000-623070, 623090, 623270
Body
Dear Sir:
Authorization is requested to issue purchase orders to Hitachi America, Ltd., to provide replacement parts for the TARP pumps at the Mainstream Pumping Station and Calumet Water Reclamation Plant, on an as needed basis for a three year period ending June 30, 2022. The pumps perform dewatering of the TARP system tunnels and reservoirs.
Hitachi America, Ltd. is the sole source distributor for Hitachi pump parts. The equipment is manufactured or assembled in Japan. The purchase orders will be issued for the pump parts, as needed, based on market quote pricing as requested from Hitachi America, Ltd. Inasmuch as Hitachi America, Ltd., is the only source of supply for the parts required, nothing would be gained by advertising for bids (Section 11.4 of the Purchasing Act).
Hitachi America, Ltd., is registered and in good standing with the State of Illinois.
The Multi-Project Labor Agreement and Affirmative Action Ordinance, Revised Appendix D and Appendix V are 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 Hitachi America, Ltd., in an amount not to exceed $1,525,000.00.
Funds for purchase orders to be issued under this Board authority will be limited by pricing periods for Accounts 101-68000, 69000-623070, 623090, 623270. The estimated expenditures for the period of 7/1/2019 through 6/30/2020 are $225,000.00, 7/1/2020 through 6/30/2021 are $650,000.00, and 7/1/2021 through 6/30/2022 are $650,000.00. Funds for years 2020 and 2021 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:JK
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