TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 8, 2013
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to increase purchase order and amend the agreement with Siemens Industry, Inc., to Provide Parts and Services to Maintain the Siemens HVAC Equipment at the OSS Complex at the Stickney Water Reclamation Plant and the Monitoring and Research Laboratory at the Calumet Water Reclamation Plant, in an amount of $75,000.00, from an amount of $442,446.94, to an amount not to exceed $517,446.94, Accounts 101-68000/69000-612680, Purchase Order 3067267
Body
Dear Sir:
On January 6, 2011, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue purchase orders and enter into an agreement with Siemens Industry, Inc., to provide parts and services to maintain the Siemens HVAC equipment at the OSS Complex at the Stickney Water Reclamation Plant and the Monitoring and Research Laboratory at the Calumet Water Reclamation Plant, in an amount not to exceed $505,000.00. The purchase orders expire on December 31, 2013.
As of July 10, 2013, the attached list of change orders has been approved. The effect of these change orders resulted in a decrease in an amount of $62,553.06 from the original amount awarded of $505,000.00. The current contract value is $442,446.94. The prior approved change order reflects an approximate 12.4% decrease to the original contract value.
An increase in the purchase order's value is being requested to replace four Modular Building Control (MBC) cabinets in the HVAC system in the OSS complex at the Stickney Water Reclamation Plant in 2013. These four MBC's, of the 23 total in the OSS Complex, have the highest number of leaking Air Operated Pneumatic Modules (AOPM's). As such, it is cheaper to replace the entire MBC, than to replace the leaking AOPM's. Funding for this increase is being provided by the 201 Construction Fund.
This change order is in compliance with the Illinois Criminal Code since these changes are due to circumstances not reasonably foreseeable at the time the purchase orders were issued, 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 and amend the agreement in an amount of $75,000.00 (approximately 17.0% of the current purchase orders' value), from an amount of $442,446.94, to an amount not to exceed $517,446.94.
Funds are available in Account 201-50000-645750.
Requested, Manju Prakash Sharma, Director of Maintenance & Operations, SES:SO'C:MAG:SAF: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 August 8, 2013
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