TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 6, 2013
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to decrease Emergency Contract 12-600-01 to Repair Hydroelectric Generator #2 at the Lockport Powerhouse, to Resource International, in an amount of $13,453.00, from an amount of $48,900.00, to an amount not to exceed $35,447.00, Account 101-66000-623270, Purchase Order 3073353
Body
Dear Sir:
On July 6, 2012, a routine inspection found evidence of failed seals and the formation of a large crack in the cone of Generator #2 at the Lockport Powerhouse. The generator was taken out of service pending repair of the crack and replacement of the seals.
In accordance with Section 11.5 of the Purchasing Act, the Director of Maintenance and Operations declared a bonafide operating emergency and executed a contract with Resource International, to furnish and deliver parts and seals in an amount not to exceed $50,000.00. The preliminary estimated cost of the parts was $40,000.00. The Director of Procurement and Materials Management issued purchase order 3073353 to Resource International, in an amount of $40,000.00.
As of May 22, 2013, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $8,900.00 from the original amount awarded of $40,000.00. The current contract value is $48,900.00. The prior approved change orders reflect a 22.2% increase to the original contract value.
A decrease in the purchase order value is being requested because the work is completed, and to close-out the contract.
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 decrease the purchase order in an amount of $13,453.00 (approximately 27.5% of the current purchase order's value), from an amount of $48,900.00 to an amount not to exceed $35,447.00.
Funds will be restored to Account 101-66000-623270.
Requested, Manju Prakash Sharma, Director of Maintenance & Operations, SES:SO'C:MAG:SAF:TRS
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 June 6, 2013
Attachment