TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 3, 2013
COMMITTEE ON Procurement
Mr. David St. Pierre, Executive Director
Title
Authority to increase purchase order and amend the agreement with Beveridge & Diamond, P.C. to represent the District in the case of Natural Resources Defense Council, Inc. et al. v. Metropolitan Water Reclamation District of Greater Chicago, Case No. 11-CV-2937, in an amount of $300,000.00, from an amount of $1,300,000.00, to an amount not to exceed $1,600,000.00, Account 101-30000-601170, Purchase Order 3069593
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Dear Sir:
On June 16, 2011, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with Beveridge & Diamond, P.C. for legal services, in an amount not to exceed $350,000.00. The contract has no expiration date.
As of October 3, 2013, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $950,000.00 from the original amount awarded of $350,000.00. The current contract value is $1,300,000.00. The prior approved change orders reflect a 271% increase to the original contract value.
The reason for the change order is that extended settlement negotiations were unsuccessful and the parties are in the middle of significant fact discovery and heading to trial. Under the terms of the agreement with Beveridge & Diamond, P.C., the District pays the firm a monthly fee of $75,000.00. Every six months, a "true up" is conducted. If the fees paid by the District for any 6-month period exceed the amount billed by Beveridge & Diamond, the District receives a credit for the difference. If the amount billed exceeds the amount paid by the District, Beveridge & Diamond writes-off the difference. Currently, the District has a credit balance on this purchase order, which will be exhausted before the end of 2013.
This change order is in compliance with the Illinois Criminal Code because the change is germane to the original agreement as signed and 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 and amend the agreement in an amount of $300,000.00 (approximately 23% of the current contract value) from an amount of $1,300,000.00 to an amount not to exceed $1,600,000.00.
Funds in the amount of $35,000.00 are available in 2013 in Account 101-30000-601170. The estimated expenditure for 2014 is $265,000.00. Funds for 2014 are contingent on the Board of Commissioners' approval of the District's budget for that year.
Requested, Ronald M. Hill, General Counsel, RMH:LLD:EMA:crb
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 October 3, 2013
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