TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 4, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to decrease purchase orders and amend the agreement with Siemens Building Technologies, Inc., for Maintenance and Repair Services for the Fire Alarm System at the Mainstream Pumping Station, HVAC Equipment at the Office, Shop and Storage Complex at the Stickney Water Reclamation Plant, and HVAC Equipment at the R&D Laboratory at the Calumet Water Reclamation Plant, in an amount of $69,419.53, from an amount of $637,836.00, to an amount not to exceed $568,416.47, Accounts 101-68000, 69000-612680, Purchase Orders 3050996, 3050997
Body
Dear Sir:
On January 3, 2008, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue purchase orders and enter into an agreement with Siemens Building Technologies, Inc., for maintenance and repair services for the fire alarm system at the Mainstream Pumping Station, HVAC equipment at the Office, Shop and Storage Complex at the Stickney Water Reclamation Plant, and HVAC equipment at the R&D Laboratory at the Calumet Water Reclamation Plant, in an amount not to exceed $674,016.00. The purchase orders expire on December 31, 2010.
As of January 19, 2010, the attached list of change orders has been approved. The effect of these change orders resulted in a decrease in an amount of $36,180.00 from the original amount awarded of $674,016.00. The current total purchase orders’ value is $637,836.00. The prior approved change order reflects an approximate 5.4% decrease to the original total purchase orders’ value.
The need for the decrease is due to a less than anticipated need for services in 2009 at the Stickney Water Reclamation Plant, and a delay in construction in 2009 of the new laboratory at the Calumet Water Reclamation Plant.
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 decrease the purchase orders and amend the agreement in an amount of $69,419.53 (approximately 10.9% of the current purchase orders’ value), from an amount of $637,836.00, to an amount not to exceed $568,416.47.
The total decrease for this contract is an amount of $105,599.53 (approximately 15.7% of the original contract value) from an amount of $674,016.00 to an amount not to exceed $568,416.47.
Funds will be restored in Accounts 101-68000, 69000-612680.
Requested, Osoth Jamjun, Director of Maintenance and Operations, OJ:MPS:SO’C:MAG:LSC: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 February 4, 2010
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