TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 18, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to decrease purchase order and amend agreement with Alfa Laval, Inc., to furnish and deliver a conveyor assembly for an Alfa Laval DS-706 Centrifuge and to provide services and parts for Alfa Laval centrifuges at various locations, in an amount of $241,596.86, from an amount of $7,671,215.00, to an amount not to exceed $7,429,618.14, Accounts 101-68000-612650/ 623270, Purchase Order 3056127
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Dear Sir:
On March 5, 2009, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue purchase orders and enter into an agreement with Alfa Laval, Inc., to furnish and deliver a conveyor assembly for an Alfa Laval DS-706 Centrifuge and to provide services and parts for Alfa Laval centrifuges at various locations, in an amount not to exceed $7,553,750.00. The purchase order expires on March 31, 2012.
As of February 5, 2010, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $117,465.00 from the original amount awarded of $7,553,750.00. The current contract value is $7,671,215.00. The prior approved change orders reflect a 1.56% increase to the original contract value.
A decrease is being requested at this time because the utilization of the contract in 2009 was less than originally anticipated. Funds in 2010 are also being eliminated due to the centrifuge facility shutdown as an appropriation control measure.
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 and amend agreement in an amount of $241,596.86 (approximately 3.15% of the current contract value), from an amount of $7,671,215.00, to an amount not to exceed $7,429,618.14.
Funds will be restored in Accounts 101-68000-612650/623270.
Requested, Osoth Jamjun, Director of Maintenance and Operations, OJ:MPS:SO’C:MAG:LSC:MW 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 18, 2010
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