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 the agreement with Siemens Energy and Automation, Inc., for providing preventive maintenance services for the TARP raw sewage pump variable frequency Robicon drives at the Calumet Water Reclamation Plant, in an amount of $15,895.02, from an amount of $83,405.22, to an amount not to exceed $67,510.20, Accounts 101-68000-612600, 612650, Purchase Order 3047336
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Dear Sir:
On May 3, 2007, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with Siemens Energy & Automation, Inc., to provide preventive maintenance services for the TARP raw sewage pump variable frequency Robicon drives at the Calumet Water Reclamation Plant, in an amount not to exceed $150,000.00. The purchase order expired on December 31, 2009.
As of February 5, 2010, the attached list of change orders has been approved. The effect of these change orders resulted in a decrease in an amount of $66,594.78 from the original amount awarded of $150,000.00. The current total purchase order’s value is $83,405.22. The prior approved change orders reflect an approximate 44.4% decrease to the original total purchase order’s value.
The need for the decrease is due to a less than anticipated need for preventive maintenance services for the TARP raw sewage pump variable frequency Robicon drives at the Calumet Water Reclamation Plant in 2009.
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 order and amend the agreement in an amount of $15,895.02 (approximately 19.1% of the current purchase order’s value), from an amount of $83,405.22, to an amount not to exceed $67,510.20.
Funds will be restored in Accounts 101-68000-612600, 612650.
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 18, 2010
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