TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 18, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase purchase order and amend the agreement with Invensys Systems, Inc., to Provide Maintenance and Technical Support and Upgrade Existing Invensys I/A Service System at various locations in the Calumet Water Reclamation Plant Area, in an amount of $2,247,738.00, from an amount of $3,803,150.00, to an amount not to exceed $6,050,888.00, Accounts 401-50000-645700, 645750, Purchase Order 3047812
Body
Dear Sir:
On September 6, 2007, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with Invensys Systems, Inc., to provide maintenance and technical support, and upgrade the existing Invensys I/A Service System at various locations in the Calumet Water Reclamation Plant Area, in an amount not to exceed $3,803,150.00. The purchase order expires on December 31, 2010.
This contract has no prior change orders.
The increase in funds is being requested for replacement of the field bus modules (Cluster I/O), which are major components of the existing Distributed Control System (DCS) used for process control communications at the District. The “Cluster I/O” is obsolete and will no longer be supported after 2011. Invensys Systems, Inc. is currently offering an upgrade for the “Cluster I/O” which will replace the DCS control processors, work stations, the Local Area Networks (LAN), and also provide a software upgrade. The new equipment will have fewer components to maintain, thus reducing maintenance costs, and facilitate coordination with other current and future capital improvement projects at other departments in the District. Invensys Systems, Inc. is offering this “Advantage Upgrade” at a 10% discount, due to expire on March 31, 2010, and it would be in the District’s best interest to take advantage of their promotion. A time extension to the current contract will be required for completion of the upgrade.
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 increase the purchase order and amend the agreement, in an amount of $2,247,738.00 (approximately 59% of the original contract value), from an amount of $3,803,150.00, to an amount not to exceed $6,050,888.00. Authorization is also requested to extend the contract termination date from December 31, 2010 to December 31, 2011.
Funds are available in Accounts 401-50000-645700, 645750.
Requested, Kenneth A. Kits, Acting Director of Engineering and Osoth Jamjun, Director of Maintenance
and Operations, OJ:MPS:SO’C:MAG:LSC:IJA
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 March 18, 2010