TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 1, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
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Authority to decrease purchase order and amend the agreement for Emergency Contract 08-900-05 Dewater, Inspect and Otherwise Recommission the Racine Avenue Pumping Station, to Divane Bros. Electric Co., in an amount of $266,005.72, from an amount of $1,510,000.00 to an amount not to exceed $1,243,994.28, Account 901-30000-667220, Purchase Order 5000924
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Dear Sir:
In accordance with Section 11.5 of the Purchasing Act, the Executive Director declared a bonafide operating emergency for services to Dewater, Inspect and Otherwise Recommission the Racine Avenue Pumping Station. The District entered into an Agreement with Divane Bros. Electric Co., in an amount not to exceed $25,000.00, in order to resolve this bonafide operating emergency. The emergency Contract 08-900-05 terminated on September 1, 2009.
As of March 12, 2010, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $1,485,000.00 from the original amount awarded of $25,000.00. The current contract value is $1,510,000.00. The prior approved change orders reflect a 5,940% increase to the original contract value.
A decrease in contract value is being requested at this time because the utilization of the contract services was less than originally anticipated.
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 the agreement in an amount of $266,005.72 (17.6% of the current contract value) from an amount of $1,510,000.00 to an amount not to exceed $1,243,994.28.
Funds will be restored in Account 901-30000-667220.
Requested, Osoth Jamjun, Director of Maintenance and Operations, OJ:MPS:SO'C:MAG:LSC:JK
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 April 1, 2010
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