TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 1, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase purchase order and amend the agreement with Dresser-Rand Company, for repair services and replacement parts for the Dresser-Clark Centrifugal Compressor System (Blowers), in an amount of $320,000.00, from an amount of $453,000.00 to an amount not to exceed $773,000.00, Account 101-69000-612650, Purchase Order 3050096 (As Revised)
Body
Dear Sir:
On March 20, 2008, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with Dresser-Rand Company, to provide repair services and replacement parts for the Dresser-Clark centrifugal compressor system (blowers), in an amount not to exceed $193,000.00. The contract expires on December 31, 2010.
As of March 18, 2010, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $260,000.00 from the original amount awarded of $193,000.00. The current contract value is $453,000.00. The prior approved change order reflects a 134.7% increase to the original contract value.
The increase is needed to overhaul Blower No. 6 at the Stickney Water Reclamation Plant, as part of a major overhaul cycle for the four large process blowers at the Pump and Blower House started in 2008. A time extension is required until December 31, 2011, to complete the overhaul on Blower No. 6.
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 $320,000.00 (approximately 70.6% of the current purchase order’s value), from an amount of $453,000.00 to an amount not to exceed $773,000.00. The Director of Maintenance and Operations has extended the scheduled completion date from December 31, 2010, to December 31, 2011.
Funds are available in Account 101-69000-612650.
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 April 1, 2010
Attachment