TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 17, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to award Contract 10-004-11, Furnish and Deliver Structural and Stainless Steel to Various Locations for a One (1) Year Period, Group A to Napco Steel Inc., in an amount not to exceed $98,354.35, and to Super Roco Steel & Tube LTD II, for Group B, in an amount not to exceed $78,964.30, Account 101-20000-623030
Body
Dear Sir:
On March 18, 2010, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 10-004-11 furnish and deliver structural and stainless steel to various locations for a one (1) year period, beginning approximately July 1, 2010 and ending June 30, 2011.
In response to a public advertisement of April 14, 2010, a bid opening was held on May 4, 2010. The bid tabulation for this contract is:
GROUP A: STRUCTURAL
NAPCO STEEL INC. $98,354.35
SUPER ROCO STEEL & TUBE LTD II *$117,788.10
NORTHERN ILLINOIS STEEL SUPPLY $121,541.20
*corrected total
GROUP B: STAINLESS
SUPER ROCO STEEL & TUBE LTD II *$78,964.30
NAK-MAN CORPORATION *$87,475.58
NORTHERN ILLINOIS STEEL SUPPLY $104,251.90
*corrected total
Three hundred twenty six (326) companies were notified of the contract being advertised and fifteen (15) companies requested specifications.
Napco Steel Inc., the lowest responsible bidder for Group A, is proposing to perform the contract in accordance with the specifications. The estimated cost for Group A of this contract was $90,000.00, placing the total bid of $98,354.35 approximately 9.3 percent above the estimate.
Super Roco Steel & Tube LTD II, the lowest responsible bidder for Group B, is proposing to perform the contract in accordance with the specifications. The estimated cost for Group B of this contract was $40,000.00, placing the total bid of $78,964.30 approximately 97.4 percent above the estimate. Bids received for Group B were much higher than the estimate, however, stainless steel increased in price by 64 percent since April 2009, according to pricing data obtained from the MEPS LTD - Online Steel Prices.
The Multi-Project Labor Agreement (MPLA) is not applicable to this contract because it is primarily a furnish and deliver contract.
Revised Appendix D is not included in this contract because it is primarily a furnish and deliver contract.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 10-004-11, to Napco Steel Inc., in an amount not to exceed $98,354.35 for Group A, and to Super Roco Steel & Tube LTD II, in an amount not to exceed $78,964.30 for Group B.
Purchase orders will be issued when material is required. Payment will be based on the unit cost as indicated in the contract documents. The bid deposits, in the amounts of $4,500.00 for Group A and $2,000.00 for Group B, will be retained in lieu of a performance bond which is satisfactory to the Law
Department and approved by the Director of Procurement and Materials Management. Funds are available in Account 101-20000-623030.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:MB:dp
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 June 17, 2010