TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 12, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to advertise Contract 10-641-11 Services to Furnish and Deliver Liquid Carbon Dioxide, and Maintain a Carbon Dioxide Storage Tank and Feed System at the Stickney Water Reclamation Plant, estimated cost $1,500,000.00, Account 101-69000-623560, Requisition 1307603
Body
Dear Sir:
Contract documents and specifications have been prepared for the procurement of services to furnish and deliver liquid carbon dioxide, and maintain a liquid carbon dioxide storage tank and feed system at the Stickney Water Reclamation Plant. Liquid carbon dioxide is injected into digested sludge to inhibit struvite formation in the centrifuges and associated piping. This sludge conditioning process helps to prevent blockages that cause excessive downtime. A reduction in the amount of downtime will increase operational efficiency and result in lower maintenance costs.
The estimated cost for the contract is $1,500,000.00. The estimated 2010, 2011, 2012 and 2013 expenditures are $10,000.00, $500,000.00, $500,000.00 and $490,000.00, respectively.
The bid deposit for this contract is $75,000.00.
The contract commences on or about November 15, 2010, and terminates on November 30, 2013, or upon expenditure of available funds, whichever occurs sooner. Liquidated damages are $250.00 per hour for each hour the contractor fails to make deliveries of liquid carbon dioxide after eight hours of being so ordered by the Engineer. Additionally, liquidated damages ranging from $50.00 to $250.00 are assessed for each instance that the contractor fails to meet various performance objectives, as specified in the contract documents.
The Multi-Project Labor Agreement (MPLA) is not applicable to this contract because it is primarily a furnish and deliver contract.
Revised Appendix D will not be included in this contract because it is primarily a furnish and deliver contract.
The tentative schedule for this contract is as follows:
Advertise August 18, 2010
Bid Opening September 14, 2010
Award October 21, 2010
Completion November 30, 2013
Funds for the current year are available in Account 101-69000-623560. Funds for subsequent years, 2011, 2012 and 2013, are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to advertise Contract 10-641-11.
Requested, Manju Prakash Sharma, Acting Director of Maintenance and Operations,
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 August 12, 2010