TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 12, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to decrease purchase order to Flow-Technics, Inc., to Furnish and Deliver Allis-Chalmers, ITT Gould and Netzsch Replacement Pump Parts to the North Side, Egan, and Stickney Water Reclamation Plants, in an amount of $140,000.00, from an amount of $1,125,800.00, to an amount not to exceed $985,800.00, Account 101-69000-623270, Purchase Order 3061227
Body
Dear Sir:
On December 17, 2009, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue purchase orders to Flow-Technics, Inc., to furnish and deliver Allis- Chalmers, Gould and Netzsch replacement pump parts to the North Side, Egan, and Stickney Water Reclamation Plants, in an amount not to exceed $1,125,800.00. The contract expires on December 31, 2011.
This contract has no prior change orders.
A decrease is being requested at this time because the utilization of the contract in 2011 will be less than originally anticipated, as a result of the deferment of the purchase of two new pedestals for Allis-Chalmers Main Sewage Pumps at the Racine Avenue Pumping Station and due to budget constraints in the 2011 budget.
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 in an amount of $140,000.00 (12.44% of the current total contract value), from an amount of $1,125,800.00, to an amount not to exceed $985,800.00.
Requested, Manju Prakash Sharma, Acting Director of Maintenance and Operations, MPS:SO’C:MAG:LSC:MW
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