TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 12, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase purchase order to Drydon Equipment, Inc., to Furnish and Deliver Replacement Parts for Varec Gas Burners to the Stickney Water Reclamation Plant, in an amount of $106,000.00, from an amount of $68,051.69, to an amount not to exceed $174,051.69, Account 101-69000-623090, Purchase Order 3054754
Body
Dear Sir:
On December 4, 2008, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue purchase orders to Drydon Equipment, Inc., to furnish and deliver Replacement Parts for Varec Gas Burners to the Stickney Water Reclamation Plant, in an amount not to exceed $70,000.00. The contract expires on December 31, 2010.
As of July 22, 2010, the attached list of change orders has been approved. The effect of these change orders resulted in a decrease in an amount of $1,948.31 from the original amount awarded of $70,000.00. The current contract value is $68,051.69. The prior approved change orders reflect a 2.78% decrease to the original contract value.
An increase is being requested at this time to purchase 106 Varec Biogas 246 Series Drip Traps for the digester gas piping at the Stickney Water Reclamation Plant. These new drip traps are designed for the manual collection and safe removal of condensate from the gas piping systems. The existing water separators/traps utilize an internal float mechanism that automatically discharges accumulated moisture when a predetermined level has been reached. However, due to sediment and solids buildup within traps over time, the float mechanisms become jammed in the open position, resulting in the release of digester gas into the adjacent service and tunnel areas. Due to the safety concern, the existing design has been superseded with the manual removal of the condensate and all traps throughout the digester complex will be replaced. The sole source vendor, Drydon Equipment, Inc., has offered a 15% volume discount to accommodate the drip trap replacement.
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 in an amount of $106,000.00 (155.76% of the current total contract value), from an amount of $68,051.69, to an amount not to exceed $174,051.69.
Funds are available in Account 101-69000-623090.
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
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