TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 12, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to award Contract 10-849-11, Repair of Heavy Equipment at the Calumet Water Reclamation Plant and Calumet Solids Management Area, to Patten Industries, Inc., in an amount not to exceed $270,000.00, Accounts 101-66000, 68000-612760, Requisitions 1293673 and 1287538
Body
Dear Sir:
On April 1, 2010, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 10-849-11, Repair of Heavy Equipment at the Calumet Water Reclamation Plant and Calumet Solids Management Area.
In response to a public advertisement of April 21, 2010, a bid opening was held on May 25, 2010. The bid tabulation for this contract is:
PATTEN INDUSTRIES, INC. $217,245.84
One hundred eighty-six (186) companies were notified of this contract being advertised and nine (9) companies requested specifications.
The Director of Procurement and Materials Management has reviewed the bidders’ list for this contract, and is satisfied that the market for this service has been adequately solicited. A planholders’ survey revealed the following reasons for not bidding: scope of work to repair various equipment was too broad, and was not a Caterpillar dealer for repair. In light of these findings, the Director of Procurement and Materials Management is of the opinion that the bid received is a fair and reasonable price, and nothing would be gained by rejecting the sole bid and re-advertising this contract.
The quantities specified in the contract documents were used for the purpose of comparing bids and establishing unit prices. The total amount to be expended on this contract, should usage differ from the quantities, is not to exceed $270,000.00.
Patten Industries, Inc., the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications.
The estimated cost for this contract was $270,000.00, placing the bid of $217,245.84, approximately 19.5 percent below the estimate.
Patten Industries, Inc., is in compliance with the Revised Appendix D, as indicated on the attached report. The protected class utilization for this contract is 13 percent Minority Business Enterprise (MBE), 7 percent Women Business Enterprise (WBE), and the bidder offers MBE credits to satisfy the Small Business Enterprise (SBE) goals.
Patten Industries, Inc. has executed the Multi-Project Labor Agreement (MPLA) certificate, as required. The construction trades that are anticipated to be used on this contract are: operating engineers. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 10-849-11 to Patten Industries, Inc., in an amount not to exceed $270,000.00, subject to the contractor furnishing a performance bond in form satisfactory to the Law Department and approved by the Director of Procurement and Materials Management.
Funds for the 2010 expenditure, in the amount of $42,000.00, are available in Accounts 101-66000, 68000-612760. The estimated expenditure for 2011 is $90,000.00, for 2012 is $90,000.00, and for 2013 is $48,000.00. Funds for the 2011, 2012, and 2013 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:klv
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
Attachment