TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 7, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
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Authority to decrease purchase order and amend the agreement with Dresser, Inc., to Provide Services and Parts for Centrifugal Blowers at the Calumet and North Side Water Reclamation Plants, in an amount of $31,199.99, from an amount of $206,482.00, to an amount not to exceed $175,282.01, Accounts 101-67000, 68000-612650, 623270, Purchase Order 3057569
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Dear Sir:
On May 7, 2009, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue purchase orders and enter into an agreement with Dresser, Inc., to provide services and parts for centrifugal blowers at the Calumet and North Side Water Reclamation Plants, in an amount not to exceed $215,000.00. The purchase orders expire on December 31, 2011.
As of September 22, 2010, the attached list of change orders has been approved. The effect of these change orders is a decrease in an amount of $8,518.00 to the original amount awarded of $215,000.00. The current contract value is $206,482.00. The prior approved change orders reflect a 4% decrease to the original contract value.
Due to budgetary constraints, use of services will be reduced in 2011, and funds will not be utilized. Non-critical maintenance and repair services have been deferred to a future date.
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 and amend the agreement in an amount of $31,199.99 (approximately 15.1% of the current contract value), from an amount of $206,482.00, to an amount not to exceed $175,282.01.
Funds will be restored in Account 101-67000-612650.
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 October 7, 2010
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