TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 7, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to decrease Contract 10-694-11, Truck Hauling of Direct Haul Centrifuge Cake from the Stickney Water Reclamation Plant to Various Locations, to Big “O” Movers and Storage, Inc., in an amount of $250,000.00, from an amount of $700,000.00, to an amount not to exceed $450,000.00, Account 101-66000-612520, Purchase Order 5001130
Body
Dear Sir:
On April 15, 2010, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 10-694-11, Truck Hauling of Direct Haul Centrifuge Cake from the Stickney Water Reclamation Plant to Various Locations, to Big “O” Movers and Storage, Inc., in an amount not to exceed $700,000.00. The contract expires on December 31, 2011.
This contract has no prior change orders.
The contract value for 2011 will be reduced because the quantity of centrifuge cake to be hauled from the Stickney WRP to various locations will be reduced. This is as a result of the pelletizer coming online on a full-time basis in 2011, and the reduced costs achieved by handling the biosolids through low-solids processing rather than through the centrifuges.
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 Contract 10-694-11 in an amount of $250,000.00 (approximately 35.7% of the current contract value), from an amount of $700,000.00, to an amount not to exceed $450,000.00.
Funds will be restored in Account 101-66000-612520.
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