TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 7, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to decrease purchase order and amend the agreement with Emerson Process Management Power & Water Solutions, Inc., in accordance with Agreement Number 2/2000, Revision 2, for system engineer services for the distributed control system at the Egan, Kirie and Hanover Park Water Reclamation Plants, in an amount of $99,935.37, from an amount of $793,300.00, to an amount not to exceed $693,364.63, Account 101-67000-612650, Purchase Order 3054698
Body
Dear Sir:
On November 20, 2008, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order to Emerson Process Management Power & Water Solutions, Inc., in accordance with Agreement Number 2/2000, Revision 2, for system engineer services for the distributed control system at the Egan, Kirie and Hanover Park Water Reclamation Plants, in an amount not to exceed $793,300.00. The contract expires on May 31, 2011.
This contract has no prior change orders.
A decrease is being requested at this time due to constraints in the 2011 budget. Currently, one system engineer provides 5 days x 8 hours per day = 40 hours of DCS support services per week. Beginning June 1, 2011, the contractor’s system engineer will be on-site to provide DCS support services only 2 days per week, or will be called in on an as-needed basis. The support services will instead be provided by an Associate Process Control Engineer, who is the District’s employee.
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 $99,935.37 (12.6% of the current contract value), from an amount of $793,300.00, to an amount not to exceed $693,364.63.
Funds will be restored in Account 101-67000-612650.
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 October 7, 2010