TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 21, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to award Contract 10-927-13 (Re-Bid), Services to Repair and Maintain Variable Frequency Drives in the Stickney Service Area, to Dreisilker Electric Motors, Inc., in an amount not to exceed $90,000.00, Account 101-69000-612650, Requisition 1295113
Body
Dear Sir:
On March 18, 2010, the Board of Commissioners passed an order directing the Director of Procurement and Materials Management to advertise for bids for Contract 10-927-11 Services to Repair and Maintain Variable Frequency Drives in the Stickney Service Area.
In response to a public advertisement of April 21, 2010, a bid opening was held on May 11, 2010. All bids were rejected as reported at the July 8, 2010 Board meeting.
In response to a public re-advertisement of July 14, 2010, a bid opening was held on August 3, 2010. No bids were received for this contract.
In response to a public re-advertisement of September 8, 2010, a bid opening was held on September 28, 2010. The bid tabulation for this contract is:
DREISILKER ELECTRIC MOTORS, INC. $68,372.00
Four hundred fifty-four (454) companies were notified of this contract being advertised and fifteen (15) 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: could not meet the specs and bid deposit was too large. 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 $90,000.00.
Dreisilker Electric Motors, Inc., the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications.
The estimated cost for this contract was $90,000.00, placing the bid of $68,372.00, approximately 24 percent below the estimate.
The revised Appendix D was not included in this contract because the estimate is less than the minimum threshold established by Section 4 of the Affirmative Action Ordinance.
The Multi-Project Labor Agreement (MPLA) was not included in this contract because the work involves, specifically, the repair and maintenance of ABB and Cutler-Hammer VFDs. This work can only be performed by these manufacturers’ engineers, or by other specially trained technicians who are certified in the servicing of the manufacturers’ equipment. If any trade work is required within District premises, it will be performed by in-house labor forces.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 10-927-13 (Re-Bid), to Dreisilker Electric Motors, Inc., in an amount not to exceed $90,000.00, 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 expenditures in the amount of $30,000.00 are available in Account 101-69000-612650. The estimated expenditures for 2011 is $30,000.00, and for 2012 is $30,000.00. Funds for the 2011 and 2012 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 October 21, 2010