TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 21, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to decrease Contract 10-611-11 Repairs and Alterations to Various Water Reclamation Facilities in the Stickney Service Area and Other Installations, to Anchor Mechanical, Inc., in an amount of $2,410,000.00, from an amount of $5,735,000.00 to an amount not to exceed $3,325,000.00, Accounts 101-67000/69000-612600/612650, Purchase Orders 5001124 and 5001125 (Deferred from the October 7, 2010 Board Meeting) (As Revised)
Body
Dear Sir:
On April 1, 2010, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 10-611-11 Repairs and Alterations to Various Water Reclamation Facilities in the Stickney Service Area and Other Installations, to Anchor Mechanical, Inc., in an amount not to exceed $5,720,000.00. The contract expires on December 31, 2011.
As of September 20, 2010, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $15,000.00 from the original amount awarded of $5,720,000.00. The current contract value is $5,735,000.00. The prior approved change orders reflect a 0.26% increase to the original contract value.
A decrease in 2011 funds in the amount of $2,410,000.00 is being requested due to budgetary constraints. Due to this reduction, most of the work will be done by in-house trades. These services are necessary for processing of solids.
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 10-611-11, in an amount of $2,410,000.00 (approximately 42.02% of the current contract value) from an amount of $5,735,000.00 to an amount not to exceed $3,325,000.00.
Funds will be restored in Accounts 101-67000/69000-612600/612650. Funds are available in Account 101-66000-612520.
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 21, 2010.
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