TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 4, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to decrease purchase order, amend agreement and change funding with ABB, Inc. to Furnish and Deliver Parts and Services to upgrade the ABB Distributed Control System Equipment at the North Side Water Reclamation Plant, in an amount of $64,140.40, from an amount of $3,303,340.00, to an amount not to exceed $3,239,199.60, Accounts 101-67000-612600/612650, 401-50000-645650, Purchase Order 3045980
Body
Dear Sir:
On July 12, 2007, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with ABB, Inc., to furnish and deliver parts and services to upgrade the ABB Distributed Control System Equipment at the North Side Water Reclamation Plant, in an amount not to exceed $3,303,340.00. The contract expires on December 31, 2011.
This contract has no prior change orders.
A decrease in 2010 funds is being requested at this time because utilization of the contract in 2010 was less than originally anticipated. 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.
A change in source funding for 2011 is being requested because it has since been determined that the work being performed is eligible for funding under the Capital Improvement Bond Fund since the existing District assets have reached the end of their useful lives and will have to be replaced.
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 $64,140.40 (approximately 1.94% of the current contract value), from an amount of $3,303,340.00, to an amount not to exceed $3,239,199.60.
In view of the foregoing, authority is requested to change the source funding for the 2011 portion of the Purchase Order 3045980, Furnish and Deliver Parts and Services to Upgrade the ABB Distributed Control System Equipment at the North Side Water Reclamation Plant, from Account 101-67000-612650 to Account 401-50000-645650.
Funds will be restored in Account 101-67000-612650.
Requested, Manju Prakash Sharma, Director of Maintenance and Operations, 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 November 4, 2010