TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 21, 2020
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to increase Contract 16-901-31, Furnish, Deliver and Install Boiler Controls at the Stickney Water Reclamation Plant, to M.G. Electric Service Company, in an amount of $153,932.00, from an amount of $1,345,208.00, to an amount not to exceed $1,499,140.00, Account 401-50000-645650, Purchase Order 5001645
Body
Dear Sir:
On September 14, 2017, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 16-901-31, Furnish, Deliver and Install Boiler Controls at the Stickney Water Reclamation Plant, to M.G. Electric Service Company, in an amount not to exceed $1,224,000.00.
As of May 1, 2020, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $121,208.00 from the original amount awarded of $1,224,000.00. The current contract value is $1,345,208.00. The prior approved change orders reflect an approximate 9.9% increase to the original contract value.
MBE, WBE, and SBE utilization goals of 13%, 7%, and 10% are applicable to this contract. The utilization goals are also applicable to the change order.
This increase is necessary due to the need to modify the specified I/O in the control cabinets to integrate into the boilers’ local burner management systems, which resulted in additional I/O points and substitution of numerous I/O modules. In addition, the investigation and validation of the boilers’ ability to safely utilize a co-firing strategy of digester and natural gas with the OEM resulted in additional costs and delays in developing the boiler control software program and the manufacturing of the control cabinets. Finally, additional expenses were incurred due to delays in the boiler certification process that impacted the commissioning of the boiler controls.
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 increase Contract 16-901-31, in an amount of $153,932.00 (approximately 11.4% of the current contract value) from an amount of $1,345,208.00 to an amount not to exceed $1,499,140.00.
Funds are available in Account 401-50000-645650.
Requested, John P. Murray, Director of Maintenance & Operations, EJS:BK:MAG:JR:SSG
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 May 21, 2020
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