TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 3, 2018
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Issue purchase order and enter into an agreement with the Public Building Commission of Chicago to implement Energy Efficiency Projects at various locations, in an amount of $3,456,675.00, Account 401-50000-645680, Requisition 1492056
Body
Dear Sir:
On November 15, 2012, the Board of Commissioners authorized the District to enter into an Intergovernmental Agreement with the Public Building Commission of Chicago (PBC) to conduct an Energy Audit of all buildings and to participate in the Multi-Agency Guaranteed Energy Performance Contracting Program.
On March 6, 2014, the Board of Commissioners authorized the District to issue a purchase order and enter into an agreement with the PBC to conduct an Investment Grade Energy Audit, as part of the Intergovernmental Agreement. The Investment Grade Energy Audit was completed by Noresco, an Energy Service Company (ESCO) chosen by the District as best qualified for this task.
On February 18, 2016, the Board of Commissioners authorized the District to issue a purchase order and enter into an agreement with the PBC to implement various energy efficiency projects at the Stickney and Calumet Water Reclamation Plants. The scope of work included steam blanket insulation, HVAC control work and lighting upgrades at the storeroom of both plants. Work was completed in 2017 for the total amount of $4,250,000.00.
With the input and approval of the District as to terms and conditions, the PBC will enter into a contract directly with Noresco to implement the second tier of the Investment Grade Energy Audit report. The scope of this work includes installation of steam blanket insulation at the O’Brien and Egan Water Reclamation Plants, HVAC control upgrades at O’Brien, Kirie and Egan Water Reclamation Plants and upgrading the interior lighting with LED fixtures at O’Brien, Kirie, Egan and Hanover Park Water Reclamation Plants along with 14 remote sites. The cost of the work is $3,456,675.00.
It is estimated that the District will save approximately $220,759.00 annually, resulting in a simple payback of 15.7 years. In addition, the District anticipates receiving rebates from Nicor Gas and ComEd for natural gas and electrical energy reductions.
The Affirmative Action Ordinance, Revised Appendix D will be included. The type of work to be performed under the agreement is within the “Mechanical” category for establishing Minority-owned Business Enterprises (MBE), Women-owned Business Enterprises (WBE) and Small Business Enterprises (SBE) utilization goals. The WBE, MBE and SBE utilization goals for this contract are: 20% Minority Business Enterprises (MBE), 10% Women’s Business Enterprises (WBE) and 10% Small Business Enterprises (SBE).
It is recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to issue a purchase order and enter into agreement with the PBC in an amount not to exceed $3,456,675.00.
Funds are available in Account 401-50000-645680.
Requested, John P. Murray, Director of Maintenance and Operations, SS:PD:JL
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 3, 2018
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