TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 6, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Authorization to increase cost estimate for Contract 08-613-12, Scavenger Services at Various Locations, in the amount of $65,800.00, from $4,088,800.00 to $4,154,600.00, Accounts 101-69000, 68000, 67000, 66000-612520 (Reqs. 1221308, 1218974, 1220821, 1221855, 1221898, 1221322, 1221871)
Body
Dear Sir,
Authority to advertise Contract 08-613-11 was approved at the Board Meeting of September 20, 2007, for an estimated cost of $4,088,800.00. The Contract was advertised on October 24, 2007, and bids were opened on November 20, 2007. Two bids each were received for Groups E, F and G of the Contract [representing the Kirie Water Reclamation Plant (KWRP), the Hanover Park Water Reclamation Plant (HPWRP), and the Lockport Powerhouse (LPH), respectively]. For Group E, the lowest bid received was $396,672.50, while the original estimate was $225,000.00; for Group F, the lowest bid was $71,280.00, while the original estimate was $46,200.00; and for Group G, the lowest bid was $65,484.00, while the original estimate was $21,000.00.
Since the bids for each Group were significantly higher than their original estimates, the bids were all rejected, and a report on their rejection was submitted by the Purchasing Agent at the Board Meeting of February 7, 2008.
Upon review of the bids, it was determined that the cost of carting and disposing of refuse was underestimated. This is due to unanticipated increases in fuel costs between the time of preparing the original estimates and the time bids were received. In addition, the frequency of disposal of filled containers was slightly underestimated. Inclusion of these additional costs has resulted in revised estimates of $265,000.00, $60,000.00 and $33,000.00 for the KWRP, HPWRP and LPH portions of the Contract, respectively.
Authorization is therefore requested to increase the cost estimates for the three Groups as follows:
Group E: to be increased by $40,000.00 (approximately 18% of the original estimate), from an amount not to exceed $225,000.00 to an amount not to exceed $265,000.00;
Group F: to be increased by $13,800.00 (approximately 30% of the original estimate), from an amount not to exceed $46,200.00 to an amount not to exceed $60,000.00;
Group G: to be increased by $12,000.00 (approximately 57% of the original estimate), from an amount not to exceed $21,000.00 to an amount not to exceed $33,000.00.
The total increase of the estimates for the three Groups combined is $65,800.00. The total estimated Contract value will be increased from an amount not to exceed $4,088,800.00 to an amount not to exceed $4,154,600.00.
Funds for these increases are available in Accounts 101-67000, 66000-612520.
Requested, Osoth Jamjun, Chief of Maintenance and Operations, MPS:SO’C:MAG:IJA
Recommended, Darlene A. LoCascio, Purchasing Agent
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Purchasing
ORDERED passed by affirmative roll call vote of a majority of the Commissioners present this March 6, 2008. Approved, President Terrence J. O’Brien