TRANSMITTAL LETTER FOR BOARD MEETING MARCH 5, 2026
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Executive Director
Title
Authorization to exercise an option to extend and amend agreement or administer a reverse auction to procure natural gas under Contract 23-RFP-02, Procurement of Natural Gas Services, for up to 36 months, subject to obtaining pricing that is favorable to the District
Body
Dear Sir:
It is requested that the Board of Commissioners authorize the Director of Procurement and Materials Management to procure natural gas at favorable market rates for a term of up to 36 months, beginning August 1, 2026.
The District has options for procurement of natural gas. One option is to accept extension pricing from the current supplier. On June 26, 2024, the District conducted a reverse auction to procure natural gas for a 24-month period starting August 1, 2024, with an option to extend the agreement for up to five additional years. Under an extension, only the contract price and termination date may change. This approach enables the District to take advantage of market price dips, but doing so requires accepting favorable pricing within hours of receiving an offer.
Alternatively, the other option is the District may conduct a new auction to solicit pricing from pre approved suppliers. This auction would request bids for 12, 24, and 36 month delivery terms. Suppliers would be permitted to submit and revise pricing until the close of each auction segment. After the auction closes, suppliers must hold their prices for a designated period (e.g., three hours) to allow the District sufficient time to evaluate and compare all offers.
The extension of the termination date is in compliance with the Illinois Criminal Code because it is germane to the original agreement as signed and is in the best interest of the District.
Appendix A and Appendix V were not included in Contract 23-RFP-02 due to the scope of work performed under this RFP which provides no sub-contracting opportunities.
Due to the limited time available to accept pricing, authorization is requested for the Board of Commissioners to permit the Director of Procurement and Materials Management to utilize either procurement option to secure natural gas for a term of up to 36 months beginning August 1, 2026. This authorization shall remain in effect through December 31, 2027.
A report will be submitted to the Board of Commissioners after procurement of natural gas is completed.
Requested, Pinakin V. Desai, Acting Director of Maintenance and Operations, JBS:BML:MM:AC:MFM
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for March 5, 2026