TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 19, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Issue purchase order and enter into an agreement for Contract 08-RFP-18 to Provide Professional Auditing Services of Construction Contracts with McGovern & Greene LLP, in an amount not to exceed $69,925.00, Account 101-50000-601170, Requisition 1246674
Body
Dear Sir:
Authorization is requested to issue a purchase order and enter into an agreement with McGovern & Greene LLP for the audit of two separate construction contracts. The construction contracts to be audited are as follows:
Project A: the design and build costs incurred by MBM, LLC. (MBM) for the Biosolids Processing Facility at the Stickney Water Reclamation Plant (SWRP) associated with 98-RFP-10 (Agreement A)
Project B: the Construction Costs of IHC Construction Companies, LLC (IHC) for the Repair of Service Tunnels A-B and C-D at SWRP associated with 06-153-9D (Agreement B).
Project A is requested to fulfill the contract requirements of Section 9.15 of 98-RFP-10. Agreement A provides “The total overhead and profit for the design and build cost of the Facility shall not exceed 15% of the actual direct design and build cost as determined by a District audit”.
Project B is permissible under Article 9 of the General Conditions for District Engineering contracts. The work was paid for on a Time and Material basis, which includes the actual cost of labor, material, subcontractor expense, transport of equipment and rental equipment. Additionally, recalculation of the interest payments related to the agreement will be required.
The Request for Proposal 08-RFP-18 was advertised on April 23, 2008. One hundred forty three firms were notified and twenty five firms requested proposal documents. Five acceptable proposals were received on May 16, 2008 from Hill Taylor LLC; Virchow Krause & Company, LLP; Jefferson Wells International, Inc.; McGovern & Greene, LLP; and Clifton Gunderson, LLP.
An evaluation committee of employees from Engineering, Maintenance and Operations, Finance and Purchasing evaluated the proposals for the technical sufficiency based on evaluation criteria detailed in the RFP. Interviews were then held with all five proposers and the Best and Final Offers were requested from those firms.
Based on the evaluation of the proposals, the interviews, and the Best and Final Offers, the Evaluation Committee recommended that a contract be awarded to McGovern & Greene, LLP. The professional qualifications, audit approach, audit team, and cost proposal from McGovern & Greene, LLP resulted in this firm being ranked number one.
The estimated completion date is August 15, 2008. For Project A, McGovern & Greene will submit a report on the actual costs incurred by MBM for the design and construction of the Biosolids Facility. This report should verify whether the design and build costs of MBM are equal to or greater than the estimated cost contained in Agreement A of $54,535,000 or if the total design and build costs are lower than the estimate. Following the completion of Project B, they shall issue a report verifying that all expenses charged to the District are allowable costs as defined by Agreement B. In addition, a second report for Project B is requested with the interest calculation due to IHC in connection with the Illinois Prompt Payment Act.
McGovern & Greene submitted a total estimate of 355 man hours to complete this project at an average estimated hourly billing rate of $200.
In view of the foregoing it is requested that the Purchasing Agent be authorized to issue a purchase order and enter into an agreement with McGovern & Greene, LLP in an amount not to exceed $69,925.00.
Funds are available in Account 101-50000-601170.
Requested, Jacqueline Torres, Director of Finance/Clerk, JT:EH:lt
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 June 19, 2008. Approved, President Terrence J. O’Brien