TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 3, 2022
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order for Contract 21-652-12 (Re-Bid) Furnishing and Delivering Various Types of Manhole Covers, Frames, and Associated Miscellaneous Parts (Group A and Group B), to EJ USA, Inc., in an amount not to exceed $210,000.00, Account 101-66000-623300, Requisition 1554200 (As Revised)
Body
Dear Sir:
On August 5, 2021, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 21-652-11, Furnishing and Delivering Various Types of Manhole Covers, Frames, and Associated Miscellaneous Parts.
In response to a public advertisement of March 9, 2022, a bid opening was held on March 29, 2022. The bid was rejected at the May 5, 2022, Board Meeting as reported.
In response to a public re-advertisement of August 10, 2022, a bid opening was held on August 30, 2022. The bid tabulation for this contract is:
GROUP A
EJ USA, INC. $37,082.10
GROUP B
EJ USA, INC. $155,699.20
The Director of Procurement and Materials Management has reviewed the bidders’ list for this contract and is satisfied that the market for this service has been adequately solicited. A planholders’ survey revealed the following reason for not bidding: could not provide the products specified. In light of these findings, the Director of Procurement and Materials Management is of the opinion that the bid received is a fair and reasonable price, and nothing would be gained by rejecting the sole bid and re-advertising this contract.
The quantities specified in the contract documents were used for the purpose of comparing bids and establishing unit prices. The total amount to be expended on this contract, should usage differ from the quantities, is not to exceed $54,000.00 for Group A and $156,000.00 for Group B.
EJ USA, Inc., the sole bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost for this contract was $210,000.00, placing their bid of $192,781.30 approximately 8.1 percent below the estimate.
The Multi-Project Labor Agreement (MPLA) was not included in this contract because it is a furnish and deliver contract for materials.
The Affirmative Action Ordinance, Revised Appendix D applies only to construction contracts over a $100,000.00 threshold. These sections on page D-5 of the Ordinance address the types of covered contracts:
• Section 4, Coverage: The following provisions, to be known as "Appendix D" together with relevant forms shall apply and be appended to every construction contract awarded by the District where the estimated total expenditure is in excess of $100,000.00, except contracts let in the event of an emergency contract pursuant to 70 ILCS 2605/11.5."
• Section 5. Definitions: (g) "Construction contract" means any District contract or amendment thereto, providing for a total expenditure in excess on One Hundred Thousand Dollars ($100,000.00) for the construction, demolition, replacement, major repair or renovation and maintenance of real property and improvement thereon or sludge hauling and any other related contract which the District deems appropriate to be subject to Appendix D consistent with the Ordinance.
No bid deposit was required for this contract.
The contract shall commence five (5) calendar days following the issuance of a purchase order and terminate on December 31, 2024, or upon the expenditure of available funds, whichever occurs sooner.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order for Contract 21-652-12 (Re-Bid), Group A and Group B, to EJ USA, Inc. in an amount not to exceed $210,000.00.
Funds for the 2023 expenditures are being requested, in Account 101-66000-623300. The estimated expenditure for 2023 and 2024 are $70,000.00 and $140,000.00 for each year respectively and are contingent on the Board of Commissioners’ approval of the budget for those years.
Requested, John P. Murray, Director of Maintenance and Operations
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:bn
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 November 3, 2022