TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 20, 2022
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to award Contract 22-030-11, Furnish and Deliver Miscellaneous Lubricants to Various Locations for a One-Year Period, Items 1, 2, 4, 5, 6, 8, 9, 10, 15, 19, and 22 to Quimex, Inc., in an amount not to exceed $98,100.38; Items 3, 12, 13, 14, 16, 17, and 21 to Al Warren Oil Company, Inc., in an amount not to exceed $57,132.20; Items 7, 20, and 23 to Rilco, Inc., in an amount not to exceed $44,435.00; Item 11 to Feece Oil Company, in an amount not to exceed $2,244.00; and Item 18 to Chicago United Industries, Ltd., in an amount not to exceed $38,139.75, Account 101-20000-623860
Body
Dear Sir:
On August 11, 2022, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, contract 22-030-11 furnish and deliver miscellaneous lubricants to various locations for a one-year period, beginning approximately November 1, 2022 and ending October 31, 2023.
In response to a public advertisement of August 24, 2022, a bid opening was held on September 13, 2022. The bid tabulation for this contract is attached.
Quimex, Inc., the lowest bidder for Items 7, 16, and 23, and the second lowest bidder for item 20, proposed alternates for these items. The proposed alternates were reviewed by the Maintenance & Operations Department, and a recommendation was made not to accept the proposed alternates. The reason for not accepting the alternates is due to the lubricants being from different synthetic oil manufacturers, which can react with the existing oil in the equipment, thereby degrading the existing oil, and ultimately causing problems with the equipment. To change brands of synthetic oil would require thorough cleaning of the equipment that would use the proposed alternates. This cleaning would require the purchase of additional cleaning solvents, followed by disassembly, then cleaning and reassembly, and finally reinstallation of the equipment. The undertaking in terms of manpower, equipment down time, and cost would negate any savings if the proposed alternates were accepted. Examples of equipment that could be affected include various gear boxes for screen conveyors, preliminary tanks, aerated grit tanks, and final tanks at the O’ Brien plant. Therefore, Quimex, Inc.’s bid for these items is rejected in the public’s best interest. The Director of Procurement and Materials Management has notified Quimex, Inc. of this action.
The low bidder for Item 20, Feece Oil Company., proposed an alternate for this item. The proposed alternate was reviewed by the Maintenance & Operations Department, and a recommendation was made not to accept the proposed alternate. The reason for not accepting the alternate is due to the lubricant being from a different synthetic oil manufacturer, which can react with the existing oil in the equipment, thereby degrading the existing oil, and ultimately causing problems with the equipment. To change brands of synthetic oil would require thorough cleaning of the equipment that would use the proposed alternate. This cleaning would require the purchase of additional cleaning solvents, followed by disassembly, then cleaning and reassembly, and finally reinstallation of the equipment. The undertaking in terms of manpower, equipment down time, and cost would negate any savings if the proposed alternate was accepted. Examples of equipment that could be affected include various gear boxes for screen conveyors, preliminary tanks, aerated grit tanks, and final tanks at the O’ Brien plant. Therefore, Feece Oil Company’s bid for this item is rejected in the public’s best interest. The Director of Procurement and Materials Management has notified Feece Oil Company of this action.
Quimex, Inc., the lowest responsible bidder for items 1, 2, 4, 5, 6, 8, 9, 10, 15, 19, and 22, is proposing to perform the contract in accordance with the specifications. The estimated cost for items 1, 2, 4, 5, 6, 8, 9, 10, 15, 19, and 22 was $112,000.00, placing the total bid of $98,100.38 approximately 12.41 percent below the estimate.
Al Warren Oil Company, Inc, the lowest responsible bidder for items 3, 12, 13, 14, 16, 17, and 21, is proposing to perform the contract in accordance with the specifications. The estimated cost for items 3, 12, 13, 14, 16, 17, and 21 was $64,000.00, placing the total bid of $57,132.20 approximately 10.73 percent below the estimate.
Rilco, Inc., the lowest responsible bidder for items 7, 20, and 23, is proposing to perform the contract in accordance with the specifications. The estimated cost for items 7, 20, and 23 was $50,000.00, placing the total bid of $44,435.00 approximately 11.13 percent below the estimate.
Feece Oil Company, the lowest responsible bidder for item 11, is proposing to perform the contract in accordance with the specifications. The estimated cost for item 11 was $2,000.00, placing the total bid of $2,244.00 approximately 12.20 percent above the estimate.
Chicago United Industries, Ltd., the lowest responsible bidder for item 18, is proposing to perform the contract in accordance with the specifications. The estimated cost for item 18 was $53,000.00, placing the total bid of $38,139.75 approximately 28.04 percent below the estimate.
The Multi-Project Labor Agreement (MPLA) is not applicable to this contract because it is primarily a furnish and deliver contract.
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.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 22-030-11, Furnish and Deliver Miscellaneous Lubricants to Various Locations for a One-Year Period, Items 1, 2, 4, 5, 6, 8, 9, 10, 15, 19, and 22 to Quimex, Inc., in an amount not to exceed $98,100.38; Items 3, 12, 13, 14, 16, 17, and 21 to Al Warren Oil Company, Inc., in an amount not to exceed $57,132.20; Items 7, 20, and 23 to Rilco, Inc., in an amount not to exceed $44,435.00; Item 11 to Feece Oil Company, in an amount not to exceed $2,244.00; and Item 18 to Chicago United Industries, Ltd., in an amount not to exceed $38,139.75.
No bid deposit was required for this contract.
Purchase orders will be issued for the material as required. Payment will be based on the unit cost as indicated in the contract documents. There was no bid deposit required for this contract. Funds are available in Account 101-20000-623860.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:MS:sk
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 October 20, 2022
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