TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 5, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to increase purchase order for Contract 06-418-11, Furnish and Deliver Thirty-Two (32) Multi-Functional Photocopier Devices and a Five Year Repair Service, Supplies and Maintenance Agreement at Various Locations, to Lanier Worldwide, Inc., in an amount of $12,180.00, from an amount of $400,571.87, to an amount not to exceed $412,751.87 Account 101-27000-612800, Purchase Order 3041665
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Dear Sir:
On November 16, 2006, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order for Contract 06-418-11, Furnish and Deliver Thirty-Two (32) Multi-Functional Photocopier Devices and a Five Year Repair Service, Supplies and Maintenance Agreement at Various Locations to Lanier Worldwide Inc., in an amount not to exceed $337,287.84. The contract expired on December 31, 2011.
As of June 21, 2007, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $63,284.03 from the original amount awarded of $337,287.84, as well as an increase in multifunctional photocopier devices from a total of 32 to a total of 37. The current contract value is $400,571.87. The prior approved change orders reflect an 18.8% increase to the original contract value.
The terms of the contract allow for a five-year service, supplies and maintenance agreement. The contract expired on December 31, 2011. The District exercised its "Option to Extend" services through March 31, 2012. Due to an organizational redirect, these multifunctional photocopier devices were not retired at the end of the five-year contract period. The 37 multifunctional photocopier devices purchased under this contract are still in service throughout the District and require continued maintenance, service and supplies. It is requested that the current contract be extended though December 31, 2012 at the rate of $12,180.00.
In addition, it should be noted that in 2001, Lanier Worldwide, Inc. merged with Ricoh Corporation but continued to operate separately. Effective April 1, 2007, the companies combined to become one company, Ricoh Americas Corporation. In 2008, IKON became a Ricoh Company. Effective January 2012, the two companies have aligned to a single brand under the umbrella of Ricoh as well. Effective April 1, 2012, all invoices and payments will be made to Ricoh USA.
This change order is in compliance with the Illinois Criminal Code since the change is due to circumstances not reasonably foreseeable at the time the contract was signed, and is in the best interest of the District.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a change order to increase the purchase order for Contract 06-418-11 in an amount of $12,180.00 (3% of the current contract value), from an amount of $400,571.87, to an amount not to exceed $412,751.87.
Funds for 2012 will be available in Account 101-27000-612800 pending Executive Director approval.
Requested, Dharani Villivalam, Acting Director of Information Technology, DV:CLG
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
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 April 5, 2012
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