TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 5, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
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Authority to decrease Contract 99-467-2E Electrical Upgrade; Pumps, Motors and Drives Replacement, and Elevator Upgrades, Egan Water Reclamation Plant, to Divane Brothers Electric Company in an amount of $86,850.00, from an amount of $9,131,509.00, to an amount not to exceed $9,044,659.00, Account 401-50000-645750, Purchase Order 5000959
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Dear Sir:
On December 4, 2008, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 99-467-2E Electrical Upgrade; Pumps, Motors and Drives Replacement, and Elevator Upgrades, Egan Water Reclamation Plant (WRP), to Divane Brothers Electric Company, in an amount not to exceed $9,057,000.00. The scheduled contract completion date was December 10, 2010.
As of March 16, 2012, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $74,509.00 from the original amount awarded of $9,057,000.00. The current contract value is $9,131,509.00. The prior approved change orders reflect a 0.82% increase to the original contract value.
The contract includes replacement of six 4,160 volt, 500 horsepower motors for the raw sewage pumps at Egan WRP. The six motors have been built, tested, and found to have efficiencies lower than specified, which will cause an increase in the cost of operating the pumps. The unsolicited credit proposal is being offered by the contractor in lieu of providing motors that meet the specified efficiency and will off-set the projected additional operating costs over the next 25 years. As the motors supplied are otherwise acceptable and suitable for the application, and as the manufacture, installation, and testing of new motors will significantly delay the completion of the contract work, it is in the District's best interest to accept the proposed credit as compensation for accepting the supplied motors. The contractor submitted a cost proposal (CCO-014) for a credit in the amount of $86,850.00. The engineer reviewed the proposal, found it reasonable, and stated via correspondence 435, that the Engineering Department would recommend its approval.
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 decrease Contract 99-467-2E in an amount of $86,850.00 (0.95% of the current contract value), from an amount of $9,131,509.00, to an amount not to exceed $9,044,659.00.
Funds will be restored to Account 401-50000-645750.
Requested, Kenneth A. Kits, Director of Engineering, TEK:GG
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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