TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 6, 2025
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authorization to adopt a policy increasing the mandatory competitive bid threshold to $60,000.00 for all contracts in accordance with Section 11.3 of the Metropolitan Water Reclamation District Act
Body
Dear Sir:
Effective January 1, 2025, the Illinois General Assembly amended Section 11.3 of the Metropolitan Water Reclamation District Act, 70 ILCS 2605/11.3 (Section 11.3), increasing the Metropolitan Water Reclamation District of Greater Chicago’s mandatory competitive bid threshold to at least $60,000.00. This was one of the District’s 2024 legislative initiatives, and it is the first time since 2001 that the mandatory competitive bid threshold in Section 11.3 has been increased.
As amended, Section 11.3 now requires the District’s mandatory competitive bid threshold to be “a dollar amount equal to 0.1% of the total general fixed assets of the district as reported in the most recent required audit report. In no event, however, shall the mandatory competitive bid threshold dollar amount be less than $60,000.” Based on the 2023 Annual Comprehensive Financial Report, the mandatory competitive bid threshold must now be between $60,000.00 and approximately $1,622,768.00. Thus, the District must increase its current mandatory competitive bid thresholds from $25,000.00 for furnish and deliver contracts and $10,000.00 for service contracts to at least $60,000.00 for all contracts.
In addition to meeting its statutory obligation, the District will benefit from setting the minimum mandatory competitive bid threshold to $60,000.00 for all contracts. There will be a reduction in the number of contracts requiring formal advertisement and number of bid openings needed to process contracts under $60,000.00.
Therefore, it is recommended that the Board adopt a policy setting the District’s mandatory competitive bid threshold at $60,000.00 for all contracts. This is the minimum amount allowed by statute and the increase from the current mandatory competitive bid thresholds will allow the District to realize both administrative and cost benefits, and efficiencies.
Requested, Susan T. Morakalis, General Counsel, STM:nl
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for March 6, 2025