TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 3, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Issue purchase orders and enter into an agreement with Alfa-Laval, Inc., to Rehabilitate Thickening & Dewatering Centrifuge Rotating Assemblies and to Furnish and Deliver Parts for Alfa-Laval Centrifuges for the Stickney and Egan Water Reclamation Plants for a three-year period in an amount not to exceed $6,530,335.00, Accounts 101, 201-50000, 67000, 69000-612650, 623070, 623270, 645750 Requisitions 1339621, 1337533 and 1337534
Body
Dear Sir:
A request for authority to add Project 12-920-21, to Rehabilitate Dewatering Centrifuge Rotating Assemblies to the Construction Fund amount of $3,680,000.00, at the request of the Maintenance and Operations Department has been submitted for this Board Meeting under a separate submittal. As a result, authorization is requested to issue purchase orders and enter into an agreement with Alfa-Laval, Inc., to rehabilitate thickening & dewatering centrifuge rotating assemblies and to furnish and deliver parts for Alfa-Laval centrifuges for the Stickney and Egan Water Reclamation Plants for Alfa-Laval centrifuges for a three-year period. These purchase orders will expire March 31, 2015.
Alfa-Laval, Inc., the manufacturer and sole source distributor of replacement parts for Alfa-Laval centrifuges, has submitted prices for the parts and services required. Inasmuch as Alfa-Laval, Inc., is the only source of supply for the parts required, nothing would be gained by advertising for bids (Section 11.4 of the Purchasing Act). Each year Alfa-Laval, Inc., will provide one-year pricing for parts to the M&O Department. The current pricing schedule for parts is effective from April 1, 2012 through March 31, 2013.
Alfa-Laval, Inc., is registered and in good standing with the State of Illinois. The parts are manufactured or assembled in the United States.
The Multi-Project Labor Agreement is not applicable since all work will be done by certified/trained field technicians of Alfa-Laval, Inc. If trade work is required, in-house District trades will perform the work.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue purchase orders and enter into an agreement with Alfa-Laval, Inc., in an amount not to exceed $6,530,335.00.
Funds for the 2012 expenditure, in the amount of $1,725,335.00, are available in Accounts 101, 201-50000, 67000, 69000-612650, 623070, 623270, 645750. The estimated expenditures for 2013 is $1,990,000.00, for 2014 is $2,380,000.00, and for 2015 is $435,000.00. Funds for the 2013, 2014, and 2015 expenditures are contingent on the Board of Commissioners' approval of the District's budget for those years.
Requested, Manju Prakash Sharma, Director of Maintenance and Operations
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:JN:bk
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 May 3, 2012