TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 5, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to decrease purchase order and amend the agreement with Fox River Water Reclamation District, for Project 03-606-3P Replacement of Heat Exchangers at the Fox River Water Reclamation District's Main Plant, in an amount of $270,685.82, from an amount of $1,064,998.60, to an amount not to exceed $794,312.78, Account 101-50000-612490, Purchase Order 3023547
Body
Dear Sir:
On December 4, 2003, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with Fox River Water Reclamation District, for Project 03-606-3P Replacement of Heat Exchangers at the Fox River Water Reclamation District's Main Plant, in an amount not to exceed $1,064,998.60. The scheduled contract completion date is December 31, 2025.
This contract has no prior change orders.
The purchase order was originally awarded based upon construction cost estimates. District semi-annual payment amounts were based on a percentage of actual costs, resulting in lower overall District costs than expected.
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 the purchase order and amend the agreement in an amount of $270,685.82 (25.42% of the current contract value), from an amount of $1,064,998.60, to an amount not to exceed $794,312.78.
Funds will be restored to Account 101-50000-612490.
Requested, Kenneth A. Kits, Director of Engineering, JB:JJ
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