TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 17, 2011
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to decrease purchase order and amend the agreement with Life Insurance Company of North America, a subsidiary of CIGNA, to Provide Group Term Life Insurance for Metropolitan Water Reclamation District Employees for a Three-Year Period, in an amount of $26,444.21, from an amount of $291,888.00 to an amount not to exceed $265,443.79, Accounts 101-25000-601250, 201-50000-601250, 401-50000-601250, 501-50000-601250, Purchase Order 3052349
Body
Dear Sir:
On April 17, 2008, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement to Provide Group Term Life Insurance for Metropolitan Water Reclamation District Employees for a Three-Year Period with Life Insurance Company of North America, a subsidiary of CIGNA, in an amount not to exceed $291,888.00. The expiration date of the contract was June 30, 2011.
This contract has no prior change orders.
The purpose of this change order is to close the purchase order.
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 $26,444.21 (09.06% of the current contract value) from an amount of $291,888.00, to an amount not to exceed $265,443.79.
Funds will be restored to Accounts 101-25000-601250, 201-50000-601250, 401-50000-601250, and 501-50000-601250.
Requested, Denice E. Korcal, Director of Human Resources, DEK:GT
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 November 17, 2011