TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 16, 2022
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order for Contract 22-632-11, Furnishing and Delivering Sodium Hypochlorite, to Rowell Chemical Corporation, in an amount not to exceed $1,287,675.70, Accounts 101-67000, 68000, 69000-623560, Requisitions 1580060, 1580381, and 1580168
Body
Dear Sir:
On May 5, 2022, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 22-632-11, Furnishing and Delivering Sodium Hypochlorite.
In response to a public advertisement of May 11, 2022, a bid opening was held on May 24, 2022. The bid tabulation for this contract is:
ROWELL CHEMICAL CORPORATION $1,287,675.70
ALEXANDER CHEMICAL CORPORATION $1,546,047.04
Rowell Chemical Corporation, the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost for this contract was $1,155,314.00, placing their bid of $1,287,675.70 approximately 11.5 percent above the estimate. A reason for the bid being over the estimate cost is due to the extreme volatility in the current sodium hypochlorite market caused by chemical plant production and supply issues.
The Multi-Project Labor Agreement (MPLA) was not included in this contract because it is primarily a furnish and deliver contract.
The Affirmative Action Ordinance, Revised Appendix D applies only to construction contracts over a $100,000.00 threshold. These sections on page D-5 of the Ordinance address the types of covered contracts:
• Section 4, Coverage: The following provisions, to be known as "Appendix D" together with relevant forms shall apply and be appended to every construction contract awarded by the District where the estimated total expenditure is in excess of $100,000.00, except contracts let in the event of an emergency contract pursuant to 70 ILCS 2605/11.5."
• Section 5. Definitions: (g) "Construction contract" means any District contract or amendment thereto, providing for a total expenditure in excess on One Hundred Thousand Dollars ($100,000.00) for the construction, demolition, replacement, major repair or renovation and maintenance of real property and improvement thereon or sludge hauling and any other related contract which the District deems appropriate to be subject to Appendix D consistent with the Ordinance.
The bid deposit in the amount of $57,800.00 will be retained in lieu of a performance bond, which is satisfactory to the Law Department and approved by the Director of Procurement and Materials Management
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order for Contract 22-632-11 to Rowell Chemical Corporation, in an amount not to exceed $1,287,675.70.
The contract term shall commence five days after the date of the purchase order, and terminate six months thereafter, or upon expenditure of available funds, whichever occurs sooner.
Funds for the 2022 expenditure, in the amount of $1,287,675.70, are available in Accounts 101-67000, 68000, 69000-623560.
Requested, John P. Murray, Director of Maintenance and Operations
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:bn
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 June 16, 2022