TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 3, 2022
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to decrease purchase order for Contract 22-641-11, Furnishing and Delivering Liquid Carbon Dioxide to the Stickney Water Reclamation Plant, to American Gases Corporation, in an amount of $666,805.39, from an amount of $841,200.00, to an amount not to exceed $174,394.61, Account 101-69000-623560, Purchase Order 3116476
Body
Dear Sir:
On October 21, 2021, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order for Contract 22-641-11, Furnishing and Delivering Liquid Carbon Dioxide to the Stickney Water Reclamation Plant, to American Gases Corporation, in an amount not to exceed $841,200.00. The contract expires on December 31, 2023.
There have been no prior change orders.
Original Contract Amount $841,200.00
Date of Board Approval 10/21/2021
Cumulative Change Order (10/19/2022) $0.00
% Change of Original Contract Value 0.0%
Current Contract Value $841,200.00
Requested Decrease ($666,805.39)
New Contract Value $174,394.61
% Change of Current Contract Value -79.3%
% Change of Original Contract Value -79.3%
A decrease in the value of the purchase order is requested to close out the purchase order. The contract is being forfeited because the contractor is not delivering the chemical. 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.
The Director of Procurement and Materials Management has advised American Gases Corporation that their contract will be forfeited in accordance with Section 70 ILCS 2605/11.11 of the Purchasing Act. This firm will not be considered a responsible bidder for a one-year period.
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 in an amount of $666,805.39 (approximately 79.3% of the current contract value) from an amount of $841,200.00 to an amount not to exceed $174,394.61.
Funds will be restored to Account 101-69000-623560.
Requested, John P. Murray, Director of Maintenance and Operations, EJS:JS:MAG:JR:SSG
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 3, 2022