TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 15, 2009
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase purchase order and amend agreement with PMA Consultants of Illinois LLC for trial preparation and expert witness trial testimony, in the amount of $20,000.00, from an amount of $95,000.00, to an amount not to exceed $115,000.00, Account 201-50000-601170, Purchase Order 3045609
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Dear Sir:
On April 5, 2007, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with PMA Consultants of Illinois LLC (PMA) for professional engineering services on three District contracts, 97-362-1S, 00-275-2V and 01-353-2M, in an amount not to exceed $30,000.00. Subsequent to this authorization, it was decided to issue three separate agreements and purchase orders for each construction contract, in an amount of $10,000.00 each.
As of October 7, 2009, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in the amount of $85,000.00 from the original amount awarded of $10,000.00. The current contract value is $95,000.00. The prior approved change order reflects an 850% increase to the original contract value.
The District is currently a defendant in the matter of Rausch Construction Co. v. Metropolitan Water Reclamation District of Greater Chicago, No. 07 CH 4269, wherein Rausch Construction Company LLC (Rausch) alleges the District wrongfully assessed liquidated damages under Contract 97-362-1S. The contract work involved rehabilitation of Dropshaft 5 in Des Plaines, Illinois. The District forfeited Rausch on December 6, 2006.
In the Rausch matter, written and oral non-expert discovery has been completed. During those phases, PMA provided scheduling review and prepared a detailed schematic of approximately 15 major delays to the project occasioned by Rausch.
PMA has prepared and tendered its expert report in the matter and has also assisted in the preparation and taking of the deposition of the opposing expert witness and has given expert deposition testimony. Trial in this matter is set for October 26, 2009. Additional approval is needed to cover PMA’s continued participation, appearance and assistance at trial.
It is anticipated that these services will cost an additional $20,000.00.
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 increase the purchase order and amend the agreement in an amount of $20,000.00 (21.06% of the current contract value), from an amount of $95,000.00, to an amount not to exceed $115,000.00.
Funds are available in Account 201-50000-601170.
Requested, Frederick M. Feldman, General Counsel, FMF:LJH:crb
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 October 15, 2009
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