TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 20, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to increase outline agreement with LAI, Ltd., to Furnish and Deliver Process Equipment and Parts to Various Locations for a three-year period, in an amount of $98,000.00, from an amount of $564,900.00 to an amount not to exceed $662,900.00, Accounts 101-66000/67000/68000/69000-623070/623090/623270/623780
Body
Dear Sir:
On December 1, 2016, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue purchase orders to LAI, Ltd., to furnish and deliver process equipment and parts to various locations, for a three-year period, in an amount not to exceed $555,000.00. The agreement expires on December 31, 2019.
As of June 4, 2019, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $9,900.00 from the original amount awarded of $555,000.00. The current agreement value is $564,900.00. The prior approved change orders reflect an approximate 1.8% increase to the original agreement value.
This increase is necessary due to a greater than anticipated need for MSA gas detection system replacement parts, Wemco pump and Headworks screen replacement and preventative maintenance parts at the Stickney and Calumet Water Reclamation Plants.
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 agreement was issued, 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 agreement in an amount of $98,000.00 (approximately 17.3% of the current agreement value), from an amount of $564,900.00, to an amount not to exceed $662,900.00.
Funds are available in accounts 101-66000/67000/68000/69000-623070/623090/623270/623780.
Requested, John P. Murray, Director of Maintenance and Operations, EJS:BK:MAG:JR:JMC:WB
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 June 20, 2019
Attachment