TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 2, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to decrease Contract 96-116-2P Diffuser Plate Replacement Batteries A & B, to Phillips Getschow Co. in an amount of $335,573.33, from an amount of $7,278,927.88, to an amount not to exceed $6,943,354.55, Accounts 101-50000-612650 and 201-50000-645650, Purchase Order 3007786
Body
Dear Sir:
On May 17, 2001, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 96-116-2P Diffuser Plate Replacement Batteries A & B to Phillips Getschow Co. in an amount not to exceed $7,137,232.12. The contract expired on March 30, 2004.
As of January 18, 2012, the attached list of change orders has been approved. The effect of these change orders resulted in an increase of $141,695.76 from the original amount awarded of $7,137,232.12. The current contract value is $7,278,927.88. The prior approved change orders reflect a 1.99% increase to the original contract value.
In 2004, Phillips Getschow defaulted on the subject project. The company ceased to operate although there is no record of a formal bankruptcy. Records of the Illinois Secretary of State indicate an involuntary dissolution of Phillips Getschow as of October 12, 2004. However, the project was completed by the surety, Centennial Insurance Company, in 2004 and the District paid for its work. At that time, Engineering was also informally advised of various legal issues and possible pending claims by subcontractors that effectively impeded the ability to close out this contract. Therefore, the project was allowed to remain open on the books and now that the relevant statutes of limitation have passed and the District has not been served with notice of related litigation, it is reasonable and appropriate to formally close the books on this matter.
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 Contract 96-116-2P in an amount of $335,573.33 (4.61% of the current contract value), from an amount of $7,278,927.88, to an amount not to exceed $6,943,354.55.
Funds will be restored to Accounts 101-50000-612650 and 201-50000-645650.
Requested, Kenneth A. Kits, Director of Engineering, CW:JJ
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 February 2, 2012
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