TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 31, 2017
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to decrease purchase order to Invensys Systems, Inc., for Foxboro I/A Series I/O Upgrade at the Calumet Service Area, in an amount of $272,000.00, from an amount of $4,906,132.76, to an amount not to exceed $4,634,132.76, Account 201-50000-645690, Purchase Order 3087867
Body
Dear Sir:
On December 17, 2015, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into Agreement with Invensys Systems, Inc. (now Schneider Electric Systems USA, Inc.), for Foxboro I/A Series I/O Upgrade at the Calumet Service Area, in an amount not to exceed $5,098,000.00. The Purchase Order expires December 31, 2017.
As of April 21, 2017, the attached list of change orders has been approved. The effect of these change orders resulted in a decrease in an amount of $191,867.24 from the original amount awarded of $5,098,000.00. The current contract value is $4,906,132.76. The prior approved change orders reflect a 3.8% decrease to the original Purchase Order value.
Because the District issued a Purchase Order to Invensys Systems, Inc. (now Schneider
Electric Systems USA, Inc.) before December 30, 2015, per the terms of the Agreement, we are eligible for a discount in pricing of 9%, resulting in a total aggregate savings of approximately $460,000.00. This credit was confirmed by Schneider Electric Systems USA, Inc. in a letter to the District dated May 16, 2017.
This change order is in compliance with the Illinois Criminal Code since these changes are due to circumstances not reasonably foreseeable at the time the purchase order 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 execute a change order to decrease Purchase Order 3087867 in an amount of $272,000.00 (5.5% of the current Purchase Order value), which represents the discounted value for the 2017 budget year, from an amount of $4,906,132.76, to an amount not to exceed $4,634,132.76.
Funds will be restored to Account 201-50000-645690.
Requested, John P. Murray, Director of Maintenance and Operations, BAP:SO’C:MAG:JR
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 August 31, 2017
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