TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 18, 2018
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Acting Executive Director
Title
Authority to award Contract 17-985-11, Specialized Railroad Car Repair and Rebuilding in the Stickney Service Area, to JK-CO, LLC, in an amount not to exceed $464,576.00, Account 101-69000-612670, Requisition 1454597
Body
Dear Sir:
On April 6, 2017, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 17-985-11, Specialized Railroad Car Repair and Rebuilding in the in the Stickney Service Area.
In response to a public advertisement of August 15, 2018, a bid opening was held on September 11, 2018. The bid tabulation for this contract is:
JK-CO, LLC *$464,576.00
*corrected total
Forty-five (45) companies were notified of this contract being advertised and eight (8) companies requested specifications.
The Director of Procurement and Materials Management has reviewed the bidders’ list for this contract, and is satisfied that the market for this service has been adequately solicited. A planholders’ survey revealed the following reason for not bidding: unable to provide a bid at this time. In light of these findings, the Director of Procurement and Materials Management is of the opinion that the bid received is a fair and reasonable price, and nothing would be gained by rejecting the sole bid and re-advertising this contract.
JK-CO, LLC, the sole bidder, is proposing to perform the contract in accordance with the terms and specifications of the contract. The estimated cost for this contract is $415,000.00, placing the bid of $464,576.00, approximately 11.9 percent above the estimate.
JK-CO LLC is not registered to transact business in Illinois, but has submitted a certificate of good standing from the State of Ohio. The Department of Procurement and Materials Management has received approval from the Director of Maintenance and Operations to move forward with the recommendation to award.
The Multi-Project Labor Agreement (MPLA) was not included in this contract because the work is performed off-site at the contractor’s facility.
The Affirmative Action Ordinance, Revised Appendix D is not included in this contract due to the specialized nature of the services required.
The contract will require approximately 2 to 3 people for the services.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 17-985-11 to JK-CO, LLC, in an amount not to exceed $464,576.00, subject to the contractor furnishing a performance bond in form satisfactory to the Law Department and approved by the Director of Procurement and Materials Management.
The Contractor shall commence work upon approval of the Contractor’s Bond and complete all work by December 31, 2020.
Funds for the 2018 expenditure, in the amount of $100,000.00, are available in Account 101-69000-612670. The estimated expenditures for 2019 are $70,700.00, and for 2020 are $293,876.00. Funds for the 2019 and 2020 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:cm
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 18, 2018