TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 5, 2020
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order for Contract 20-935-11, Furnishing and Delivering Sodium Hydroxide to Rowell Chemical Corporation, in an amount not to exceed $815,830.00, Account 101-69000-623560, Requisition 1540223
Body
Dear Sir:
On May 7, 2020, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 20-935-11, Furnishing and Delivering Sodium Hydroxide.
In response to a public advertisement of August 19, 2020, a bid opening was held on September 15, 2020. The bid tabulation for this contract is:
ROWELL CHEMICAL CORPORATION $815,830.00
ALEXANDER CHEMICAL CORPORATION $860,370.00
OLIN CORPORATION PREVIOUSLY KA STEEL D/B/A
OLIN CHLOR ALKALI PRODUCTS & VINYL $979,456.00
Rowell Chemical Corporation, the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost of this contract is $1,740,000.00, placing their bid of $815,830.00 approximately 53.1 percent below the estimate.
The Multi-Project Labor Agreement (MPLA) was not included in this contract because it is primarily a furnish and deliver contract.
The Affirmative Action Ordinance, Revised Appendix D applies only to construction contracts over a $100,000.00 threshold. These sections on page D-5 of the Ordinance address the types of covered contracts:
• Section 4, Coverage: The following provisions, to be known as "Appendix D" together with relevant forms shall apply and be appended to every construction contract awarded by the District where the estimated total expenditure is in excess of $100,000.00, except contracts let in the event of an emergency contract pursuant to 70 ILCS 2605/11.5."
• Section 5. Definitions: (g) "Construction contract" means any District contract or amendment thereto, providing for a total expenditure in excess on One Hundred Thousand Dollars ($100,000.00) for the construction, demolition, replacement, major repair or renovation and maintenance of real property and improvement thereon or sludge hauling and any other related contract which the District deems appropriate to be subject to Appendix D consistent with the Ordinance.
The contractor shall deliver the sodium hydroxide beginning five days after the mailing date of the purchase order and terminating twenty-four (24) months thereafter, or upon expenditure of available funds, whichever occurs sooner.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue purchase order for Contract 20-935-11, to Rowell Chemical Corporation, in an amount not to exceed $815,830.00.
Funds for the 2020 expenditure, in the amount of $64,000.00, are available in Account 101-69000-623560. The estimated expenditures for 2021 are $390,000.00, and for 2022 expenditures are $361,830.00. Funds for the 2021 and 2022 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 November 5, 2020