TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 5, 2021
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to award Contract 21-699-12, Services of Heavy Equipment with Operators, to K.L.F. Enterprises, Inc., in an amount not to exceed $2,677,500.00, Accounts 101-68000,69000-612520, Requisitions 1546515, 1546508
Body
Dear Sir:
On November 5, 2020, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 21-699-11, Services of Heavy Equipment with Operators.
In response to a public advertisement of March 10, 2021, a bid opening was held on March 30, 2021. All bids were rejected at the Board Meeting of May 6, 2021 as reported.
In response to a public advertisement of May 12, 2021, a bid opening was held on June 8, 2021. The bid tabulation for this contract is:
GROUP A: LAWNDALE AVENUE SOLIDS MANAGEMENT AREA (LASMA)
K.L.F. ENTERPRISES, INC. $1,362,900.00
GROUP B; CALUMET AVENUE SOLIDS MANAGEMENT AREA (CALSMA)
K.L.F. ENTERPRISES, INC. $1,263,410.00
The quantities specified in the contract documents were used for the purpose of comparing bids and establishing unit prices. The total amount to be expended on this contract, should usage differ from the quantities, is not to exceed $1,402,500.00 for Group A and $1,275,000.00 for Group B. A total amount of $2,677,500.00.
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 bidder. Could not supply the required equipment and/or service. 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.
K.L.F. Enterprises, Inc., the sole bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost for this contract for Groups A and B combined was $2,677,500.00, placing their bid of $2,626,310.00 approximately 1.9 percent below the estimate.
The Minority Business Enterprise (MBE), Women Business Enterprise (WBE), Small Business Enterprise (SBE), and Veteran-Owned Business Enterprise (VBE) utilization goals for this contract are 20% MBE, 9% WBE and 10% SBE and 3% VBE.
K.L.F. Enterprises, Inc. is in compliance with the Affirmative Action Ordinance, Revised Appendix D as indicated on the attached reports. The bidder has committed to 20 percent MBE, 9 percent WBE, and bidder offers MBE credits to satisfy SBE participation for Group A and B. Bidder commits to 3 percent utilization goal for VBE participation.
K.L.F. Enterprises, Inc., has executed the Multi-Project Labor Agreement (MPLA) certificate as required. The construction trades anticipated to be utilized on this contract is operating engineers. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
The contract will require approximately eight to nine (8-9) 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 20-699-12, Groups A and B to K.L.F. Enterprises, Inc., in an amount not to exceed $2,677,500.00, 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 after approval of the Contractor’s Bond and terminate three years thereafter.
Funds for the 2021 expenditure for Group A, in the amount of $302,500.00 are available in Account 101-69000-612520. The estimated expenditures for 2022 are $467,500.00, for 2023 is $467,500.00, and for 2024 is $165,000.00. Funds for 2022, 2023 and 2024 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Funds for the 2021 expenditure for Group B, in the amount of $275,000.00 are available in Account 101-68000-612520. The estimated expenditures for 2022 are $425,000.00, for 2023 is $425,000.00, and for 2024 is $150,000.00. Funds for 2022, 2023 and 2024 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:bn
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 5, 2021
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