TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 1, 2022
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to decrease purchase orders with Siemens Industry, Inc., to provide panel upgrades, maintenance, and repair services on HVAC control systems at the Stickney, Calumet, and Kirie Water Reclamation Plants, in an amount of $104,401.48, from an amount of $291,515.97 to an amount not to exceed $187,114.49, Accounts 101-67000/68000/69000-612680/623070/623270, Purchase Orders 3102840, 3102841 and 3102843
Body
Dear Sir:
On October 4, 2018, and as amended on February 7, 2019, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue purchase orders and enter into a multi-year service agreement with Siemens Industry, Inc., to provide panel upgrades, maintenance, and repair services on HVAC control systems at the Stickney, Calumet, and Kirie Water Reclamation Plants, in an amount not to exceed $322,263.00. The Agreement expired on June 30, 2022.
As of August 18, 2022, the attached list of change orders has been approved.
Original Amount of Purchase Orders $322,263.00
Date of Board Approval 10/4/2018
Cumulative Change Order (8/18/2022) -$30,747.03
% Change of Original Contract Value -9.5%
Current Contract Value $291,515.97
Requested Decrease -$104,401.48
New Contract Value $187,114.49
% Change of Current Contract Value -35.8%
% Change of Original Contract Value -41.9%
A decrease in the value of the purchase orders is requested to reflect a reduction in actual expenditures for 2022, and to close out the purchase orders. 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 the purchase orders in an amount of $104,401.48 (approximately 35.8% of the current purchase orders’ value) from an amount of $291,515.97 to an amount not to exceed $187,114.49.
Funds will be restored to Accounts 101-67000/68000/69000-612680/623070/623270.
Requested, John P. Murray, Director of Maintenance and Operations, EJS:JS:MAG:JR:SSG
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 September 1, 2022
Attachment