TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 13, 2023
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order for Contract 23-822-11, Furnish and Deliver One Large Swing Lathe to the Calumet Water Reclamation Plant, to Luxe Business Partners, Inc. dba Iverson & Company, Inc., in an amount not to exceed $363,537.88, Account 101-68000-634650, Requisition 1595047
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Dear Sir:
On March 16, 2023, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 23-822-11, Furnish and Deliver One Large Swing Lathe to the Calumet Water Reclamation Plant.
In response to a public advertisement of May 24, 2023, a bid opening was held on June 13, 2023. The bid tabulation for this contract is:
GREENWAY & ASSOCIATES LTD $321,250.00
LUXE BUSINESS PARTNERS INC. dba IVERSON & COMPANY, INC. $363,537.88
BLACKOUT EQUIPMENT LLC $384,938.00
The Maintenance and Operations Department reviewed the low bid from Greenway & Associates, Ltd. and indicated that their bid does not comply with all the terms and specifications of the contract for the following reasons: The proposed lathe has a thread per inch (TPI) range of 1 to 15 TPI, whereas the detail specification requires a thread per inch range of 0.5 to 28 TPI. Also, the proposed lathe operates in a spindle speed range of 56 to 300 RPM, while the detail specifications require that the lathe meet a speed range of 7 to 400 RPM. Therefore, the Director of Procurement and Materials Management has informed Greenway & Associates, Ltd. that their bid is considered non-responsive and rejected based on the reasons above and in the public’s best interest.
Luxe Business Partners, Inc. dba Iverson & Company, Inc., the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost for this contract is $385,000.00, placing their bid of $363,537.88 approximately 5.6 percent below the estimate.
The Multi-Project Labor Agreement and the Affirmative Action Ordinance, Revised Appendix D are not included in this contract because the subcontracting opportunities will not be practical due to the specialized design and manufacture of this type of equipment.
The contractor shall deliver the lathe and accessories within two hundred ten (210) calendar days after receipt of the purchase order.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order for Contract 23-822-11 to Luxe Business Partners, Inc. dba Iverson & Company, Inc., in an amount not to exceed $363,537.88.
Funds are available in Account 101-68000-634650.
Requested, John P. Murray, Director of Maintenance and Operations
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:gv
Respectfully Submitted, Marcelino Garcia, 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 July 13, 2023
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