Budget Message / Highlights - Metropolitan Water Reclamation ...

METROPOLITAN WATER RECLAMATION DISTRICT OF GREATER CHICAGO
2009 BUDGET
PROCUREMENT AND MATERIALS MANAGEMENT
2009 BUDGET NARRATIVE
The mission of the Procurement and Materials Management Department is to procure materials and services required for
District operations in compliance with the Purchasing Act. The Department operates four storerooms at District facilities and
provides services related to planning, receiving, storing, and issuing of materials. The Department is also responsible for
managing the District’s sale of obsolete, used, and surplus materials.
The 2009 appropriation request for the Procurement and Materials Management Department is $10,393,700, an increase of
$585,800 or 6 percent from 2008. Staffing requirements for the Department are 70 positions, the same as 2008. The
Department continues to monitor the growth in expenditures while expanding the services provided to operating departments.
Significant features of this year’s budget include:
• Utilize job order contracting (JOC), a competitively bid procurement tool, for small projects ($10,000 to $100,000), time
sensitive work orders, and emergency situations that may arise;
• Continue procurement of environmentally friendly products utilized in the day to day operations and include these
requirements when contracting for services;
• Implementation of the SAP Suppliers Relationship Management module (SRM) which will incorporate standard contract
management, automated bid evaluation and award, catalog management, and document builder components.
Accomplishments during 2008 include:
• In conjunction with the State of Illinois, the Procurement and Materials Management Department implemented iBid to
auction surplus and obsolete materials and equipment. This tool enables the District to dispose of surplus and obsolete
items in a timely manner;
• Developed an environmental procurement policy which includes the economic and environmental values needed to protect
the quality of life;
• Implemented two environmental programs; one for janitorial products resulting in ten (10) environmentally friendly
janitorial products which replaced twenty-four (24) old cleaners including bleach and one bulb replacement program
where twenty-one (21) different compact florescent lamps have been added to the inventory replacing incandescent lamps;
• Development of a contract database that shows a timeline for the development of contract documents beginning with the
date that authority is received up to and including post-award activity;
• Continued work on the development of a comprehensive procedural handbook for contracts and request for proposals;
• Increased the competitive bid threshold from $10,000 to $25,000 for furnish and deliver of materials or equipment only;
• Disposed of various purchasing documents located at the North Side plant in accordance with the District’s document
retention policy.
During 2009, the Procurement and Materials Management Department will maintain its commitment to continuous
improvement in procuring the highest quality goods and providing the most efficient services to other departments within the
District. The goals and initiatives of the Procurement and Materials Management Department for 2009 are as follows:
1. Provide goods and services that meet customer standards
of quality in a timely manner.
Millions
$1,000
Procurement and Materials Management is constantly looking at
ways to provide needed goods and services in a timely manner
Formal Contracts Advertised
Bond Fund
859.2
for the operating departments. During 2008 a number of
Construction Fund
$800
unforeseeable events occurred that require the need for the
Corporate Fund
696.1
District to utilize the JOC program. This program gives the
District the ability to have a competitively bid contractor $600
available to handle small projects ($10,000 to $100,000); time
sensitive work orders, and emergency situations as they arise.
The unit price book establishes pricing for various construction
$400
related tasks. The contractors then submit bids for overhead and
profit factors. The contract is awarded to the contractor with the
188.6
$200
lowest profit and overhead factor.
121.9
158.3 160.1
The benefits to utilizing the JOC program include simplifying
contract administrative work associated with the bidding of small
$0
Est. Proj.
projects, shorter lead time between the identification of a need for
contracted maintenance or construction services and the actual
acquisition of such services, and overall reduced costs.
2004 2005 2006 2007 2008 2009
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