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HomeMy WebLinkAbout92-0722 Ray O Herron qa-o1 as RESOLUTION APPROVING CHANGE ORDER NO. 1 IN THE CONTRACT WITH , RAY O'HERRON COMPANY, INC. FOR THE PURCHASE OF SMITH & WESSON HANDGUNS WHEREAS, the City of Elgin has heretofore entered into a contract with Ray O'Herron Company, Inc. for the purchase of Smith & Wesson handguns; and WHEREAS, it is necessary and desirable to modify the terms of the contract as is described in Change Order No. 1, attached hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Larry L. Rice, City Manager, be and is hereby authorized and directed to execute Change Order No. 1, a copy of which is attached hereto and made a part hereof by reference. s/ George VanDeVoorde George VanDeVoorde, Mayor Presented: July 22, 1992 Adopted: July 22 , 1992 Vote: Yeas 4 Nays 1 Recorded: Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk ELGIN, ILLINOIS SMITH & WESSON HANDGUN PURCHASE CHANGE ORDER NO. 1 (CORRECTED) SCOPE: This Change Order No. 1 covers the purchase of S/W 4586 for the complete order of weapons (134). The contractor for this phase of the project is Ray O'Herron Company of Danville, Illinois. REASONS FOR CHANGE: This change order is required because S/W will not manufacture the 4556 gun previously ordered. The above changes were not reasonably expected at the time of the award of this contract and were not included as part of the original bid for the work. SUMMARY OF CHANGES IN CONTRACT AMOUNT: The amount of the contract will be revised as follows: ITEM 134 4586 handguns @ 500.20 (Current Contract) $67,026.80 16 additional model 4586 handguns, with holsters, extra magazines and magazine pouches provided free of cost to the City by Smith and Wesson as compensation for delivery delays and the inability to deliver model 4556 handguns. 150 handguns total The net effect to the purchase of handguns in the original contract is that the City's order will be changed to specify 134 handguns, all in the model 4586, and the City will receive 16 additional model 4586 handguns with holsters, extra magazines and magazine pouches free of cost to the City, bringing the total number of handguns supplied to the City to 150, while the total purchase price remains at $67,026.80. Accepting the 16 additional handguns as compensation would have the effect of reducing the individual unit price of each handgun to $446.85 since 150 handguns would be delivered instead of the original quantity of 134. CHANGE ORDER NO. 1 (Corrected) July 16, 1992 Page 2 OTHER CONTRACT PROVISIONS: All other contract provisions shall remain the same. Agreed to this � day of 1UL)/ , 1992. Recommended: CHIEF OF POLICE By:Date: /r7' a lf"' /q Accepted: RAY O'HERRON COMPANY, INC. BY:)( /%/�€ 4 7 Title: REJ!DE-k T Date: '2-gO`la Approved: CITY 0 E GI By: Title: . 411 AG (t_ Date: 1 'Z3,yL t ' ton Agenda Item No . 6.1-4Nc July 2, 1992 TO: Mayor and City Council FROM: Mr. Larry Rice, City Manager SUBJECT: Smith and Wesson Handguns Change Order PURPOSE: Authorizing modification in the previously approved Smith and Wesson Handgun purchase. BACKGROUND: In July of 1991, the City Council authorized the purchase III of 134 Smith and Wesson handguns from the Ray O'Herron Equip- ment Company of Danville, Illinois . In the purchase, the po- lice department specified 90 of the handguns were to be model 4586 weapons, with the remaining 44 handguns in the smaller version model 4556 . Although both models are essentially the same and both are smaller than the current weapons in use, the model 4556 was considered more convenient for supervisors ' and detectives ' use around the offices. Originally, the entire handgun order was to be shipped by October of 1991. Several delays ensued, prompting the City to require Smith and Wesson Company to have a representative ap- pear before the City Council to explain the situation. Their representative appeared at the March 25, 1992, City Council Meeting reportedhandguns that the hand uns would be delivered in May and June of 1992 . The department was told that the model 4586 handguns would be delivered in May and the smaller version model 4556 in June. In May, Smith and Wesson contacted the Police Department and gave a new shipping date of June 18, 1992, on the model 4586 handguns. The model 4556 was to be delivered during the summer months, with no specific delivery date having been pro- vided. To compensate the City for the continued delay in deliv- • ery of the handguns, Smith and Wesson volunteered to provide the City with eleven ( 11) free model 4586 handguns, holsters, and magazine pouches . The estimated value of these items as a concession was some $7,000. Eleven ( 11) handguns in the model � I • Agenda Item Smith and Wesson Handguns Page 2 4586 sent to Elgin by Smith and Wesson, have been issued to new recruits as they were hired since February of 1992 . On Friday, June 12, 1992 , Smith and Wesson contacted the Police Department and stated they would be shipping the ninety (90) model 4586 handguns as promised on June 18, 1992 . Howev- er, Smith and Wesson also reported that the smaller version handgun, (model 4556) , was being discontinued, due to a lack of sufficient buyer interest. Smith and Wesson estimated that the national demand for this handgun amounted to only 500 units, and this lack of demand resulted in the company's decision not to produce this handgun in any quantity. This decision on the part of Smith and Wesson effectively standardizes the composition of the Elgin order. Although the 90 model 4586 handguns have been received and are now in Elgin, it is evident that the 4556 handguns will not be manufactured. Because the compact version handgun (model 4556 ) is no longer available for purchase, the Police Department has decid- eed to standardize the entire purchase to the model 4586 and purchase the remaining 44 handguns in that model to complete the delivery. Mr. Tom Marks, the Vice President of Smith & Wesson, who appeared before Council on this matter has left the employment of Smith & Wesson. We are uncertain if the problems associated with this order and the information supplied to Council at that meeting had any bearing on his decision. Smith and Wesson has offered, as an incentive, to provide the City of Elgin with five (5) additional model 4586 handguns with holsters and magazine pouches free of change, if the City is willing to continue with the purchase. This concession would amount to approximately $3,000 . With the previous incen- tives provided to the City for delivery days, this would amount to some $10,000 in goods received as compensation for the pro- tracted delivery schedule. The original purchase cost was $67,000 for 134 handguns . The net effect is that the City would ultimately receive 16 free ' handguns, holsters, and maga- zine pouches . FINANCIAL IMPACT: The purchase price will not change as the costs for both models are identical . i • III genda Item . Smith and Wesson Handguns Page 3 RECOMMENDATION: Because this change order alter impacts the specifications of the purchase as previously authorized by the City Council, staff requests authorization to proceed. .�C_-<__12. Larry . . Rice, ity Manager •