Repository: UIHistories Project: Board of Trustees Minutes - 1970 [PAGE 759]

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1970]

UNIVERSITY OF ILLINOIS

759

After consultation with appropriate University officials, I recommend approval of the contract on the terms originally presented to the Board, as stated above. O n m o t i o n of M r . C l e m e n t , t h i s r e c o m m e n d a t i o n w a s a p p r o v e d . LITIGATION CONCERNING CHICAGO BUS SALES, INC. (21) On August 17, 1965, the Executive Committee of the Board of Trustees approved the purchase of four buses from Chicago Bus Sales, Inc., for use by the Rehabilitation-Education Center at Urbana. On September 27, 1966, the University canceled the contract for failure of the vendor to meet contract specifications and the delivery schedules, as extended. The University readvertised for bids and an emergency purchase of the four buses from E. M. Bailey & Sons was authorized by the President of the University on October 24, 1966. The purchase price of the buses on the second bidding was $19,094.04 in excess of the original purchase price from Chicago Bus Sales, Inc. Certain other expenses have been incurred by the University as a result of the failure of Chicago Bus Sales to adequately perform in accordance with its contract and the University should be entitled to recover damages on account of breach. The Vice President and Comptroller and the University Counsel recommend that authority be given to take action on behalf of the University to preserve and enforce all rights of the University resulting from the breach of contract by Chicago Bus Sales, Inc., including authority to institute and prosecute in the name of and on behalf of the University in such proceedings in a court of competent jurisdiction, and to employ such special legal counsel and others, as may be deemed necessary or desirable. I concur. O n m o t i o n of M r . J o n e s , t h i s r e c o m m e n d a t i o n w a s a p p r o v e d . PREQUALIFICATION OF BIDDERS (22) The President of the University, with the concurrence of appropriate administrative officers, recommends that the following material be added as paragraph g of Section 7 of the Regulations Governing Procurement and Bidding at the University of Illinois, as adopted pursuant to the provisions of the Illinois Purchasing Act, to provide for prequalification of bidders on certain contracts : "g. In case of contracts for the construction of buildings or for other construction work in or about buildings or grounds, where the entire estimated cost of such work exceeds $25,000, prospective bidders must be prequalified to determine their responsibility. The bidding documents for such contracts will specify the information and documentation which the prospective bidder must supply the University prior to submission of his bid. Failure to prequalify may result in the bid being disregarded or returned unopened. The Vice President and Comptroller is authorized to determine all questions relating to prequalification." The foregoing amendment is necessary in order to comply with the provision of House Bill 1636 of the Seventy-sixth General Assembly of the State of Illinois. If adopted, the amendment will be presented for approval and filing as required by the Illinois Purchasing Act.

On motion of Mr. Hahn, this recommendation was approved.

PURCHASES (23) The President submitted, with his concurrence, a list of purchases recommended by the Directors of Purchases and the Vice President and Comptroller. The list of purchases was presented in two categories: purchases from appropriated funds (i.e., from state appropriations to the University) and purchases from institutional funds. The latter term designates funds received by the University under contracts with the United States government, contracts with private corporations and other organizations, funds from foundation grants, and grants from corporations and other donors, and University revolving funds authorized by law. The total amounts of these purchases were: From Appropriated Funds $200 062 06 From Institutional Funds 321 074 50 Total $521 136 56