Approved by the Board of Trustees May 21, 2009 35 Board Meeting May 21, 2009 ROLL CALL PURCHASE, CHANGE ORDER, AND RENEWAL RECOMMENDATIONS The "Purchase, Change Order, and Renewal Recommendations" are presented by campus and a Summary from "Appropriated Funds" (i.e., from State appropriations to the University) and from "Institutional Funds” is included. The latter term is used here to designate funds received by the University under contracts with the United States Government; contracts with private corporations and other organizations, from foundation grants, and grants from corporations and other donors; and University revolving funds authorized by law. The Summary also indicates a total amount by campus. The board action recommended in this item complies in all material respects with applicable State and federal laws, University of Illinois Statutes, The General Rules Concerning University Organization and Procedure, and Board of Trustees policies and directives. The Directors of Purchases have proposed and the Vice President and Chief Financial Officer recommends the following purchases, change orders, and renewals. Unless otherwise specified, the purchase in each case is recommended on the basis of the lowest acceptable bid. The President of the University concurs. PURCHASES RECOMMENDED Urbana-Champaign Campus 1 Unit Department of Physics Item Helium gas for the period July 1, 2009 through June 30, 2010. Cost $306,000 (estimated) Vendor S.J. Smith Co., Inc., Urbana, IL 1 Bids Received Total Estimated Cost S.J. Smith Co., Inc., Urbana, IL $306,000 Praxair Distribution Inc., Hillside, IL $339,900 Air Products & Chemicals Inc, Allentown, PA $345,000 Air Liquide Industrial US LP, Countryside, IL $395,700 Competitive bidding procedures were followed in accordance with the Illinois Procurement Code. Helium gas will be used by researchers and instructors to perform research projects and instruct students in the laboratory environment. 2 Unit Various Campus Departments Item Bulk liquid nitrogen for the period of July 1, 2009 through June 30, 2010 Cost $373,644 (estimated) Vendor S.J. Smith Co., Inc., Urbana, IL Bids Received Total Estimated Cost S.J. Smith Co., Inc., Urbana, IL $373,644 Air Products & Chemicals Inc, Allentown, PA $465,656 Air Liquide Industrial US LP, Countryside, IL $489,272 Depke Gases & Welding Supplies, Inc., Danville, IL $611,706 Competitive bidding procedures were followed in accordance with the Illinois Procurement Code. Bulk liquid nitrogen will be used by researchers and instructors to perform research projects and instruct students in the laboratory environment. 3 Unit Business School Executive MBA Program Item Hotel accommodations for approximately 105 Executive MBA Program students for the period July 1, 2009, through June 30, 2010, with the option to renew for three additional one year periods at an increase not to exceed 5% for each renewal period. All renewals are subject to continuing need, availability of funds, satisfactory performance, and Board of Trustees’ approval. 2 Cost $403,592 (estimated) Renewal Options: FY11 $423,772 est. FY12 $444,960 est. FY13 $467,208 est. Vendor Club Quarters, Central Loop, Chicago, IL Proposals Received Point Summary of Proposals (Maximum Score of 1200) Club Quarters, Central Loop, Chicago, IL 1,136 Hilton Hotels Corp. Palmer House, Chicago, IL 743 Competitive bidding procedures were followed in accordance with the Illinois Procurement Code. Hotel accommodations are for approximately 105 Executive MBA Program students while attending classes at the Illini Center in Chicago. Lodging at Club Quarters allows students to stay at a hotel within walking distance to their classes at the Illini Center. The cost of accommodations at Club Quarters is 26% less than the only other hotel with availability on the dates required. The cost of lodging is covered in the students’ tuition and fees, making this a cost recovery program. 4 Unit Institute for Genomic Biology/Roy J. Carver Biotechnology Center Item Genomic DNA Sequencing kits for the period of July 1, 2009 through June 30, 2010. Cost $1,500,000 (estimated) Vendor Roche Diagnostics Corp, Indianapolis, IN This purchase is a sole source because the items are patented, compatible with existing equipment, and required under the service contract for the equipment. Roche Diagnostics Corp. is the only manufacturer and distributor. 3 The kits for the Genomic Sequencer FLX system are used for DNA sequencing by multi-disciplinary researchers in multiple campus departments. The Roche Diagnostics System is operated by the Biotechnology Center. The Center services faculty and staff throughout the University, and it services off campus researchers on a cost recovery basis from sponsored funding from National Institute of Health, National Science Foundation, or United States Department of Agriculture. Roche has agreed to hold the FY09 pricing, which provided a discount of 40%, for FY10. In addition, Roche introduced new reagent kits this year that have increased the data per run such that the University is realizing 4 to 5 times the data for the same price. An additional discount of 20% for Titanium Sequencing Kits has been negotiated for FY10. The prices are considered fair and reasonable. 5 Unit Institute for Genomic Biology, Roy J. Carver Biotechnology Center Item Genome Analyzer System reagents for the period of July 1, 2009 through June 30, 2010. Cost $500,000 (estimated) Vendor Illumina, Inc., San Diego, CA This purchase is a sole source because the items are patented, compatible with existing equipment, and required for ongoing research. Illumina is the only manufacturer and distributor of these reagents. The purchase of the Illumnia Genome Analyzer Sequencer System was approved by the Board of Trustees on March 26, 2008. The system is the only high throughput genotyping system that can read approximately two billion bases of sequence data for RNA and small DNA. Each run on this system requires reagents and kits that can only be purchased from Illumina because of existing patents and Illumina’s warranty guarantee on the Analyzer system. The reagents for the Genome Analyzer are used for RNA and small DNA sequencing by multi-disciplinary researchers in multiple campus departments. A volume discount of 10% has been negotiated. 4 6 Unit Institute for Genomic Biology, Roy J. Carver Biotechnology Center Item BeadStation kits/reagents for the period of July 1, 2009 through June 30, 2010. Cost $500,000 (estimated) Vendor Illumina, Inc., San Diego, CA This purchase is a sole source because the items are patented, compatible with existing equipment, and required for ongoing research. Illumina is the only manufacturer and distributor of these kits/reagents. The purchase of the BeadStation system was approved by the Board of Trustees on September 6, 2007. The system is used in various disciplines to determine the state of genetic markers for the discovery of genes affecting disease, production traits, ecotypes, and other applications in life sciences. The kits/reagents for the BeadStation are used for single nucleotide polymorphism genotyping by multi-disciplinary researchers in multiple campus departments. The kits can only be purchased from Illumina because of existing patents and Illumina’s warranty guarantee on the BeadStation analyzer system. They are not available from any other vendor at this time. A volume discount of 10% has been negotiated plus a 20% discount on the Infinium Bovine items. 7 Unit Electrical and Computer Engineering Item Femtosecond Laser System Cost $407,208 Vendor Kapteyn-Murnane Laboratories, Inc., Boulder, CO This purchase is a sole source because the item is patented, and Kapteyn- Murnane Laboratories, Inc. is the only manufacturer and distributor. The femtosecond laser system is the only complete commercially 5 manufactured, cryogenically cooled, femtosecond laser that can produce laser pulses as short as 45 fs (45 10-15 seconds) which are considerably shorter in duration than those available to researchers in the past. The availability of this laser system will open the door to new physics that will ultimately yield new optical sources. Additionally, this system will be used to develop a compact, deep-ultraviolet laser that could make a major contribution in how integrated circuits (“computer chips”) are manufactured. The Department of Materials Science and Engineering will use this system for research resulting in benefits to medicine and the monitoring of toxins in the environment. The price is considered fair and reasonable. A discount of $21,432 has been negotiated. The equipment will be over 90% grant funded. 8 Unit Department of Geology Item Multibeam Echo Sounder System Cost $414,598 Vendor RESON Inc., Goleta, CA This purchase is a sole source because there are no technically comparable systems available on the market. Urbana-Champaign researchers have developed a suite of software routines using a range of shallow-water Multibeam Echo Sounders (MBES) systems that have been leased over the past eight years. The NSF funding now allows the purchase of this MBES system, which is the very latest, state-of-the-art, shallow-water system. It will allow for unique future research capabilities as well as the continuation of several existing projects. In addition, it is compatible with existing equipment at collaborating institutions. MBES have become the research tool of choice for providing highly accurate quantification of the shape of landscapes beneath the oceans, lakes, and rivers. This high quality