2024-11-001-02 Change Order Notice V.23.2 (3).pdf
PDF 2 MB Posted
- Attached to
- CHANGE ORDER NOTICE - Pitney Postage
- Solicitation number
- 24-478HFS-DIREC-B-43416
- Issued by
- Illinois
About this file
This document is a Change Order Notice issued by the Chief Procurement Office for General Services in Illinois. It details an amendment to the Fiscal Year 2024 Pitney Bowes Postage contract (Agency Reference Number: 2024-11-001, BidBuy Reference Number: 23-478HFS-PERSA-B-36661) for the Department of Healthcare and Family Services (HFS). The change order is needed due to recent unforeseen postage rate increases by the U.S. Postal Service, with the rate for a 1-ounce First-Class Mail letter increasing from $0.60 to $0.66 on July 9, 2023, and further increasing to $0.68 on January 21, 2024, resulting in an overall 13.33% postage rate increase in FY24. Consequently, the contract amount must be amended to cover the increased postage costs for the remainder of the fiscal year.
The original contract solely covered postage expenses, and the rate hikes by the U.S. Postal Service directly impact the number of letters that can be mailed within the existing budget. HFS has spent an average of $580,000 per month on postage from July 1, 2023, to April 30, 2024, and requires an additional $1,160,000 to accommodate the increased rates and continue operations through May and June 2024. The increase in postage rates by the U.S. Postal Service was unforeseen at the time the contract was established, necessitating this amendment to ensure continued postal operations.
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Change Order Notice Chief Procurement Office for General Services Change Order Notice V.23.2 Page of Notice of renegotiated contracts and change orders that increase the cost of a contract by more than $25,000 or the time of completion by a total of 180 days or more shall be posted on the Bulletin/BidBuy for 14 days.
This Change Order Notice provides detail as to why the change order is needed and, pursuant to Section 33E-9 of the Criminal Code, that the circumstances said to necessitate the change in performance were not reasonably foreseeable at the time the contract was signed or the change is germane to the original contract as signed. Change orders are defined by Section 1-15.12 of the Procurement Code and Section 1.2067 of the CPO-GS' Administrative Rules.
Detailed explanation for this change order:
11.0.0.20130303.1.892433.887364
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| DropDownList1: HFS - Health and Family Services |
| ProcurementTitle: Pitney Bowes Postage |
| BBREFNO.: 24-478HFS-DIREC-B-43416 |
| thedetails: The Department of Healthcare and Family Services (HFS) is requesting an amendment to the FY24 Pitney Bowes Postage contract (Agency Reference Number: 2024-11-001, BidBuy Reference Number: 23-478HFS-PERSA-B-36661) due to recent unforeseen postage rate increases by the US Postal Service. |
On July 9, 2023, the postage rate for a 1-ounce First-Class Mail letter increased from $0.60 to $0.66. Subsequently, on January 21, 2024, the rate further increased to $0.68. These adjustments resulted in an overall postage rate increase of 13.33% in FY24. Consequently, the contract amount must be amended to cover the increased postage costs for the remainder of the fiscal year.
During the period from July 1, 2023, to April 30, 2024, HFS has spent an average of $580,000 per month on postage. To accommodate the increased rates and continue operations through May and June 2024, HFS requires an additional $1,160,000. This contract solely covers postage expenses; thus, the rate hikes by the US Postal Service directly impact the number of letters that can be mailed within the existing budget. For instance, loading $25,000 to a postage meter at a rate of $0.60 per letter covers more mailings than at the increased rates of $0.66 and $0.68 per letter.
The increase in postage rates by the US Postal Service was unforeseen at the time the contract was established, necessitating this amendment to ensure continued postal operations.
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