TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 7, 2016
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to increase Contract 04-128-3P Westside Primary Settling Tanks 1-9 and Aerated Grit Facility, Stickney Water Reclamation Plant, to IHC Construction and F.H. Paschen/S.N. Nielsen Joint Venture in an amount of $2,019,487.00, from an amount of $227,033,905.30, to an amount not to exceed $229,053,392.30, Accounts 401-50000-645650, 645780, 645680, Purchase Order 4000020
Body
Dear Sir:
On December 4, 2014, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 04-128-3P Westside Primary Settling Tanks 1-9 and Aerated Grit Facility, Stickney Water Reclamation Plant, to IHC Construction and F.H. Paschen/S.N. Nielsen Joint Venture, in an amount not to exceed $224,760,000.00 plus a five (5) percent allowance for change orders in an amount of $11,238,000.00, for a total amount not to exceed $235,998,000.00. The scheduled contract completion date is April 6, 2018.
As of June 17, 2016, the attached list of change orders has been approved. The effect of these change orders resulted in a net increase in the amount of $2,273,905.30 from the original amount awarded of $224,760,000.00. The current contract value is $227,033,905.30. The prior approved change orders reflect a 1.01% increase to the original contract value.
Item 1: A net extra in an amount of $1,769,487.00 is necessary to provide and install additional casework, finishes and to perform electrical and mechanical work in the laboratory rooms affected by the HVAC improvements in the M&R Laboratory. The work was required to eliminate corroded casework, damaged flooring and to improve the daily work operations in the laboratory building. The work can be performed at this time with minimum disruption, as many of the laboratory rooms involved are presently vacated for the HVAC improvements being made under the contract. The contractor submitted a cost proposal (CCO-065) for an extra in the amount of $1,770,140.59 and a credit in the amount of $653.59, for a net extra in the amount of $1,769,487.00. The engineer reviewed the proposal, found it to be reasonable, and stated via correspondence 1478, that the Engineering Department would recommend its approval.
Item 2: An extra in an amount not to exceed $250,000.00 is required to provide inspection and repair services for the neutralization basin system, which serves the central portion of the M&R Laboratory. Acid waste generated by lab activities flows to the neutralization basins so that it may be neutralized with limestone aggregate prior to discharge into the sewer system. During construction, the contractor and resident engineer found that the neutralization basins no longer contained limestone. In order to ensure that the system is intact, the following work is prescribed. The inspection work includes cleaning and televising sanitary lines, removal of contaminated debris, inspection of internal piping and liners and recharging the basins with limestone aggregate. Depending on the results of the inspection, additional repair work may be required. Since this work will affect critical laboratory functions and it is not possible to determine the extent of the damage resulting from a lack of limestone, the engineer has determined that this work shall be tracked on a Time and Material basis with a not to exceed value. The engineer reviewed the potential work required and submitted a cost proposal (CCO-050) for an extra in an amount not to exceed $250,000.00. The engineer stated via correspondence 1151 that the Engineering Department would recommend its approval.
The above two change orders are in compliance with the Illinois Criminal Code since the changes are due to circumstances not reasonably foreseeable at the time the contract was signed, and are in the best interest of the District.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute two change orders to increase Contract 04-128-3P in an amount of $2,019,487.00 (0.89% of the current contract value), from an amount of $227,033,905.30, to an amount not to exceed $229,053,392.30.
Funds are available in Account 401-50000-645650.
Requested, Catherine A. O’Connor, Director of Engineering, MVL:JAW
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for July 7, 2016
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