TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 16, 2017
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to increase Contract 04-132-3D A/B and C/D Service Tunnel Rehabilitation - Phase Two, Stickney Water Reclamation Plant, to IHC Construction Companies, LLC and F.H. Paschen, S.N. Nielsen & Associates LLC, Joint Venture in an amount of $92,933.24, from an amount of $20,709,593.58, to an amount not to exceed $20,802,526.82, Account 401-50000-645750, Purchase Order 4000034
Body
Dear Sir:
On May 5, 2016, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 04-132-3D A/B and C/D Service Tunnel Rehabilitation - Phase Two, Stickney Water Reclamation Plant, to IHC Construction Companies, LLC and F.H. Paschen, S.N. Nielsen & Associates LLC, Joint Venture, in an amount not to exceed $20,519,000.00, plus a five (5) percent allowance for change orders in an amount of $1,025,950.00, for a total amount not to exceed $21,544,950.00. The scheduled contract completion date is May 17, 2019.
As of November 3, 2017, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in the amount of $190,593.58 from the original amount awarded of $20,519,000.00. The current contract value is $20,709,593.58. The prior approved change orders reflect a 0.93% increase to the original contract value.
Additional work is required to continue modifications to the high pressure steam and high pressure condensate piping routing and installation methods in the C/D Service Tunnel, which were started under CCO-012 and tracked on a Time and Material basis for an amount not to exceed $95,000.00. After reviewing the scope of work and commencing work on CCO-012, the contractor notified the District via correspondence 307 that the cost of the work may exceed the allotted $95,000.00. As a result, CCO-014 was created to account for the potential additional time which may be required to modify the steam and condensate piping and supports. The additional funds also account for the potential acceleration of labor hours by the contractor working overtime, if deemed necessary, in order to finish the work. Like CCO-012, the additional work will be tracked on a Time and Material basis with a not to exceed value.
The contractor submitted a cost proposal for an extra in an amount not to exceed $187,933.24 for this work. An extra in the amount of $92,933.24, the difference between the contractor’s proposal, and the not to exceed value of $95,000.00 approved under CCO-012, is now requested under CCO-014. The engineer reviewed the proposal, found it to be reasonable, and stated via correspondence 311, that the Engineering Department would recommend its approval.
This change order is in compliance with the Illinois Criminal Code since the change is germane to the contract.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a change order to increase Contract 04-132-3D in an amount not to exceed $92,933.24 (0.45% of the current contract value), from an amount of $20,709,593.58, to an amount not to exceed $20,802,526.82.
Funds are available in Account 401-50000-645750.
Requested, Marcella V. Landis, Acting Director of Engineering, ECB:LMK
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 November 16, 2017
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