TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 12, 2018
COMMITTEE ON Procurement
Mr. John P. Murray, Acting Executive Director
Title
Authority to increase Contract 11-239-3S Calumet Intercepting Sewer 19F Rehabilitation, Calumet Service Area, to Insituform Technologies USA, LLC, in an amount not to exceed $1,831,573.64, from an amount of $12,407,282.47, to an amount not to exceed $14,238,856.11, Account 401-50000-645700, Purchase Order 4000036
Body
Dear Sir:
On June 2, 2016, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 11-239-3S Calumet Intercepting Sewer 19F Rehabilitation, Calumet Service Area, to Insituform Technologies USA, LLC, in an amount not to exceed $12,395,588.70. The scheduled contract completion date was March 6, 2018.
As of June 22, 2018, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $11,693.77 from the original amount awarded of $12,395,588.70. The current contract value is $12,407,282.47. The prior approved change orders reflect a 0.09% increase to the original contract value.
During surface preparation for lining of the junction chamber, the contractor discovered excessive corrosion within the structure. It was determined between 4-5 inches of the structure had deteriorated. The specified method of rehabilitation cannot be installed in the structure in its current condition and would not provide sufficient structural integrity to account for the loss of structure. In order to remedy the situation, the contractor is proposing to simplify the lower portions of the existing structure and remove and replace the upper portion of the structure. The credit work included is the reduction in the square footage to be rehabilitated. The contractor submitted a cost proposal (CCO-002) for an extra in the amount of $1,862,562.03 and a credit in the amount of $30,988.39, for a net extra in the amount of $1,831,573.64. The engineer reviewed the proposal, and although the engineer and the contractor were unable to come to an agreement regarding the cost, in an effort to expedite the work, and as stated via correspondence 0273, the Engineering Department recommends its approval. This work will be tracked on a time and material basis up to the aforementioned not to exceed value.
This change order is in compliance with the Illinois Criminal Code since the change is due to circumstances not reasonably foreseeable at the time the contract was signed, and is 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 a change order to increase Contract 11-239-3S in an amount not to exceed $1,831,573.64 (14.76% of the current contract value), from an amount of $12,407,282.47, to an amount not to exceed $14,238,856.11
Funds are available in Account 401-50000-645700.
Requested, Catherine A. O’Connor, Director of Engineering, WSS:KMF
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 12, 2018
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