TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 4, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to decrease Contract 15-120-3P Conversion of GCTs to WASSTRIP Process, Stickney Water Reclamation Plant to Morrison Construction Company in an amount of $256,797.76 from an amount of $5,408,467.89, to an amount not to exceed $5,151,670.13, and to decrease the related five percent change order allowance in an amount of $4,309.54, from an amount of $4,309.54, to an amount not to exceed $0.00, Account 401-50000-645650, Purchase Order 4000035 (Deferred from the March 21, 2019 Board Meeting)
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Dear Sir:
On December 4, 2014, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 15-120-3P, Conversion of GCTs to WASSTRIP Process, Stickney Water Reclamation Plant, to Morrison Construction Company, in an amount not to exceed $5,223,243.00 plus a five (5) percent allowance for change orders in an amount of $261,162.15, for a total amount not to exceed $5,484,405.15. The substantial completion date was June 28, 2018.
As of March 8, 2019, the attached list of change orders has been approved. The effect of these change orders resulted in a net increase in the amount of $185,224.89 from the original amount awarded of $5,223,243.00. The current contract value is $5,408,467.89. The prior approved change orders reflect a 3.55% increase to the original contract value.
Item 1: A net extra in the amount of $46,522.84 is necessary for modifications to the 3” piping from the new primary sludge recycle pumps into the primary sludge fermenters. During construction, it was discovered that the designed layout of the recycle piping may result in short circuiting and inefficient operation of the fermenter. The modified piping is necessary to provide better hydraulics, mixing and prevent the short circuiting of the recycled sludge. The contractor submitted a cost proposal (CCO-003) for a net extra in the amount of $46,522.84. The engineer reviewed the proposal, found it reasonable, and stated via correspondence 524, that the Engineering Department would recommend approval.
Item 2: A credit in the amount of $303,320.60 is necessary to close out this contract. A credit for unit price work items that were not fully utilized because the condition of the concrete was better than anticipated included unit price work under Cost Proposal B (Division 3) for crack repairs and Cost Proposal C (Division 3) for spalled concrete repair, will be decreased in the amount of $282,620.60. Additionally, liquidated damages were assessed to the contractor in the amount of $20,700.00 for failure to achieve final completion within the contract specified time.
This contract is complete and it is necessary to decrease and close this purchase order. In addition to a reduction in the remaining value of the contract, the remaining balance of the five percent allowance for change orders also must be decreased.
These change orders are in compliance with the Illinois Criminal Code since the change orders are due to circumstances not reasonably foreseeable at the time the contact 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 change orders to decrease Contract 15-120-3P in an amount of $256,797.76 (4.75% of the current contract value), from an amount of $5,408,467.89, to an amount not to exceed $5,151,670.13 and to decrease the remaining five percent change order allowance in an amount of $4,309.54, from an amount of $4,309.54, to an amount not to exceed $0.00.
Funds will be restored to Account 401-50000-645650.
Requested, Catherine A. O’Connor, Director of Engineering, ECB:GR
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 April 4, 2019
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