TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 5, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to increase Contract 11-186-3F Addison Creek Reservoir, Bellwood, Illinois, to IHC Construction Companies, L.L.C. in an amount of $568,586.74, from an amount of $63,280,000.00, to an amount not to exceed $63,848,586.74, Account 401-50000-645620, Purchase Order 4000068
Body
Dear Sir:
On January 24, 2019, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 11-186-3F Addison Creek Reservoir, Bellwood, Illinois, to IHC Construction Companies in an amount not to exceed $63,280,000.00, plus a five (5) percent allowance for change orders in an amount of $3,164,000.00, for a total amount not to exceed $66,444,000.00. The contract expires on March 21, 2021.
This contract has no prior change orders.
During design of the Addison Creek Reservoir project, the environmental sampling was performed to delineate the depths of contaminated soils on the reservoir site. Following award of the construction contract, supplemental environmental testing was performed by the District in order to be able to certify that material located below the limits of contaminated soils meet the definition of Uncontaminated Soils under the State of Illinois’ Clean Construction Demolition Debris (CCDD) regulations. Based on the results of the supplemental environmental testing, an updated soil management plan was developed to identify the limits of CCDD and non-CCDD materials. Based on this updated grading plan, the volume of soil classified as CCDD decreased and the volume of soil classified as contaminated, non-special waste soil increased. As a result of this change in soil classification, the District requested the contractor to submit a cost proposal for the incremental cost to dispose of approximately 15,650 cubic yards (CY) of soil as contaminated, non-special waste versus CCDD.
On July 29, 2019, the contractor submitted cost proposal (CO-1) for $568,688.30. However, the contractor subsequently rescinded this proposal. On November 4, 2019, the contractor resubmitted a revised cost proposal for $1,048,550.00. The Engineer reviewed the latest cost proposal and found it unreasonable for the work described, because the revised cost proposal did not include a credit for the 15,650 CY of lump sum CCDD material omitted from the contract. The engineer has negotiated in good faith with the contractor to achieve a consensus and was not able to come to an agreement. As a result, the engineer, utilizing the District’s right to make a final and binding determination under Article 8 of the General Conditions, recommends approval of this work as a net extra in the amount of $568,586.74. The engineer’s estimate for the extra work is in line with the contractor’s original cost proposal summitted on July 29, 2019.
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 11-186-3F in an amount of $568,586.74 (0.90% of the current contract value), from an amount of $63,280,000.00, to an amount not to exceed $63,848,586.74.
Funds are available in Account 401-50000-645620.
Requested, Catherine A. O’Connor, Director of Engineering, WSS:JK
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 December 5, 2019