TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 17, 2013
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to decrease Contract 07-163-3M (Re-Bid) R&D Building HVAC Improvements, SWRP, to Path-Millhouse Joint Venture in an amount of $4,208,871.27, from an amount of $9,154,041.75, to an amount not to exceed $4,945,170.48, Accounts 401-50000-645680 and 645780, Purchase Order 5001056
Body
Dear Sir:
On July 9, 2009, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 07-163-3M (Re-Bid) R&D Building HVAC Improvements, SWRP, to Path-Millhouse Joint Venture (PMJV), in an amount not to exceed $8,253,300.00. The scheduled contract completion date was April 25, 2011.
As of January 4, 2013, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $900,741.75 from the original amount awarded of $8,253,300.00. The current contract value is $9,154,041.75. The prior approved change orders reflect a 10.91% increase to the original contract value.
On November 15, 2012, the Board of Commissioners authorized the mutual termination of this project between PMJV and the District, due to substantial, problematic difficulties that occurred during the course of the work. PMJV and the District, being unable to reach agreement on specific points in the contract, entered into the mutual termination and settlement agreement in order to avoid litigation. The contract work is approximately 50% complete; once closed, a future contract will be advertised for completion of the remaining work.
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 decrease Contract 07-163-3M (Re-Bid) in an amount of $4,208,871.27 (45.98% of the current contract value), from an amount of $9,154,041.75, to an amount not to exceed $4,945,170.48.
Funds will be restored to Accounts 401-50000-645680 and 645780.
Requested, Catherine A. O'Connor, Director of Engineering, JB:JJ
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 January 17, 2013
Attachment