TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 18, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase Contract 03-296-3M, Installation of Central Boiler Facility at Calumet Water Reclamation Plant, to IHC Construction Companies LLC, in an amount of $85,000.00, from an amount of $29,215,317.94, to an amount not to exceed $29,300,317.94, Account 401-50000-645650, Purchase Order 5000458
Body
Dear Sir:
On September 22, 2005, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 03-296-3M, to IHC Construction Companies, LLC, in an amount not to exceed $25,844,400.00. The contract terms called for the completion of all work by April 20, 2008. This contract is substantially complete.
As of March 5, 2010, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in the amount of $3,370,917.94 from the original amount awarded of $25,844,400.00. The current contract value is $29,215,317.94. The prior approved change orders reflect a 13.0% increase to the original contract value.
On December 18, 2008 the Board authorized a change order under this contract to complete the forfeited Contract 00-275-2V, the construction of the Calumet Laboratory, for an amount of $960,251.00. That change order was premised upon correction of the known deficiencies at the time of default and the effort required to complete the original work on a time and materials basis. In the course of completing the laboratory, a number of additional deficiencies were discovered that required correction as a part of the completion effort by the completion contractor. The laboratory is now substantially complete and this change order represents the estimated time and material costs to complete the remaining punchlist and closeout items to allow occupancy of the laboratory.
The contractor submitted a revised extra work cost proposal (COR-275-40) for time and material work in an amount not to exceed $85,000.00. The Engineer reviewed the proposal, found it to be reasonable, and stated via file letter 823, that the Engineering Department would recommend its approval.
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 03-296-3M, in an amount of $85,000.00 (0.29% of the current contract value,) from an amount of $29,215,317.94, to an amount not to exceed $29,300,317.94.
Funds are available in Account 401-50000-645650.
Requested, Kenneth A. Kits, Acting Directing of Engineering, CH:BS
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 March 18, 2010
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