TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 17, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase Contract 06-218-3M (Re-Bid), Blower Nos. 9 & 10 and Air Main Installation at the Calumet Water Reclamation Plant with Meccon Industrial, Inc., in an amount of $5,595.00, from an amount of $16,102,617.00, to an amount not to exceed $16,108,212.00, Accounts 101-50000-612650, 401-50000-645650, and 645750, Purchase Order 5001024
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Dear Sir:
On May 21, 2009, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 06-218-3M (Re-Bid), Blower Nos. 9 & 10 and Air Main Installation at the Calumet Water Reclamation Plant, to Meccon Industries, Inc., in an amount not to exceed $16,025,240.00. The scheduled contract completion date is December 20, 2011.
As of June 4, 2010, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in the amount of $77,377.00 from the original amount awarded of $16,025,240.00. The current contract value is $16,102,617.00. The prior approved change orders reflect a 0.48% increase to the original contract value.
Item 1: An extra in the amount of $10,267.00 to provide conduit and wiring for the new vacuum pump and secondary separator poppet valve control panel, in the dust unloading system for the Blower Building. The contract documents stated that existing electrical feeders would be reused; however, the Maintenance and Operation Department used these feeders for another function prior to the contract award. The engineer was not informed about these changes during the design stage. Therefore, it is necessary to add new conduit and wire for the new vacuum pump and valve control panel. The contractor submitted a cost proposal in the amount of $10,267.00. The engineer reviewed the cost proposal (CCO-3), found it reasonable, and stated via correspondence 219, that the Engineering Department would recommend its approval.
Item 2: A net credit in the amount of $4,672.00 to provide pipe with smaller diameter than specified for the air main inside and outside the blower building and to provide a victaulic coupling in lieu of a flange connection at the existing air valve vault. The contract documents specified that the size of pipe 45” and larger is based on the inside diameter of the pipe. The industry standard is that this pipe size is based on the outside diameter of the pipe. Therefore, the Engineering Department determined that it is appropriate to accept a pipe of slightly smaller inner diameter, since the pipe specified does not exist. In addition, the contract drawings specified a flange connection at the existing air valve vault. Upon excavation at the air valve vault, it was found that the existing pipe has a victaulic coupling and blind flange. Therefore, it was determined to use a victaulic ring to connect the new pipe with existing pipe at this location. The contractor submitted a cost proposal (CCO-1) for an extra in the amount of $9,081.00 and a credit in the amount of $13,753.00, for a net credit in the amount of $4,672.00. The work is completed. Before the engineer’s determination on the change order, the contractor proceeded at his own risk with this work as determined in his own best interest in executing the overall contract. The engineer reviewed the cost proposal, found it reasonable, and stated via correspondence 221, that the Engineering Department would recommend its approval.
The above two change orders are in compliance with the Illinois Criminal Code since the changes are germane to the original contract as signed.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute two change orders to increase Contract 06-218-3M (Re-Bid) in an amount of $5,595.00 (0.03% of the current contract value), from an amount of $16,102,617.00, to an amount not to exceed $16,108,212.00.
Funds are available in Accounts 101-50000-612650, 401-50000-645650 and 645750.
Requested, Kenneth A. Kits, Director of Engineering, TEK:JAW
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Purchasing
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for June 17, 2010
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