TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 8, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase purchase order and amend the agreement with Klein & Hoffman, Inc., for professional engineering services for Contract 05-814-2D Miscellaneous Structural Engineering and Inspection Services in an amount of $600,000.00, from an amount of $2,100,000.00, to an amount not to exceed $2,700,000.00, Account 201-50000-601420, Purchase Order 3043159
Body
Dear Sir:
On December 21, 2006, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with Klein & Hoffman, Inc. (K&H) for professional engineering services for Contract 05-814-2D Miscellaneous Structural Engineering and Inspection Services for a three-year period on a task order basis. The scheduled agreement completion date is December 31, 2010.
The contract has no prior change orders.
As of June 18, 2010, the District has issued K&H fifteen (15) task orders under Contract 05-814-2D; thirteen (13) are completed and two remain open.
The first open task order is the design of Project 04-131-2D Rehabilitation of the A/B and C/D Tunnel at the Stickney WRP. During a fall of 2009 shutdown of the Battery A effluent conduit that crosses over and is supported by the A/B and C/D tunnel, repair work was identified as necessary to maintain the integrity of the tunnel system and a recommendation was made to line a section of the effluent conduit to prevent continued leakage into the tunnel system below. Since the next opportunity for a shutdown would not occur until the fall of 2012, design resources were reassigned to prepare design documents detailing repairs that were subsequently completed as a change order to Contract 01-198-AD. The extra work expanded the scope and delayed completion of the task order, now at the 60% design completion stage. This project is scheduled for advertisement in the summer of 2011; therefore, it is important to continue to retain the services of K&H to complete the project.
The second task order is to provide post-award services for the portion of Contract 01-198-AD Demolition of Sludge Disposal Building and Rehabilitation of the Pump and Blower House and Coarse Screen Building at Stickney WRP, in which K&H had the design responsibility. The amount of work was greater than originally anticipated because of numerous requests for information, increased site visits due to unforeseen site conditions and several change orders. Since K&H is familiar with the design and has been performing the post-award services on their design, it would be prudent to have them continue to complete this work.
K&H has submitted a cost proposal in an additional amount of $600,000.00 to complete these two task orders.
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 the purchase order and amend the agreement in an amount of $600,000.00 (28.57% of the current contract value) from an amount of $2,100,000.00 to an amount not to exceed $2,700,000.00 and extend the duration of the agreement from December 31, 2010 to December 31, 2011.
Funds are available in the amount of $300,000.00 for 2010 in Account 201-50000-601420 and the amount of $300,000.00 is contingent on the Board of Commissioners’ approval of the District’s 2011 budget.
Requested, Kenneth A. Kits, Director of Engineering, TEK:JKK
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 July 8, 2010