TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 8, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase Contract 04-294-3M, Calumet TARP Valve Isolation Chamber and Pump Station Upgrade, Calumet Water Reclamation Plant, to Kenny Construction Company, in an amount of $11,444.52, from an amount of $60,491,540.66, to an amount not to exceed $60,502,985.18, Account 401-50000-645600, Purchase Order 5000309
Body
Dear Sir:
On December 2, 2004, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 04-294-3M, Calumet TARP Valve Isolation Chamber and Pump Station Upgrade, Calumet Water Reclamation Plant, to Kenny Construction Company, in an amount not to exceed $57,126,700.00. The scheduled contract completion date was June 23, 2008.
As of June 18, 2010, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $3,364,840.66 from the original amount awarded of $57,126,700.00. The current contract value is $60,491,540.66. The prior approved change orders reflect a 5.89% increase to the original contract value.
A portion of the subject contract includes the installation of gate valves supplied under furnish and deliver Contract 99-269-AM. During the commissioning of the gate valves, it was discovered that the remote emergency shut down interface for these valves was omitted from the design and therefore not supplied. The Maintenance & Operations Department requested remote control from the Distributed Control System (DCS) for the operation of the gate valves in an emergency mode. Therefore, additional DCS hardware and software programming is required to complete the installation work.
The contractor submitted a cost proposal (COR-107) in the amount of $11,444.52. The engineer reviewed the proposal, found it reasonable, and stated via file letter 1084, that the Engineering Department would recommend its approval.
This change order is in compliance with the Illinois Criminal Code since the change is 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 a change order to increase Contract 04-294-3M in an amount of $11,444.52 (0.02% of the current contract value) from an amount of $60,491,540.66 to an amount not to exceed $60,502,985.18.
Funds are available in Account 401-50000-645600.
Requested, Kenneth A. Kits, Director of Engineering, TEK:GG
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
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