TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 12, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase Contract 04-299-2P, Improvements to Aeration Batteries A, B, C, E1, and E2 at Calumet Water Reclamation Plant, to F.H. Paschen/S.N. Nielsen & Associates, L.L.C., in an amount of $61,901.44, from an amount of $20,690,337.23, to an amount not to exceed $20,752,238.67, Accounts 101-50000-612650, 401-50000-645650, and 645750, Purchase Order 5000831
Body
Dear Sir:
On February 7, 2008, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 04-299-2P, Improvements to Aeration Batteries A, B, C, E1, and E2 at Calumet Water Reclamation Plant, to F.H. Paschen/S.N. Nielsen & Associates, L.L.C., in an amount not to exceed $20,391,000.00. The scheduled contract completion date is March 7, 2011.
As of July 9, 2010, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in the amount of $299,337.23 from the original amount awarded of $20,391,000.00. The current contract value is $20,690,337.23. The prior approved change orders reflect a 1.47% increase to the original contract value.
Item 1: This contract involves furnishing and installing new diffuser plates in Battery B. After installation, the plates did not pass the final air supply testing provided by the contract, therefore, the District demanded that the contractor conduct additional testing to determine the cause of the deficiency. After extensive testing and in conjunction with the Maintenance and Operations Department, it was determined that while the plates could not pass the specified testing criteria, they were providing the necessary air supply for operation. Since the testing did not show that the failure was due to the materials furnished and installed by the contractor, the contractor submitted a claim for the additional testing as a compensable cost. The contractor submitted a cost proposal (CCO 1-24) for an extra in the amount of $96,951.44 for the additional labor, materials and equipment associated with the investigation and destructive testing components of Battery B Aeration Tanks. The engineer reviewed the proposal, found it to be reasonable, and stated via correspondence 446, that the Engineering Department would recommend its approval.
Item 2: A net credit in the amount of $35,050.00 to install the fiberglass reinforced plastic grating on a concrete floor as a walkway in lieu of the steel grating supported on steel framing. A portion of the contract involves the installation of steel grating supported on steel framing for a walkway around the polymer pumps adjacent to the aged polymer tanks in the dewatering building. During construction, the engineer directed the contractor to lower the outlet nozzles on the polymer tanks to the bottom of the tanks along with the associated pumps and piping so that the tanks may drain completely. This field condition does not allow the installation of the steel grating supported on steel framing because it interferes with the piping. Fiberglass reinforced plastic grating directly supported on a concrete floor will be installed as a walkway in lieu of the steel grating supported on steel framing. The contractor submitted a cost proposal (CCO-16) for an extra in the amount of $5,572.84 and a credit in the amount of $40,622.84, for a net credit in the amount of $35,050.00. The engineer reviewed the proposal, found it reasonable, and stated via correspondence 443 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 contract.
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 04-299-2P in an amount of $61,901.44 (0.30% of the current contract value), from an amount of $20,690,337.23, to an amount not to exceed $20,752,238.67.
Funds are available in Accounts 101-50000-612650, 401-50000-645650, and 645750.
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 August 12, 2010
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