TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 12, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase Contract 07-220-3P Primary Settling Tanks and Grit Removal Facilities, Calumet Water Reclamation Plant, to F.H. Paschen/S.N. Nielsen/IHC Construction, Joint Venture, in an amount of $385,645.75, from an amount of $230,698,696.98, to an amount not to exceed $231,084,342.73, Account 401-50000-645650, Purchase Order 5000954
Body
Dear Sir:
On November 6, 2008, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 07-220-3P Primary Settling Tanks and Grit Removal Facilities, to F.H. Paschen/S.N. Nielsen/IHC Construction, Joint Venture (FHP/IHC), in an amount not to exceed $228,474,000.00. The scheduled contract completion date is November 18, 2012.
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 $2,224,696.98 from the original amount awarded of $228,474,000.00. The current contract value is $230,698,696.98. The prior approved change orders reflect a 0.97% increase to the original contract value.
Item 1: An extra in the amount of $12,809.50 to provide ball valves to the high pressure air pipeline and hose stations. The contract documents provide for isolation of the high pressure air pipeline and hose stations directly at the compressor. Since the air compressor is located quite a distance away from the points of use, the engineer determined that it would be beneficial to provide additional ball valves at four locations on the high pressure air pipeline and at each of the ten hose stations in order to facilitate maintenance by allowing isolation of equipment and piping. The contractor submitted a cost proposal (COR-70) in the amount of $12,809.50. The engineer reviewed the proposal, found it reasonable, and stated via correspondence 1581, that the Engineering Department would recommend its approval.
Item 2: A net extra in the amount of $88,800.11 to reroute the conduits in an existing duct bank, which conflicts with the installation of the new 96-inch pre-stressed cylindrical concrete pipe. The contract drawings show a new 96-inch pipeline connecting Diversion Chamber 1 with Diversion Chamber 2. However, the drawings did not show the presence of an existing electrical duct bank in the same location. The duct bank contains communication cables, which serve several process areas of the plant. Therefore, extra work to the contract is required to reroute all the necessary conduits in the existing duct bank prior to removing the existing duct bank, which is in conflict with the 96-inch pipeline. The contractor submitted a cost proposal (COR-119) for an extra in the amount of $95,353.84 and a credit in the amount of $6,553.73, for a net extra in the amount of $88,800.11. The engineer reviewed the proposal, found it reasonable, and stated via correspondence 1595, 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.
Item 3: An extra on a time and materials basis in an amount not to exceed $260,072.06 to provide temporary dewatering at MH 98. As stated in the contract specifications, no flow of storm water from the plant drains shall be discharged through plant drain MH 98 until after the new South Park/Blue Island Diversion Structure is constructed and placed in service under Contract 93-232-2M. At the time of bid and in accordance with the specifications, the contractor was aware that Contract 93-232-2M had a scheduled completion date of April 26, 2010. Since Contract 93-232-2M is still in progress, additional pumping beyond the contract requirements for dewatering is necessary. The contractor has submitted a proposal to install and remove a temporary storm water discharge pumping system at MH 98, including one month of pumping and a weekly operational cost of pumping, since the date of the South Park/Blue Island Diversion Structure completion has not yet been determined. The contractor submitted a cost proposal (COR-131) in the amount of $53,569.66 for the installation, removal, and one month of pumping operation. The proposal also includes a weekly operational cost of pumping in the amount of $5,162.56 for 40 weeks. The extra shall be paid on a time and materials basis in any amount not to exceed $260,072.06. The engineer reviewed the proposal, found it reasonable, and stated via correspondence 1678, that the Engineering Department would recommend its approval.
Item 4: A net extra in the amount of $23,964.08 to remove an existing catch basin and approximately 15 feet of existing 33-inch storm sewer pipe south of Calumet Drive. The existing catch basin will be replaced with a new manhole. The change is being requested to eliminate the conflict between the new 30-inch plant drain piping and the existing 33-inch storm sewer. The location of the existing 33-inch sewer is shown incorrectly in the contract documents. Cleaning and temporarily plugging of the 33-inch line downstream of the work site to prevent any backflow into the site is included in the proposal as well. Also included in the scope of work is deleting the removal and replacement of a 24-inch storm sewer and the installation of two new manholes. The contract documents require an existing 24-inch storm sewer to be removed and replaced but this storm sewer was not found to exist in the field. The contractor submitted a cost proposal (COR-100) for an extra in the amount of $76,612.14 and a credit in the amount of $52,648.06, for a net extra in the amount of $23,964.08. The engineer reviewed the proposal, found it reasonable, and stated via correspondence 1598, that the Engineering Department would recommend its approval.
The above two change orders are in compliance with the Illinois Criminal Code since the change is due to circumstances that were 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 four change orders to increase Contract 07-220-3P in an amount of $385,645.75 (0.17% of the current contract value), from an amount of $230,698,696.98, to an amount not to exceed $231,084,342.73.
Funds are available in Account 401-50000-645650.
Requested, Kenneth A. Kits, Director of Engineering, TEK:ECB
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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