(TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 12, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase purchase order and amend the agreement with Consoer Townsend Environdyne Engineers, Inc. for professional services for Contract 07-026-2P Review and Support of Master Plan Activities at the North Side Water Reclamation Plant, in an amount of $700,000.00, from an amount of $1,800,000.00, to an amount not to exceed $2,500,000.00, Account 201-50000-601170, Purchase Order 3046881 (Deferred from the July 8, 2010 Board Meeting) (As Revised)
Body
Dear Sir:
On July 12, 2007, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with Consoer Townsend Environdyne Engineers, Inc. (CTE) for Contract 07-026-2P Review and Support of Master Plan Activities at the North Side Water Reclamation Plant. The scheduled agreement completion date is August 29, 2010.
As of June 18, 2010, the attached change order has been approved. The effect of this change order resulted in an increase in the amount of $1,000,000.00 from the original amount awarded of $800,000.00. The current contract value is $1,800,000.00. The prior approved change order reflects a 125% increase to the original contract value.
The subject contract was initiated for two purposes. First, it provides a mechanism for the District to direct CTE, the consultant who prepared the Master Plan for the North Side WRP, to provide updates, modifications, and further analysis on the Master Plan as the needs arise during implementation of the Master Plan projects. Second, it provides for CTE to provide interpretations and clarifications of the conclusions and recommendations of the water quality technical memoranda which they completed under the previous Master Plan contract; develop a detailed integrated strategy for achieving the IEPA’s proposed dissolved oxygen (DO) standards for the Chicago Area Waterways (CAWs); and provide support on the Use Attainability Analysis (UAA) process as requested by the District.
The original contract value of $800,000 was exhausted by the first two task orders that were issued to CTE, which involved development of an integrated strategy for achieving the IEPA’s proposed DO standards for the CAWS, and preparation of a preliminary design cost opinion for ultraviolet (UV) disinfection facilities at the North Side WRP. On October 26, 2007, the IEPA filed proposed amendments to water quality standards and effluent limitations for the CAWs and Lower Des Plaines River. Shortly thereafter, the IPCB began hearings related to the IEPA’s regulatory proposal. Thus, a transition had taken place from the UAA arena to the IPCB hearings arena. As a result, additional professional services were required from CTE, and the purchase order for Contract 07-026-2P was increased by $1,000,000.00, as approved by the Board on December 20, 2007. This contract increase has been utilized for additional cost estimates for UV disinfection at the North Side WRP; preparation of preliminary design cost opinions for chlorination/dechlorination disinfection facilities at the North Side, Stickney, and Calumet WRPs; expert witness testimony and support during the IPCB hearings, by CTE’s personnel and their subconsultants; and assistance to the Monitoring and Research Department with development of a counter proposal to the IEPA’s DO standards.
Another contract increase is required in order to continue to support the District’s case in the IPCB’s hearings. The amount of the increase is based on various tasks which are anticipated to be needed as the District advances its alternative DO standards. This includes: (1) additional scientific analysis in order to create a scientifically sound, defensible alterative DO standard, (2) detailed development of an integrated strategy to meet the District’s alternative DO standard, including cost estimates and further water quality modeling, and (3) expert testimony before the IPCB.
Inasmuch as CTE’s personnel have been assisting the District for the past five years with respect to the UAA process and the IPCB’s rulemaking proceedings and have provided expert testimony before the IPCB, and since the IPCB hearings are on-going, it is in the District’s best interest to continue utilizing CTE’s services for this work.
Due to the increased scope and duration of the hearings, CTE has requested a time extension of 365 days to complete the work. The new completion date will be August 29, 2011.
The Engineering Department has received a cost proposal from CTE in an amount of $700,000.00 for the additional scope of work, in which the rate remains the same.
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 $700,000.00 (38.89% of the current contract value), from an amount of $1,800,000.00, to an amount not to exceed $2,500,000.00, and to approve a time extension of 365 days.
Funds for the 2010 expenditures in the amount of $299,000.00 are available in Account 201-50000-601170. The estimated expenditures for 2011 are $401,000.00. Funds for the 2011 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for this year.
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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