TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 2, 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 $386,836.46, from an amount of $60,511,759.18, to an amount not to exceed $60,898,595.64, 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 August 13, 2010, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in the amount of $3,385,059.18 from the original amount awarded of $57,126,700.00. The current contract value is $60,511,759.18. The prior approved change orders reflect a 5.93% increase to the original contract value.
Item 1: An extra in the amount of $14,228.33 to repair damaged conduits to restore the influent gate structure. The original contract required the installation of caissons for the transformer pad. Approximately three years ago, while excavating for transformer caissons, the contractor inadvertently damaged three electrical conduits which provide power and control to the influent gate structure. These conduits were not shown on the as-built drawings. In order to allow completion of the transformer pad, the contractor was directed to provide new conduit stubs underneath the transformer pad. The contractor was compensated for this work under COR-4. The complete conduit repair was not accomplished at that time since it was known that work under Contract 93-232-2M Hydraulic Improvements, which is constructing the new High Level Influent Pumping Station, would be tearing up the road through which these conduits run. Since the work on the roadway under Contract 93-232-2M is completed the conduits must be repaired in order to restore the full functionality of the influent gate structure. This change order includes extra work to replace conduit and wire from the stubbed conduits to the influent gate structure, which is located near the northeast corner of First Street and Calumet Drive at the Calumet Water Reclamation Plant. The contractor proceeded to repair the damaged conduits as he determined in his own best interest, prior to approval by the District. The engineer has now determined this work to be additional scope to the contract. The contractor submitted a cost proposal (COR-96) in the amount of $14,228.33. The engineer reviewed the proposal, found it reasonable, and stated via file letter 1112, that the Engineering Department would recommend its approval.
Item 2: An extra in the amount of $372,608.13 to repair two coarse screens in the wet shaft at the Calumet TARP Pumping Station. These screens are damaged and their supports have failed due to an excessive accumulation of debris. They are vital to the operation of the Calumet TARP Pumping Station and must be repaired to prevent large debris from entering the TARP pumps. The repair work includes removal of the existing screens in the east and west channels of the wet shaft, as well as fabrication of new strengthened bottom sections of the screens and reinstallation of the screens. New structural supports for the screens will also be fabricated and installed to strengthen the screens and prevent a recurrence of damage.
The contractor submitted a cost proposal (COR-111) in the amount of $299,780.97. The proposal also includes a contingency payment of $6,068.93/day for delays caused by flood-out dates that prevent scheduled entry into the wet shaft. This contingency payment shall be applicable for up to 12 days for a maximum contingency payment of $72,827.16. However, the contingency payment shall only be paid for the actual number of days of flood delay and shall not be paid if no such delay occurs. Therefore, the total cost proposal for this change order is for an amount not to exceed $372,608.13. The engineer reviewed the cost proposal, found it reasonable, and stated via correspondence 1122, 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 due to circumstances that were not reasonably foreseeable at the time the contract was signed, and are 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 two change orders to increase Contract 04-294-3M in an amount $386,836.46 (0.64% of the current contract value), from an amount of $60,511,759.18, to an amount not to exceed $60,898,595.64.
Funds are available in Account 401-50000-645600.
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 September 2, 2010
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