TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 1, 2022
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
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Authority to award Contract 17-135-3V, Roof Replacement of the Lue-Hing M&R Complex, Stickney Water Reclamation Plant to IHC Construction Companies, L.L.C., in an amount not to exceed $10,909,000.00, plus a five (5) percent allowance for change orders in an amount of $545,450.00, for a total amount not to exceed $11,454,450.00, Account 401-50000-645780, Requisition 1572767 (As Revised)(Deferred from the November 17, 2022 Board Meeting)
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Dear Sir:
On June 2, 2022, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 17-135-3V, Roof Replacement of the Lue-Hing M&R Complex, Stickney Water Reclamation Plant.
In response to a public advertisement of July 20, 2022, a bid opening was held on August 30, 2022. The bid tabulation for this contract is:
IHC CONSTRUCTION COMPAINES L.L.C. $10,909,000.00
F. H. PASCHEN, SN NIELSEN & ASSOCIATES LLC $11,788,000.00
PATH CONSTRUCTION COMPANY, INC. $11,870,000.00
ACCEL CONSTRUCTIONS SERVICES GROUP, LLC $12,686,300.00
THE GEORGE SOLLITT CONSTRUCTION COMPANY $13,021,200.00
IHC Construction Companies L.L.C., the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost range for this contract is $6,918,000.00 to $8,376,000.00, placing their bid of $10,909,000.00 approximately 30.2 percent over the high end of the estimated cost range.
The bids are higher than anticipated due to an inflationary labor market and uncertainties in the costs of raw materials, notably petroleum-based roofing products and roofing insulation. Additionally, unforeseen supply chain disruptions, coupled with the defined work limitations and associated liquidated damages, resulted in higher bids.
IHC Construction Companies L.L.C., has executed the Multi-Project Labor Agreement (MPLA) Certificate as required. It is anticipated that the following trades will be utilized on this contract: roofer, bricklayer, laborer, carpenter, electrician, painter, pipefitter, plumber, sheet metal worker, steel worker, and tile mason. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
The Minority Business Enterprise (MBE), Women Business Enterprise (WBE), Small Business Enterprise (SBE) and Veteran-Owned Business Enterprise (VBE) utilization goals for this contract are 20 percent MBE, 10 percent WBE, 10 percent SBE, and 3 percent VBE.
IHC Construction Companies L.L.C., is in compliance with the Affirmative Action Ordinance, Revised Appendix D and Appendix V as indicated on the attached report. The bidder has committed to the following utilization goals for this contract: 22 percent MBE, 19 percent WBE, and the bidder offers WBE credits to satisfy SBE participation. Bidder provided waiver for VBE participation.
The contract will require approximately fifty-two (52) people for the services.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 17-135-3V to IHC Construction Companies L.L.C., in an amount not to exceed $10,909,000.00, plus a five (5) percent allowance for change orders in an amount of $545,450.00, for a total amount not to exceed $11,454,450.00, subject to the contractor furnishing a performance bond in form satisfactory to the Law Department and approved by the Director of Procurement and Materials Management.
The contract specifications require that all work commence 30 days after approval of the contractor’s bond and shall be completed within 730 calendar days after approval of the contractor’s bond.
Funds are available in Account 401-50000-645780.
Requested, Catherine A. O’Connor, Director of Engineering
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:bn
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 December 1, 2022
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