TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 16, 2026
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Executive Director
Title
Authority to decrease Contract 24-638-22 (Re-Bid), HVAC Improvements at Various Locations, Group A to IHC Construction Companies, LLC, in an amount of $208,829.55, from an amount of $24,528,000.00 to an amount not to exceed $24,319,170.45, Account 401-50000-645780, Purchase Order 5002030
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Dear Sir:
On May 1, 2025, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 24-638-22 (Re-Bid), HVAC Improvements at Various Locations, Group A to IHC Construction Companies, LLC, in an amount not to exceed $24,528,000.00. The contract completion date is July 19, 2028.
There have been no prior change orders.
Original Contract Amount $24,528,000.00
Date of Board Approval 5/1/2025
Cumulative Change Order (4/2/2026) $0.00
% Change of Original Contract Value 0.0%
Current Contract Value $24,528,000.00
Requested Increase or Decrease -$208,829.55
New Contract Value $24,319,170.45
% Change of Current Contract Value -0.9%
% Change of Original Contract Value -0.9%
The engineer has determined certain revisions are required to the original scope of work resulting in a net decrease in value of $208,829.55.
While in the contract post-award phase, it was determined, via inspection, that three (3) of the eight (8) absorption chillers specified to be rebuilt under the contract exhibited significant internal component wear / damage which was unknown at the time of the project development. The engineer determined that to increase the equipment reliability and reduce future maintenance costs, replacing the three (3) chillers was warranted. The replacement of the chillers was not part of the original contract and therefore was not included in the original design drawings and represents a change in scope to the contract. The contractor submitted cost proposals (COR-1 & 3) which included a total credit of ($952,357.78) for removing the scope to rebuild three chillers and a total extra of $1,041,763,31 for installation of three new chillers, resulting in a net extra of $89,405.53.
Based on the contract schedule of value and equipment submittals, the engineer determined the cost related to furnish, deliver and install two (2) chemical feed sheds was excessive and should be removed from the scope of work. The contractor submitted cost proposals (COR-7 & 8) for a total credit in the amount of $246,017.95.
It was also determined the specified type of replacement unit heaters to be installed at the Stickney Engineering Center were not physically compatible with the ceiling openings. The contractor submitted cost proposal (COR-9) for a total credit in the amount of $51,851.93.
Finally, the engineer identified alternative routing of the Stickney M&R facility’s HVAC building management system communication cables would improve the system’s network performance and reliability. The contractor submitted cost proposal (COR-10) for a total credit in the amount of $365.20.
The engineer has reviewed all proposals and found them to be reasonable.
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 decrease Contract 24-638-22 (Re-Bid), HVAC Improvements at Various Locations, Group A in an amount of $208,829.55 or 0.9% of the current contract value, from an amount of $24,528,000.00 to an amount not to exceed $24,319,170.45.
Funds will be restored to Account 401-50000-645780.
Requested, Pinakin V. Desai, Acting Director of Maintenance and Operations, JBS:BML:JMC
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for April 16, 2026
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