TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 20, 2022
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authorization to increase cost estimate for Contract 20-160-4H TARP Mainstream Dropshaft DS-M73E at Armitage Avenue, SSA, estimated revised cost between $11,970,000.00 and $14,490,000.00, Account 401-50000-645620, Requisition 1553647
Body
Dear Sir:
On January 21, 2021, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise Contract 20-160-4H TARP Mainstream Dropshaft DS-M73E at Armitage Avenue, SSA at an estimated cost between $9,120,000.00 and $11,040,000.00.
The contract was not advertised in 2021 due to delays in the nearby redevelopment project that will be rerouting one of the MWRD interceptors. On July 16, 2020, the Board of Commissioners authorized the District to negotiate an IGA with the City of Chicago to reroute a section of the West Side 9 Interceptor which is to be connected to the proposed drop shaft. The IGA between the City of Chicago and the District was put on hold until the work to construct the new development and relocate the District’s intercepting sewer was ready to begin. The work is now scheduled to begin in 2023.
The increase in cost estimate is required due to significant increases in material, labor, and equipment costs due to unforeseeable record-high inflation, supply shortages, and further impacts of the COVID-19 pandemic. Additionally, higher rates of indirect costs are included to account for the volatile and unpredictable nature of the current construction market caused by staffing shortages, increased energy and consumer prices, and higher interest rates.
The purpose of this contract is to construct a new dropshaft to divert wet weather flow from the West Side Intercepting Sewer 9 to the TARP Mainstream Tunnel to alleviate two combined sewer overflows to the Chicago River at Armitage Avenue and Cortland Street.
The proposed work includes constructing dropshaft DS-M73E and associated entrance and exit conduits, making a live connection to the Mainstream Tunnel, and all appurtenances required. Work will take place near the intersection of West Armitage Avenue and North Dominick Street within the city of Chicago.
It is estimated that 60 jobs will be created or saved as result of award of this contract, with an estimated 49,200 man-hours of skilled trades utilized.
The revised estimated cost for this contract is between $11,970,000.00 and $14,490,000.00. The cost range will be stated in the advertisement for bids.
The bid deposit for this contract is $580,000.00.
The contract specifications require that all work commence 30 calendar days after approval of the contractor’s bond and shall be completed within 400 calendar days after approval of the contractor’s bond. Liquidated damages are $2,000.00 for each calendar day that the contractor is in default of the time specified for achieving substantial work completion and $400.00 for each calendar day that the contractor is in default of the time specified for completion of the entire work.
The Multi-Project Labor Agreement (MPLA) will be included in this contract.
The Affirmative Action Ordinance, Revised Appendix D will be included in this contract. The type of work to be performed under the contract is within the “Construction Services” category for establishing Minority-owned Business Enterprises (MBE), Women-owned Business Enterprises (WBE), Small Business Enterprises (SBE) and/or Veteran-owned Business Enterprises (VBE) utilization goals. The MBE, WBE, SBE and/or VBE utilization goals for this contract are: 20 percent MBE and/or WBE, 10 percent SBE and 3 percent VBE. The requirements of the Special Training Provisions for Apprentices are 1,290 Minority and 460 Female hours for the purpose of this contract.
The tentative schedule for this contract is as follows:
Advertise November 30, 2022
Bid Opening January 24, 2023
Award March 16, 2023
Completion May 2, 2024
Funds for the revised cost estimate are available in Account 401-50000-645620.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to increase the cost estimate to between $11,970,000.00 and $14,490,000.00 for Contract 20-160-4H.
Requested, Catherine A. O’Connor, Director of Engineering, KMF:LS
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 October 20, 2022
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