TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 5, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to increase Contract 04-299-2P Improvements to Aeration Batteries A, B, C, E1 and E2 at Calumet Water Reclamation Plant, to F.H. Paschen/S.N. Nielsen & Associates, L.L.C. in an amount of $25,000.00, from an amount of $20,830,995.07, to an amount not to exceed $20,855,995.07, Accounts 101-50000-612650, 401-50000-645650 and 645750, Purchase Order 5000831
Body
Dear Sir:
On February 7, 2008, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 04-299-2P Improvements to Aeration Batteries A, B, C, E1 and E2 at Calumet Water Reclamation Plant, to F.H. Paschen/S.N. Nielsen & Associates, L.L.C., in an amount not to exceed $20,391,000.00. The scheduled contract completion date was March 7, 2011.
As of March 16, 2012, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $439,995.07 from the original amount awarded of $20,391,000.00. The current contract value is $20,830,995.07. The prior approved change orders reflect a 2.16% increase to the original contract value.
On March 2, 2012, a meeting took place between the contractor and the District to discuss and resolve outstanding issues impeding the close out of the contract. The District had previously reviewed information presented by the contractor. The meeting allowed the contractor to present supplementary information to the District that would justify the compensation claimed. In light of the supplementary information provided, a global settlement of $25,000.00 was offered by the District and accepted by the contractor via correspondence 629. This amount represents the difference of a deductive credit change order of $20,000.00 credited to the District from the contractor for deletion on an expansion joint repair and an extra in the amount of $45,000.00 as a settlement amount for modifying existing centrifuge controls, gallery beam repairs and electrical work not shown in the contract documents. The engineer agreed with these settlement amounts and stated via correspondence 630, that the Engineering Department would recommend its approval.
This change order is in compliance with the Illinois Criminal Code since the change is germane to the contract.
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 04-299-2P in an amount of $25,000.00 (0.12% of the current contract value) from an amount of $20,830,995.07 to an amount not to exceed $20,855,995.07.
Funds are available in Accounts 101-50000-612650, 401-50000-645650 and 645750.
Requested, Kenneth A. Kits, Director of Engineering, MVL:CH
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 April 5, 2012
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