TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 6, 2020
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to increase Contract 11-239-3S Calumet Intercepting Sewer 19F Rehabilitation, Calumet Service Area, to Insituform Technologies USA, Inc. in an amount of $151,191.02, from an amount of $14,231,056.11, to an amount not to exceed $14,382,247.13, Account 401-50000-645700, Purchase Order 4000036
Body
Dear Sir:
On June 2, 2016, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 11-239-3S Calumet Intercepting Sewer 19F Rehabilitation, Calumet Service Area, to Insituform Technologies USA, Inc., in an amount not to exceed $12,395,588.70. The scheduled contract completion date was June 8, 2020.
As of July 17, 2020, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $1,835,467.41, from the original amount awarded of $12,395,588.70. The current contract value is $14,231,056.11. The prior approved change orders reflect a 14.81% increase to the original contract value.
During surface preparation for lining of the junction chamber, the contractor discovered excessive corrosion within the structure and it was determined to be completely rebuilt under a contract change order (CCO-002), which was approved by the Board of Commissioners on July 12, 2018. During the reconstruction, the contractor identified a series of unforeseen costs that were not included in their original change order proposal. Many of these costs resulted from a delay in the work which was requested by the Village of Tinley Park (Village). The Village requested to reschedule the commencement of work from late 2018 to early 2019 to alleviate concerns with street closures and having an open excavation during the winter months. As a result of the Village requested delay, the contractor incurred additional costs associated with demobilization/remobilization activities at the site, escalated wage and equipment related costs, and site restoration costs. The contractor experienced delays caused by ComEd in the deenergizing and relocating of electrical service lines, which resulted in increased equipment rental costs. Further, the District requested modifications to the junction structure design to provide safer access to the bottom of the structure. resulting in additional design and material costs.
The contractor submitted a cost proposal (CCO-002A) for an extra in the amount of $151,191.02. The engineer reviewed the proposal, found it to be reasonable, and stated via correspondence 476, that the Engineering Department would recommend its approval.
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 increase Contract 11-239-3S in an amount of $151,191.02 (1.06% of the current contract value), from an amount of $14,231,056.11, to an amount not to exceed $14,382,247.13.
Funds are available in Account 401-50000-645700.
Requested, Catherine A. O’Connor, Director of Engineering, WSS:KMF
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 August 6, 2020
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