TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 5, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to increase Contract 07-168-3P Scum Concentration, Centrifuge Building, Preliminary & Imhoff Tanks, Elevator Improvements, Diffuser Plates and Trailer Replacement, Stickney Service Area, LASMA, to IHC Construction Companies, LLC in an amount of $252,186.50, from an amount of $23,020,149.52, to an amount not to exceed $23,272,336.02, Accounts 401-50000-645750 and 645780, Purchase Order 5001198
Body
Dear Sir:
On September 2, 2010, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 07-168-3P Scum Concentration, Centrifuge Building, Preliminary & Imhoff Tanks, Elevator Improvements, Diffuser Plates and Trailer Replacement, Stickney Service Area, LASMA to IHC Construction Companies, LLC, in an amount not to exceed $23,544,400.00. The scheduled contract completion date is September 16, 2012.
As of March 16, 2012, the attached list of change orders has been approved. The effect of these changes orders resulted in a decrease in an amount of $524,250.48, from the original amount awarded of $23,544,400.00. The current contract value is $23,020,149.52. The prior approved change orders reflect a 2.26% decrease to the original contract value.
Item 1: On September 1, 2011, the Board of Commissioners authorized a directive change order for a net credit amount of $213,865.36 (CCO-005) for the elimination of contract work associated with contact tanks Nos. 1-12. The contractor protested the amount of the directed change order and provided additional information justifying an adjusted settlement credit amount of $166,500.00. This represents a difference of $47,365.36 from the directed CCO-005. After reviewing all of the supplemental information provided by the contractor, the engineer found merit in the contractor's position. The engineer stated, via correspondence 426, that the Engineering Department would recommend approval of CCO-025, an extra change order amount of $47,365.36 for settlement of deductive CCO-005.
Item 2: On September 15, 2011, the Board of Commissioners authorized a directive change order for a net credit amount of $1,228,203.13 (CCO-006) for the elimination of work in Aeration Tank Nos. 6-8 and the replacement of airmain expansion joints in manholes at Battery C. The contractor protested the amount of the directed change order and provided additional information justifying an adjusted settlement credit amount of $1,023,381.99. This represents a difference of $204,821.14 from the directed CCO-006. After reviewing all of the supplemental information provided by the contractor, the engineer found merit in the contractor's position. The engineer stated, via correspondence 428, that the Engineering Department would recommend approval of CCO-026, an extra change order amount of $204,821.14 for settlement of deductive CCO-006.
The above two change orders are in compliance with the Illinois Criminal Code since the changes are 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 two change orders to increase Contract 07-168-3P in an amount of $252,186.50 (1.10% of the current contract value), from an amount of $23,020,149.52, to an amount not to exceed $23,272,336.02.
Funds are available in Accounts 401-50000-645750 and 645780.
Requested, Kenneth A. Kits, Director of Engineering, MVL:RL
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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