TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 15, 2009
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase Contract 04-294-3M Calumet TARP Isolation and Pump Station Improvements, Calumet Water Reclamation Plant, to Kenny Construction Company, in an amount of $33,944.40, from an amount of $60,136,354.22, to an amount not to exceed $60,170,298.62, Account 401-50000-645600, Purchase Order 5000309
Body
Dear Sir:
On December 2, 2004, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 04-294-3M Calumet TARP Isolation and Pump Station Improvements, Calumet Water Reclamation Plant, to Kenny Construction Company, in an amount not to exceed $57,126,700.00. The contract terms called for the completion of all work by June 23, 2008. This contract is still in progress.
As of October 2, 2009, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $3,009,654.22 from the original amount awarded of $57,126,700.00. The current contract value is $60,136,354.22. The approved change orders reflect a 5.27% increase to the original contract value.
Item 1: An extra in the amount of $22,141.40 to test four (4) hydraulically operated bonnet-gate valves. The contract includes the installation of these gate valves, which were furnished under Contract 99-269-EM. The testing of the gate valves was not specified in either the furnish and deliver contract or the installation contract. In order to ensure correct installation and proper operation of these gate valves, it is necessary to test them. The contractor submitted a cost proposal (COR-091) in the amount of $22,450.91. The engineer reviewed the proposal, and offered a counterproposal via file letter 981 in the amount of $20,625.05. The contractor submitted a revised cost proposal in the amount of $22,141.40. The engineer reviewed the proposal, found it reasonable, and stated via file letter 1014, that the Engineering Department would recommend its approval.
Item 2: An extra in the amount of $11,803.00 to replace two existing oil buffers as part of the refurbishment of the existing TARP elevator. The contract includes the refurbishment of this elevator. However, during the refurbishing process, one of the two existing oil buffers, which act to cushion the impact of a falling elevator, failed and needed to be replaced. In addition, since the other buffer was the same age, a decision was made to replace it. The contractor submitted a cost proposal (COR-097) in the amount of $11,803.00. The engineer reviewed the proposal, found it reasonable, and stated via file letter 1003 that the Engineering Department would recommend its approval.
The above two change orders are 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 two change orders to increase Contract 04-294-3M in an amount of $33,944.40 (0.06% of the current contract value), from an amount of $60,136,354.22, to an amount not to exceed $60,170,298.62.
Funds are available in Account 401-50000-645600.
Requested, Joseph P. Sobanski, Director of Engineering, TEK:JAW
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 15, 2009
Attachment