TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 5, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Authority to increase Contract 03-296-3M Installation of Central Boiler Facility at Calumet Water Reclamation Plant, to IHC Construction Companies, LLC, in an amount of $2,169.40, from an amount of $27,675,602.47 to an amount not to exceed $27,677,771.87, Account 401-50000-645650, Purchase Order 5000458
Body
Dear Sir:
On September 22, 2005, the Board of Commissioners passed an order authorizing the Purchasing Agent to award Contract 03-296-3M, to IHC Construction Companies, LLC, in an amount not to exceed $25,844,400.00. The contract terms called for the completion of all work by April 20, 2008. This contract is still in progress.
As of May 16, 2008, the attached list of Changes Orders has been approved. The effect of these Changes Orders resulted in an increase in the amount of $1,831,202.47 from the original amount awarded of $25,844,400.00. The current contract value is $27,675,602.47. The approved Changes Orders reflect a 7.09% increase to the original contract value
Item 1: A credit in the amount of $22,469.04 to delete four Flue Gas Recirculation (FGR) systems and reduce the fan motor and variable frequency drive (VFD) sizes for each of the four boilers. The original contract documents called for four FGR systems and larger fan motors and VFDs for the boilers at the Calumet WRP. The contractor supplied boilers with burners that were efficient enough to meet the emissions requirements without the FGR systems, larger fans, and VFDs. Therefore, the District requested a credit for not installing the aforementioned equipment. The contractor initially submitted a “no cost change” proposal (COR-018). The District rejected their initial proposal via File Letter 465. Subsequently, the contractor submitted a credit proposal (COR-018B) in the amount of $22,469.04. The Engineer reviewed the proposal, found it reasonable, and stated via file letter 623 that the Engineering Department would recommend its approval.
Item 2: An extra in the amount of $11,592.44 to provide four (4) motor actuated smoke dampers and related power and control wiring, and DCS programming in the supply and return ductwork for the Control, Electrical and Break Rooms. The motorized smoke dampers are necessary to prevent the migration of smoke from one room to other rooms and prevent the unintentional discharge of the fire suppression agent. These smoke dampers were not specified in the original contract documents. The contractor submitted a cost proposal (COR-054) in the amount of $16,461.50. The Engineer reviewed the proposal, found it unacceptable and offered a counterproposal in the amount of $11,592.44 via file letter 608, which has been accepted by the contractor and the Engineering Department recommends its approval.
Item 3: An extra in the amount of $13,046.00 to provide five (5) smoke detectors and related power and control wiring, and DCS programming. The smoke detectors are necessary to shutdown the AHU fans in the event of smoke in the ductwork. These smoke detectors were not specified in the original contract documents. The contractor submitted a cost proposal (COR-055) in the amount of $15,019.40. The Engineer reviewed the proposal, found it unacceptable and offered a counterproposal in the amount of $12,414.56 via file letter 628. Subsequently, the contractor submitted a revised cost proposal (COR-055A) in the amount of $13,046.00. The Engineer reviewed the proposal, found it reasonable, and stated via file letter 628 that the Engineering Department would recommend its approval.
All three of these Change Orders are in compliance with the Illinois Criminal Code since the Change Orders are germane to the contract.
It is hereby requested that the Board of Commissioners authorize the Purchasing Agent to execute three Change Orders, one for a credit in an amount of $22,469.04 and two increases in the amounts of $11,592.44 and $13,046.00, consisting of an increase to Contract 03-296-3M in a total amount of $2,169.40 (less than .01% of the current contract value) from an amount of $27,675,602.47 to an amount not to exceed $27,677,771.87.
Funds are available in Account 401-50000-645650.
Requested, Joseph P. Sobanski, Chief Engineer, JPS:TEK:JAW:CN
Recommended, Darlene A. LoCascio, Purchasing Agent
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Purchasing
ORDERED passed by affirmative roll call vote of a majority of the Commissioners present this June 5, 2008. Approved, President Terrence J. O’Brien
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