TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 18, 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 not to exceed $960,251.00, from an amount of $27,996,717.66 to an amount not to exceed $28,956,968.66, Account 401-50000-645650, Purchase Order 5000458 (Deferred from the December 4, 2008 Board Meeting)
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Dear Sir:
On September 22, 2005, the Board of Commissioners authorized 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 November 21, 2008, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in the amount of $2,152,317.66 from the original amount awarded of $25,844,400.00. The current contract value is $27,996,717.66. The prior approved change orders reflect a 8.33% increase to the original contract value.
Work under the contract includes the construction of a central boiler facility at the Calumet Water Reclamation Plant. Although this proposed work is not in the scope of work for the central boiler facility, the Engineering Department recommends that the remaining scope of work on the recently forfeited Contract 00-275-2V (REBID), New Research & Development Lab Building, should be completed as additional work under this contract. Due to the nature of the work remaining in Contract 00-275-2V, the Engineering Department recommends that the work be done on a time & material (T&M) basis. The work includes completion of the punch list, troubleshooting, furnishing Maintenance & Operation Manuals, system training, insurance, bond and conducting the 60-day operations test. In addition to the above T&M work, it is expected that other additional work is known to be required. These items will be handled by the established change order process and brought to the Board of Commissioners for approval as they are defined. It is the intent to back charge these costs to the funds allocated per the contract. Any shortfall on the back charge to those contract funds will be made up by Safeco Surety under the bond for the project.
The contractor submitted an extra work cost proposal (COR-275) for T&M work in an amount not to exceed $960,251.00. The engineer reviewed the proposal, found it to be reasonable, and stated via file letter 719, 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 Purchasing Agent to execute a change order to increase Contract 03-296-3M in an amount of $960,251.00 (3.43% of the current contract value) from an amount of $27,996,717.66 to an amount not to exceed $28,956,968.66.
Funds are available in Account 401-50000-645650.
Requested, Joseph P. Sobanski, Chief Engineer, KAK:CH
Recommended, Darlene A. LoCascio, Purchasing Agent
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Purchasing
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for December 18, 2008
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