TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 19, 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 $33,389.40, from an amount of $27,677,771.87, to an amount not to exceed $27,711,161.27, 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 June 6, 2008, the attached list of Change Orders has been approved. The effect of these Change Orders resulted in an increase in the amount of $1,833,371.87 from the original amount awarded of $25,844,400.00. The current contract value is $27,677,771.87. The approved Change Orders reflect a 7.09% increase to the original contract value.
The contract involves the construction of a new central boiler building. This building contains exhaust fans and louvers for ventilation. During construction, it was determined that it would be beneficial to provide automatic controls to turn on the fans and louvers in the event of a leak of natural gas or digester gas. The system as designed required manual operation of the fans and louvers upon alarm. The automatic controls will enhance the safety of the building.
The contractor submitted a cost proposal (COR-052) in the amount of $36,271.40. The Engineer reviewed the proposal, found it unacceptable and offered a counterproposal in the amount of $28,282.69. The contractor submitted a revised cost proposal (COR-052B) in the amount of $33,389.40. The Engineer reviewed the proposal, found it reasonable, and stated via file letter 643 that the Engineering Department would recommend its approval.
The Change Order is in compliance with the Illinois Criminal Code, since the change order is germane to the original contract.
It is hereby requested that the Board of Commissioners authorize the Purchasing Agent to execute a change order to increase Contract 03-296-3M in an amount of $33,389.40 (0.12% of the current contract value) from an amount of $27,677,771.87 to an amount not to exceed $27,711,161.27.
Funds are available in Account 401-50000-645650.
Requested, Joseph P. Sobanski, Chief Engineer, JPS:TEK:GG
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 19, 2008. Approved, President Terrence J. O’Brien
Attachment