TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 18, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Authority to increase purchase order and amend the agreement with PMA Consultants of Illinois LLC, for additional claims services in an amount of $75,000.00, from an amount of $70,000.00, to an amount not to exceed $145,000.00, Account 401-50000-601170, Purchase Order 3045610
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Dear Sir:
On April 5, 2007, the Board of Commissioners authorized the Purchasing Agent to issue three purchase orders for an amount not to exceed $10,000.00 each and enter into an agreement with PMA Consultants of Illinois LLC (PMA), for professional services in connection with claims evaluation and/or assistance in litigation or potential litigation on three projects.
Three purchase orders were issued on one consulting contract in order to segregate the costs spent on claims work for each construction contract. The three purchase orders and construction contracts were: (PO 3045609) Contract 97-362-lS, O'Hare TARP Drop Shaft 5 Rehabilitation, Des Plaines; (PO 3045610) Contract 00-275-2V, New Research & Development Lab Building, Calumet Water Reclamation Plant; and (PO 3045612) Contract 01-353-2M, Rehabilitation of Influent Pump Station, Kirie Water Reclamation Plant. The time for completion of the work was not fixed due to the uncertainties of the claims and litigation process and the Board Letter advised that it was anticipated that one or all of the purchase orders may have to be increased in the future.
As of December 4, 2008, a change order in the amount of $60,000.00 had been approved on PO 3045610, with PMA for claims evaluation and/or assistance in potential litigation for Contract 00-275-2V, New Research & Development Lab Building, Calumet Water Reclamation Plant. The effect of this change order is an increase in an amount of $60,000.00 from the original PO amount of $10,000.00. The current contract value is $70,000.00. The prior approved change orders reflect a 600% increase to the original contract value.
The contractor submitted a claim for additional contract time after the forfeiture of Contract 00-275-2V. The claim is based on a detailed chronology of construction based on the contractor’s records and the contractor’s claim needs to be evaluated against District field records by a firm (PMA) specializing in forensic claims analysis.
This change order is in compliance with the Illinois Criminal Code since the change is germane to the contract.
It is hereby recommended that the Board of Commissioners authorize the Purchasing Agent to execute a change order to increase the purchase order and amend the agreement in an amount of $75,000.00 (107.14% of the current contract value) from an amount of $70,000.00 to an amount not to exceed $145,000.00.
Funds are available in Account 401-50000-601170.
Requested, Joseph P. Sobanski, Chief Engineer, JPS:RML
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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