TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 15, 2009
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase purchase order and amend the agreement with CH2M Hill, Inc. for additional engineering services for developing the Calumet-Sag Channel Detailed Watershed Plan - Phase B, in an amount of $86,553.00, from an amount of $2,235,260.00, to an amount not to exceed $2,321,813.00, Account 501-50000-601410, Purchase Order 3044706
Body
Dear Sir:
On May 17, 2007, the Board of Commissioners (Board) authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with CH2M Hill, Inc. (CH2M), for the development of the Calumet-Sag Channel Detailed Watershed Plan (DWP) - Phase B, in an amount not to exceed $1,971,951.00. On January 8, 2009, the Board of Commissioners authorized an amendment to the agreement. The amended agreement called for the completion of all work by April 17, 2009. This agreement is still in progress.
As of October 1, 2009, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $263,309.00 from the original amount awarded of $1,971,951.00. The current contract value is $2,235,260.00. The prior change orders reflect a 13.35% increase to the original contract value.
The original scope of the agreement included identification of existing regional stormwater management concerns, development of alternatives to address those concerns, and evaluation of the alternatives to determine those most effective in addressing the needs of the Calumet-Sag Channel watershed. The original scope also included support services for a stormwater management database. This database was implemented to standardize the data management across all the watershed plans developed under the Stormwater Management Program. CH2M assisted the Engineering Department with the development and implementation of this database, which provides a process for calculating the costs and benefits of alternatives developed in the DWPs and produces standardized reports. Development and implementation of this database was performed under the Calumet-Sag Channel DWP - Phase A contract. Ongoing support for the database was provided under the Calumet-Sag Channel DWP - Phase B contract.
During the development of the Calumet-Sag Channel DWP, CH2M staff was available to provide regular maintenance on the database, assist with database upgrades, and provide user support to the District and to the other DWP consultants. While CH2M has completed the final report for the Calumet-Sag Channel DWP, work on the remaining DWPs is ongoing, with two DWPs’ anticipated completion by the end of 2009 and the remaining three DWPs’ anticipated completion by the end of 2010. It is anticipated that CH2M's assistance with user support and database maintenance will be needed throughout the duration of DWP development to facilitate the work of the DWP consultants. There are not sufficient funds or time available under the current terms of the agreement to allow CH2M to perform these additional tasks.
CH2M Hill, Inc. has extensive experience in resolving technical difficulties related to the stormwater database and they are a valuable resource for our other DWP consultants that currently use the database. CH2M has also identified several modifications that will introduce more efficiency into the database and ultimately improve the accuracy of work requiring use of the database. The Engineering Department believes that the District will benefit by allowing CH2M to provide continued support and development on the database, since doing so will further standardize the required data processing for the remaining DWPs.
In order to provide these services, CH2M requires a time extension of 622 days. The new completion date based on the schedule for completion of the remaining DWPs would be December 30, 2010.
The Engineering Department has negotiated with CH2M an increase in the amount of $86,553.00 for the change in scope.
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 agreement 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 a change order to increase the purchase order and amend the agreement in an amount of $86,553.00 (3.87% of the current contract value), from an amount of $2,235,260.00, to an amount not to exceed $2,321,813.00, and to approve a time extension of 622 days.
Funds for the 2009 expenditure in the amount of $26,000.00 are available in Account 501-50000-601410. The estimated expenditure for 2010 is $60,553.00. Funds for the 2010 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for that year.
Requested, Joseph P. Sobanski, Director of Engineering, WSS:MD
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
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