TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 6, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Authority for Change Orders on Contract 03 296 3M, Installation of Central Boiler Facility, Calumet WRP, with IHC Construction Companies, LLC for Items: 1. an extra of $20,413.52, 2. a net extra of $17,585.70, and 3. an extra of $13,582.91 resulting in an increase to the contract value from $27,467852,803.61 to $27,519852,385.74, Account 401-50000-645650, Purchase Order 50000458
Body
Dear Sir:
Authorization is requested to issue Change Orders to IHC Construction Companies, LLC for the cost of labor, materials Mechanical Corporation and equipment necessary for the following contract work at the Calumet WRP.
Item 1: An extra in the amount of $20,413.52 to remove, clean and replace items affected by sludge overflow from Digester No. 4, which caused disruptions to the construction work of the Central Boiler Facility. The circumstances said to necessitate the change in performance were not reasonable foreseeable at the time the contract was signed.
Item 2: A net extra in the amount of $17,585.70 to increase the quantity of fiber optic cables from one 12-fiber cable to two 24-fiber cables. The cables will connect the Boiler Control Room to the Digester Control Room. The Maintenance & Operations Department is performing a plant-wide upgrade to the Distribution Control System communication network; therefore they requested a change from one 12-fiber cable to two 24-fiber cables. The Change Order is in the best interest of the District and authorized by the law.
Item 3: An extra in the amount of $13,582.91 to include an exhaust fan in the assembly of AHU-5. AHU-5 was specified as an economizer, but without an exhaust fan. Given the location of the AHU and size of the supply fan, an exhaust fan is required to maintain the air balance in the control room and electrical room when the unit is in economizer mode. The Change is germane to the original contract as signed.
For Item 1, the extra work was monitored on a time and material basis. Subsequently, the contractor submitted a cost proposal (COR-027) in the amount of $20,413.52. The Engineer reviewed the proposal, found it reasonable, and stated via file letter 449 that the Engineering Department would recommend its approval.
For Item 2, the contractor submitted a cost proposal (COR-045) in the amount of $25,325.18 and a credit in the amount of $6.089.48 for a net extra of $19,235.70. The Engineer found the proposal amount excessive and discussed the scope of work and the cost with the contractor. Subsequently, the contractor submitted a revised proposal (COR-045A) in amount of $23,675.18 and a credit of $6,089.48 for a net extra of $17,585.70. The Engineer reviewed the proposal, found it reasonable, and stated via file letter 553 that the Engineering Department would recommend its approval.
For Item 3, the contractor submitted a cost proposal (COR-043) in the amount of $13,864.14. The Engineer found the proposal amount excessive and offered a counterproposal in the amount of $13,582.91 via file letter 561, which was accepted by the contractor.
The subject contract was awarded on September 22, 2005 for $25,844,400.00. As of February 22, 2008 the approved value of gross increases and decreases equals a net total increase of $1,623,40310155,912.374.71 (2.81.61 (6.281.77% of the award value); and the resulting change order, including this change order, equals a net total increase of $1,674,985.74101 (6.481.77% of the award value).
In view of the above, it is recommended that the Board of Commissioners authorize the Change Orders for an extra in the amount of $20,413.52, for a net extra in an amount of $17,585.70 and for an extra in the amount of $13,582.91.
If further clarification is required, please advise the undersigned.
Requested, Joseph P. Sobanski, Chief Engineer, TK:JW:CN:AT
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 March 6, 2008. Approved, President Terrence J. O’Brien
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