TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 5, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to increase Contract 07-168-3P Scum Concentration, Centrifuge Building, Preliminary & Imhoff Tanks, Elevator Improvements, Diffuser Plates and Trailer Replacement, Stickney Service Area, LASMA, to IHC Construction Companies, LLC, in an amount not to exceed $244,530.00, from an amount of $22,535,836.55, to an amount not to exceed $22,780,366.55, Accounts 401-50000-645750 and 645780, Purchase Order 5001198
Body
Dear Sir:
On September 2, 2010, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 07-168-3P Scum Concentration, Centrifuge Building, Preliminary & Imhoff Tanks, Elevator Improvements, Diffuser Plates and Trailer Replacement, Stickney Service Area, LASMA to IHC Construction Companies, LLC, in an amount not to exceed $23,544,400.00. The scheduled contract completion date is September 16, 2012.
As of December 16, 2011, the attached list of change orders has been approved. The effect of these change orders resulted in a decrease in an amount of $1,008,563.45 from the original amount awarded of $23,544,400.00. The current contract value is $22,535,836.55. The prior approved change orders reflect a 4.28% decrease to the original contract value.
Item 1: An extra in the amount of $118,030.00 to replace six-inch air piping. The contract included the replacement of air drop piping in Battery C on a unit price basis. After work had commenced, it was discovered that the contract documents did not reflect the presence of an additional row of diffuser plates that were added after the battery was built, or the revised configuration of the air drop piping to this row. To allow proper replacement of the air drop piping, it was determined that if the drop header piping needs replacement, then the additional piping extending to the second row of diffuser plates would also need to be replaced. This work will be performed on an as-needed basis and paid for on a unit price basis under the direction of the engineer. The contractor submitted a revised cost proposal (CCO-018) for an extra in the amount of $4,721.20 per unit price item with an extension not to exceed 25 units, for a total extra in the amount of $118,030.00. The engineer reviewed the proposal and found it reasonable and stated via correspondence 415, that the Engineering Department would recommend its approval.
This change order is in compliance with the Illinois Criminal Code since the change is germane to the contract.
Item 2: An extra in the amount of $126,500.00 to repair concrete spalls on diffuser plates in Battery C. This type of repair was previously approved by the Board on July 14, 2001, to be performed on a unit price basis for 1200 units in Battery D. During the shutdown of aeration tank 1 in Battery C, it was revealed that numerous concrete spalls existed on the diffuser plate holders. Repairs to the diffuser plate holders are necessary in order to properly secure the new diffuser plates. The condition of the diffuser plate holders could not have been determined during design as the spalling is occurring inside the plate holders. The contractor submitted a cost proposal (CCO-021) for an extra in the amount of $115.00 per unit price item with an extension not to exceed 1100 units, for a total extra cost in amount not to exceed $126,500.00. The engineer reviewed the proposal, found it reasonable and stated via correspondence 404, 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 Director of Procurement and Materials Management to execute the above two change orders to increase Contract 07-168-3P in an amount of $244,530.00 (1.09% of the current contract value) from an amount of $22,535,836.55 to an amount not to exceed $22,780,366.55.
Funds are available in Accounts 401-50000-645750 and 645780.
Requested, Kenneth A. Kits, Director of Engineering, TEK:GR
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 January 5, 2012
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