TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 19, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to increase Contract 01-198-AD Demolition of Sludge Disposal Building and Rehabilitation of Pump and Blower House and Coarse Screen Building at the Stickney Water Reclamation Plant, to IHC Construction Companies, LLC, in an amount of $89,593.47, from an amount of $30,924,966.63, to an amount not to exceed $31,014,560.10, Accounts 101-50000-612680, 401-50000-645680, and 645780, Purchase Order 5000961
Body
Dear Sir:
On December 18, 2008, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 01-198-AD Demolition of Sludge Disposal Building and Rehabilitation of Pump and Blower House and Coarse Screen Building at the Stickney Water Reclamation Plant (SWRP), to IHC Construction Companies, LLC, in an amount not to exceed $28,490,000.00. The scheduled contract completion date was February 1, 2011.
As of January 6, 2012, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in the amount of $2,434,966.63 from the original amount awarded of $28,490,000.00. The current contract value is $30,924,966.63. The prior approved change orders reflect an 8.55% increase to the original contract value.
On April 28, 2011, Maintenance and Operations (M&O) Electrical Operators (EOs) reported a fault on transformer 5S in the Pump and Blower Building at the SWRP. Upon investigation by the EOs it was reported that they observed smoke in the switchgear room. Transformer 5S was not part of the contractor’s original work but was physically located on the contractor's jobsite. The transformer failed and several attempts to re-energize it were unsuccessful. Because this transformer is critical for M&O operations, the contractor was directed to replace it immediately. The transformer was 30 years old and it was later determined that the major factor contributing to the failure was the age of the transformer. This work has been completed. The contractor submitted an extra work claim (CCO-062) in the amount of $89,593.47 for cost associated with the replacement of the transformer. The engineer reviewed the supplemental claim information, found it to be reasonable, and stated via correspondence 843, 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 a change order to increase Contract 01-198-AD in an amount of $89,593.47 (0.29% of the current contract value) from an amount of $30,924,966.63 to an amount not to exceed $31,014,560.10.
Funds are available in Accounts 101-50000-612680, 401-50000-645680, and 645780.
Requested, Kenneth A. Kits, Director of Engineering, MVL:JFK
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 19, 2012
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