TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 16, 2020
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to increase Contract 11-186-3F, Addison Creek Reservoir, Bellwood, Illinois, to IHC Construction Companies, L.L.C., in an amount of $5,995,110.72, from an amount of $69,670,702.29 to an amount not to exceed $75,665,813.01, Account 501-50000-645620, Purchase Order 4000068
Body
Dear Sir:
On January 24, 2019, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 11-186-3F, Addison Creek Reservoir, Bellwood, Illinois to IHC Construction Companies L.L.C., in an amount not to exceed $63,280,000.00, plus a five (5) percent allowance for change orders in an amount of $3,164,000.00, for a total amount not to exceed $66,444,000.00. The scheduled contract completion date is March 21, 2021.
As of June 19, 2020, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount $6,390,702.29 from the original amount awarded of $63,280,000.00. The current contract value is $69,670,702.29. The prior approved change orders reflect a 10.10 percent increase to the original contract value.
On April 16, 2020, change order COR-4, Removal of Hazardous Waste Soils, was approved for an approximate 6,500 cubic yards of removal, handling, and legal off-site disposal of chlorinated solvent-impacted soils in an amount not to exceed $6,390,702.29. This estimated quantity of work for COR-4 was based on an environmental investigation performed upon encountering these chemicals during reservoir excavation work. However, the current cost projection for the actual quantity and concentration of contamination is anticipated to go above the approved value of COR-4 and additional funds are needed to complete the removal, handling, and legal off-site disposal of all soils which may be categorized as hazardous waste once excavated and profiled for disposal.
On July 1, 2020, the contractor submitted a change order request in an amount not to exceed $5,995,110.72 for the removal, handling, and legal off-site disposal of an additional 6,500 cubic yards of chlorinated solvent-impacted soils. The engineer reviewed the cost proposal and found it to be reasonable for the work described. The payments for the work under this change order will be paid based upon actual cost incurred and proper documentation submitted by the contractor and approved by District.
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 11-186-3F in an amount of $5,995,110.72 (8.60 percent of the current contract value), from an amount of $69,670,702.29, to an amount not to exceed $75,665,813.01.
Funds are available in Account 501-50000-645620.
Requested, Catherine A. O’Connor, Director of Engineering, WSS:JK
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 July 16, 2020
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