TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 5, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to decrease Contract 07-163-3M (Re-Bid) R & D Building HVAC Improvements, Stickney Water Reclamation Plant, to Path-Milhouse, Joint Venture, in an amount of $26,311.92, from an amount of $8,950,767.77, to an amount not to exceed $8,924,455.85, Accounts 401-50000-645680 and 645780, Purchase Order 5001056
Body
Dear Sir:
On July 9, 2009, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 07-163-3M (Re-Bid) R & D Building HVAC Improvements, Stickney Water Reclamation Plant, to Path-Milhouse, Joint Venture, in an amount not to exceed $8,253,300.00. The scheduled contract completion date was April 25, 2011.
As of March 16, 2012, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in the amount of $697,467.77 from the original amount awarded of $8,253,300.00. The current contract value is $8,950,767.77. The prior approved change orders reflect an 8.45% increase to the original contract value.
The contract includes HVAC improvement work at the Stickney Monitoring & Research Laboratory Building. After reviewing the contractor's initial coordination drawings, contractor requests for information, and conversations with the Maintenance and Operations Department, the engineer determined that upper level Monitoring and Research (M&R) ductwork modifications would be required so that connections could be made to the modified roof ductwork, as provided in CCO-024, previously approved by the Board of Commissioners on August 11, 2011, and to assist in energy conservation throughout the M&R lab by eliminating and consolidating several of the existing ductwork systems, while utilizing the revised roof ductwork plan. After approval of CCO-024, it was discovered that this work below the roof line was inadvertently omitted from the scope of work for CCO-024 and therefore, this change order includes the required work. The contractor submitted a third revision of their cost proposal (CCO-042) for an extra in the amount of $159,157.87 and a credit in the amount of $141,729.87 for a net extra in the amount of $17,428.00. The engineer reviewed the cost proposal and found it unreasonable for the work described. The engineer negotiated in good faith with the contractor to achieve a consensus and was not able to come to an agreement. As a result, the engineer issued correspondence 950, stating that the engineer is exercising his power to make a final and binding determination under Article 8 of the General Conditions concerning this work and that he would recommend approval of an extra in the amount of $125,794.35 and a credit in the amount of $152,106.27 for a net credit in the amount of $26,311.92 to the Board of Commissioners.
The above change order is in compliance with the Illinois Criminal Code since the change is germane to the contract.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a change order to decrease Contract 07-163-3M (Re-Bid) in an amount of $26,311.92 (0.29% of the current contract value), from an amount of $8,950,767.77, to an amount of $8,924,455.85.
Funds will be restored to Accounts 401-50000-645680 and 645780.
Requested, Kenneth A. Kits, Director of Engineering, TEK:JAW
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 April 5, 2012
Attachment