TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 18, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Authority to increase Contract 04-825-3M, Install New Blower No. 2 at Stickney Water Reclamation Plant and Replace Blower Nos. 1 and 7 at North Side Water Reclamation Plant, to Meccon Industries, Inc., in an amount of $26,540.62, from an amount of $5,341,121.29 to an amount not to exceed $5,367,661.91, Account 401-50000-645650, Purchase Order 5000577
Body
Dear Sir:
On June 15, 2006, the Board of Commissioners authorized the Purchasing Agent to award Contract 04-825-3M, Install New Blower No. 2 at Stickney Water Reclamation Plant and Replace Blower Nos. 1 and 7 at North Side Water Reclamation Plant, to Meccon Industries Inc., in an amount not to exceed $5,098,000.00. The contract terms called for the completion of all work by August 9, 2007. This contract is still in progress.
As of December 5, 2008, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $243,121.29 from the original amount awarded of $5,098,000.00. The current contract value is $5,341,121.29. The prior approved change orders reflect a 4.77% increase to the original contract value.
The contract involves the installation of a new blower at the Stickney Water Reclamation Plant, which requires modifications of the existing air mains to allow for the installation of two saddle transition pieces. During the construction, it was found that the existing 84” butterfly valves and dresser couplings in the areas of the saddles were uninsulated, due to the insulation having been removed at some point in the past. To minimize sound and heat transfer from the air mains to the Pump and Blower House interior, it was decided it would be prudent to insulate these areas, so that the entire pipe runs would now be insulated.
The contractor submitted a cost proposal (COR-037) in the amount of $71,071.00. The engineer reviewed the proposal, found it unacceptable and offered a counterproposal in the amount of $26,540.62 via file letter 287, which has been accepted by the contractor and the Engineering Department recommends its approval.
The 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 Purchasing Agent to execute a change order to increase Contract 04-825-3M in an amount of $26,540.62 (0.50% of the current contract value) from an amount of $5,341,121.29 to an amount not to exceed $5,367,661.91.
Funds are available in Account 401-50000-645650.
Requested, Joseph P. Sobanski, Chief Engineer, TEK:JAW
Recommended, Darlene A. LoCascio, Purchasing Agent
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Purchasing
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for December 18, 2008
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