TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 17, 2011
COMMITTEE ON PROCUREMENT
Mr. David St Pierre, Executive Director
Title
Authority to increase Contract 93-232-2M Hydraulic Improvements at the Calumet Water Reclamation Plant, to IHC Construction/FHP Tectonics, Joint Venture, in an amount of $31,008.31, from an amount of $123,707,738.30, to an amount not to exceed $123,738,746.61, Accounts 401-50000-645650 and 645750, Purchase Order 5000623
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Dear Sir:
On October 19, 2006, the Board of Commissioners passed an order authorizing the Director of Procurement and Materials Management to award Contract 93-232-2M Hydraulic Improvements at the Calumet Water Reclamation Plant, to IHC Construction/FHP Tectonics, Joint Venture, in an amount not to exceed $120,890,000.00. The scheduled contract completion date was January 13, 2011.
As of November 4, 2011, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in the amount of $2,817,738.30 from the original amount awarded of $120,890,000.00. The current contract value is $123,707,738.30. The prior approved change orders reflect a 2.33% increase to the original contract value.
Item 1: A credit in the amount of $14,916.00 to provide exhaust fans on Heat Recover Units (HRU) 4, 5, and 6 with 30 HP motors in lieu of the specified 40 HP motors. The contractor submitted a substitution request to provide 30 HP motors in lieu of the specified 40 HP motors. The engineer reviewed the request and found it acceptable since the smaller 30 HP motors are adequately sized to provide the required air flow, and operate more efficiently than the 40 HP motors. The contractor submitted a cost proposal (CCO-100) for a credit in the amount of $14,916.00. The engineer reviewed the proposal, found it to be reasonable, and stated via file letter 1320, that the Engineering Department would recommend its approval.
Item 2: An extra in the amount of $76,893.64 to modify the vacuum priming system for the raw sewage pumps. The contract documents specified computer controls which shutdown the vacuum priming pumps and isolate the pumps from backflow of raw sewage. The Maintenance and Operations Department requested additional mechanical protection to ensure that the vacuum priming pumps were protected from backflow of raw sewage. The work includes fabricating and installing a custom water/debris separator upstream of the vacuum priming pumps and furnishing and installing additional piping, fittings, and valves. Also, the work includes furnishing and installing additional control instrumentation and wiring, and providing modifications to the DCS. The contractor submitted a cost proposal (CCO-099) for an extra in the amount of $76,893.64. The engineer reviewed the proposal, found it to be reasonable, and stated via file letter 1328 that the Engineering Department would recommend its approval.
Item 3: An extra in the amount of $219,030.67 to furnish and install a new manhole and piping to reroute an existing 24" sewer discharging into the South Park Interceptor (SPI). In order to perform the contractual work required to direct all the raw sewage flow to the new pump station, flow to the SPI must be isolated. During isolation attempts, the 24” sewer, not shown in the contract, was discovered to be an uncontrolled source of flow into the SPI. In order to effectively isolate the SPI, the flow from the 24" sewer had to be re-routed to the Calumet 17A overflow bypass chamber. The work is completed. Before the engineer’s determination on the change order, the contractor proceeded at his own risk with this work as determined in his own best interest in executing the overall contract. The engineer has now concluded that this work is additional scope to the contract. The contractor submitted a cost proposal (CCO-084) for an extra in the amount of $219,030.67. The engineer reviewed the proposal, found it to be reasonable, and stated via file letter 1325, that the Engineering Department would recommend its approval.
The above three change orders are in compliance with the Illinois Criminal Code since the changes are due to circumstances not reasonably foreseeable at the time the contract was signed, and are in the best interest of the District.
Item 4: A credit in the amount of $250,000.00 to offset the estimated additional operational costs incurred over the life of the new raw sewage pump motors. The 13.2kV motors are extremely large and are custom built. The new motors were tested in a motor shop test facility, and the tests indicated that the motors were slightly less efficient than the minimum required efficiency that was specified. To account for the slightly less efficient motors and offset the additional energy costs that would potentially be realized over the life of the meters, an appropriate credit proposal was required as a condition of acceptance of the motors. The contractor submitted a cost proposal (CCO-086) for a credit in the amount of $250,000.00. The engineer reviewed the proposal, found it to be reasonable, and stated via file letter 1333, 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.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute four change orders to increase Contract 93-232-2M in an amount of $31,008.31 (0.03% of the current contract value) from an amount of $123,707,738.30 to an amount not to exceed $123,738,746.61.
Funds are available in Accounts 401-50000-645650 and 645750.
Requested, Kenneth A. Kits, Director of Engineering, TEK:ECB
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 November 17, 2011
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