TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 16, 2016
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to increase Contract 09-176-3P Sludge Thickening Facilities, Stickney Water Reclamation Plant, to McHugh Construction in an amount of $3,050,437.89, from an amount of $166,800,805.23, to an amount not to exceed $169,851,243.12, Account 401-50000-645650, Purchase Order 5001115
Body
Dear Sir:
On March 18, 2010, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 09-176-3P Sludge Thickening Facilities, Stickney Water Reclamation Plant (WRP), to McHugh Construction, in an amount not to exceed $162,232,344.00. The scheduled contract completion date is November 11, 2016.
As of June 3, 2016, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $4,568,461.23 from the original amount awarded of $162,232,344.00. The current contract value is $166,800,805.23. The prior approved change orders reflect a 2.82% increase to the original contract value.
This project provides improved sludge thickening to the Stickney WRP by separating the sludge streams within the plant, and thickening each by the most efficient and effective method, as well as improving water distribution, providing electrical upgrades and other work. Work completed includes the replacement of sixteen 30-year old pre-digestion sludge centrifuges, the construction of eight 80-foot diameter primary sludge concentration tanks with bio-filter odor control, the construction of pump stations for Waste Activated sludge, O’Brien WRP sludge, Southwest Primary sludge, a sludge blending tank, a new effluent water pump station, effluent- and city-water piping improvements and plant-wide replacement, a new electrical substation at the Southwest Primary Settling Tanks and a new Gatehouse at the Laramie Ave. entrance. The new centrifuge machines have almost three times the capacity of the old machines and use less energy and polymer. The improved sludge thickening results in a more concentrated blend of sludge being sent to the digesters, which reduces energy consumption. The complex nature of this project required collaboration between the District’s design division and the contractor in order to provide additional design work based on unanticipated site conditions. The revised design resulted in change order work that has been approved by the Board of Commissioners. The contract duration has been extended by 943 calendar days. Additional insurance and bond premiums, extended overhead costs, MPLA labor rate increases and costs associated with losses of efficiency and productivity were incurred due to the extended contract duration. In order to mitigate additional costs, a credit for the deletion of the remaining non-critical contract work and a credit for the unused portions of unit price and allowance item work were requested. The contractor submitted a cost proposal (CCO-233) for a negotiated extra in the amount of $4,500,000.00 and a credit in the amount of $1,449,562.11, for a net extra in the amount of $3,050,437.89. The engineer reviewed the proposal, found it to be reasonable, and stated via correspondence 6124, that the Engineering Department would recommend its approval.
This contract is complete and it is necessary to increase and close this purchase order.
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 09-176-3P in an amount of $3,050,437.89 (1.83% of the current contract value), from an amount of $166,800,805.23, to an amount not to exceed $169,851,243.12.
Funds are available in Account 401-50000-645650.
Requested, Catherine O’Connor, Director of Engineering, MVL: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 June 16, 2016
Attachment