TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 19, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to increase Contract 07-168-3P Scum Concentration, Centrifuge Building, Preliminary & Imhoff Tanks, Elevator Improvements, Diffuser Plates and Trailer Replacement, Stickney Service Area, LASMA to IHC Construction Companies, LLC, in an amount not to exceed $234,595.72, from an amount of $22,780,366.55, to an amount not to exceed $23,014,962.27, Accounts 401-50000-645750 and 645780, Purchase Order 5001198
Body
Dear Sir:
On September 2, 2010, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 07-168-3P Scum Concentration, Centrifuge Building, Preliminary & Imhoff Tanks, Elevator Improvements, Diffuser Plates and Trailer Replacement, Stickney Service Area, LASMA to IHC Construction Companies, LLC, in an amount not to exceed $23,544,400.00. The scheduled contract completion date is September 16, 2012.
As of January 6, 2012, the attached list of change orders has been approved. The effect of these change orders resulted in a decrease in the amount of $764,033.45 from the original amount awarded of $23,544,400.00. The current contract value is $22,780,366.55. The prior approved change orders reflect a 3.25% decrease to the original contract value.
The contract includes replacing the air drop piping in the Battery D return activated sludge (RAS) channels at the Stickney Water Reclamation Plant. After installation of the air drop piping in the north RAS channel, it was discovered that a limited amount or no air was being diffused. Investigation determined that the elevation of the diffusers in this portion of the channels should have been at the original elevation of +3.50 instead of +1.00, as shown on the contract plans. Therefore, this air drop piping requires modification which includes draining and cleaning the channel, removal of the existing 98 floor pipe supports, cutting and welding 37 air drops, and installing 98 new wall pipe supports. The contractor submitted a revised proposal (CCO-015A) for an extra in the amount of $234,595.72. The proposal includes an extra of $86,903.30 for the piping modification work and an extra of $147,692.42 for cleaning the channel work. The engineer has reviewed the proposal and found it reasonable for the piping work in the amount of $86,903.30. However, the engineer and the contractor have not been able to reach an agreement on the channel cleaning work because the quantity of solids that may have accumulated in the channel cannot be determined. Therefore, the channel cleaning and sludge disposal portion of this change order will be performed on a time and material basis not to exceed $147,692.42. The engineer stated, via correspondence 421, that the Engineering Department would recommend its approval.
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 the above change order to increase Contract 07-168-3P in an amount of $234,595.72 (1.03% of the current contract value) from an amount of $22,780,366.55 to an amount not to exceed $23,014,962.27.
Funds are available in Accounts 401-50000-645750 and 645780.
Requested, Kenneth A. Kits, Director of Engineering, TEK:GR
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 January 19, 2012
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