TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 9, 2009
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase Contract 04-294-3M Calumet TARP Isolation and Pump Station Improvements, Calumet Water Reclamation Plant, to Kenny Construction Company, in an amount of $128,465.41, from an amount of $59,999,958.60 to an amount not to exceed $60,128,424.01, Account 401-50000-645600, Purchase Order 5000309
Body
Dear Sir:
On December 2, 2004, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 04-294-3M Calumet TARP Isolation and Pump Station Improvements, Calumet Water Reclamation Plant, to Kenny Construction Company, in an amount not to exceed $57,126,700.00. The contract terms called for the completion of all work by June 23, 2008. This contract is still in progress.
As of June 19, 2009, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $2,873,258.60 from the original amount awarded of $57,126,700.00. The current contract value is $59,999,958.60. The approved change orders reflect a 5.03% increase to the original contract value.
Item1: An extra in the amount of $21,195.18 for loss of production. The contract includes extending the dividing wall in the existing wet well to the full height of the wet well shaft. Prior to the contractor working within the wet well, the water in the tunnels and wet well must be pumped down. The contractor’s bid included the cost of remobilization from the tunnel and wet shaft at the request of the District for non-weather related events for up to six occurrences. Due to several unforeseeable instances in which the Maintenance & Operations Department’s personnel were unable to pump the tunnel water and allow the contractor to continue with construction, including problems with the E-1, E-2, E-3, W-1, W-2 and W-3 pumps and the DCS controls, the six remobilization requests were exceeded. Therefore, it is necessary to compensate the contractor for loss of production.
The contractor submitted four cost proposals (CORs 082, 083, 084, and 085) in the total amount of $31,583.35. The engineer reviewed the proposals and found them unacceptable. Due to the similar nature of the change orders, the engineer combined all four into a single claim (COR-082) and offered a counterproposal via file letter 963 in the amount of $21,195.18, which has been accepted by the contractor and the Engineering Department recommends its approval.
This change order is in compliance with the Illinois Criminal Code since the change is germane to the original contract.
Item 2: A net extra in the amount of $41,465.21 for elevator modifications. The contract includes the refurbishment of the existing traction elevator in the West Pump Room Access Shaft. After a meeting with representatives from Mid-American Elevator Company, District personnel and an elevator inspector, it was determined that a number of modifications need to be made in order to bring the existing traction elevator up to the current safety code. The necessary improvements include designations in the elevator cab and corridor call boxes, installation of a drain pan and drain piping under the heater in the elevator room, fire damper modifications, enclosure of the roof drain piping, and not installing thin wall conduit.
The contractor submitted a cost proposal (COR-061) in the amount of $78,995.78 and a credit in the amount of $25,630.00 for a net extra in the amount of $53,365.78. The engineer reviewed the proposal, found it unacceptable and offered a counterproposal via file letter 858 for an extra in the amount of $69,658.21 and a credit in the amount of $28,193.00 for a net extra of $41,465.21, 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 germane to the original contract.
Item 3: A net credit in the amount of $5,677.73 for not relocating an 18” SPN line. The contract includes the relocation of an 18” SPN line located inside the west pump room access shaft. During the demolition of the line, it was determined that this line had previously been abandoned, and it was unnecessary to reroute the line. The demolition of the SPN line was completed and the lines converging to the SPN line were bulkheaded. The removal work of the line also included the demolition and disposal of concrete that enclosed the line, which was beyond the scope of work that was expected.
The contractor submitted a cost proposal COR-068 for a credit in the amount of $14,652.00 and an extra in the amount of $12,718.00 for a net extra in the amount of $1,934.00. The engineer reviewed the proposal found it unacceptable and offered a counterproposal via file letter 927 for a credit in the amount of $12,402.42 and an extra in the amount of $6,724.69 for a net credit in the amount of $5,677.73, which has been accepted by the contractor.
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.
Item 4: An extra in the amount of $71,482.75 to reroute heating lines. The contract includes the installation of a heat exchanger within the TARP building. During the construction of the heating hot water supply and return (HHWS/R) lines associated with the new heat exchanger, the engineer decided that the HHWS/R piping should be rerouted to ensure sufficient entry space into the wet shaft area for future projects. Currently there are several stretches of piping that are routed along the path originally designated for the HHWS/R piping under the contract that partially obstruct the entry space. The new piping would have to be installed at an elevation below the existing piping thus obstructing the entry space even further.
The contractor submitted a cost proposal COR-094 for an extra in the amount of $71, 482.75. The engineer reviewed the proposal, found it reasonable, and stated via file letter 988, that the Engineering Department would recommend its approval.
The change order is in compliance with the Illinois Criminal Code since the change is germane to the original 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 04-294-3M in an amount of $128,465.41 (0.21% of the current contract value) from an amount of $59,999,958.60 to an amount not to exceed $60,128,424.01.
Funds are available in Account 401-50000-645600.
Requested, Joseph P. Sobanski, 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 July 9, 2009
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