TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 11, 2022
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to increase Contract 15-266-4H5 Decommissioning of the Thornton Transitional Reservoir, Calumet Service Area, to IHC Construction Companies, LLC in an amount of $592,041.38, from an amount of $24,707,285.49, to an amount not to exceed $25,299,326.87, Account 401-50000-645620, Purchase Order 4000082
Body
Dear Sir:
On November 4, 2021, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 15-266-4H5 Decommissioning of the Thornton Transitional Reservoir, Calumet Service Area, to IHC Construction Companies, LLC in an amount not to exceed $24,689,000.00, plus a five (5) percent allowance for change orders in an amount of $1,234,450.00, for a total amount not to exceed $25,923,450.00. The scheduled contract completion date is June 3, 2023.
As of July 15, 2022, the attached list of change orders has been approved.
Original Contract Amount $24,689,000.00
Date of Board Approval 11/04/2021
Cumulative Change Order (7/15/2022) $18,285.49
% Change of Original Contract Value 0.07%
Current Contract Value $24,707,285.49
Requested Increase $592,041.38
New Contract Value $25,299,326.87
% Change of Current Contract Value 2.40%
Total % Change of Original Contract Value 2.47%
After the Thornton Transitional Reservoir (TTR) and the Thorn Creek Diversion Tunnel were dewatered to allow the contractor access to the work areas, the contractor encountered a significant amount of sediment on the reservoir floor and within the tunnels, limiting access to the designated work areas. The contractor notified the engineer of the excessive amount of sediment impeding the work area and based on the critical schedule of the contract, proceeded at their own risk to move the material to allow access to the work area that needed to be removed before they could begin work. The contractor proceeded at their own risk, after considering two factors. First, there was little rain in the forecast, and if they delayed this work to a later date, there could have been multiple storms that would require suspending their work since it takes place inside the operational reservoir. Second, the overall decommissioning work has a strict deadline to be completed by the end of the year, which is when our agreement to use this portion of the quarry ends. The contractor’s personnel worked 17 days over multiple shifts to move the sediment. The sediment removal work was tracked on a time and material basis and has been completed. At the time of bidding, the TTR and Diversion Tunnel held water, and the sediment was not discoverable. After completion of the work, the contractor submitted a cost proposal (COR-05) for an extra in the amount of $592,041.38 based on actual time and material costs incurred. The engineer reviewed the proposal, found it to be reasonable, and stated via correspondence CO05 that the Engineering Department would recommend its approval.
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 15-266-4H5 in an amount of $592,041.38 (2.40% of the current contract value), from an amount of $24,707,285.49, to an amount not to exceed $25,299,326.87.
Funds are available in Account 401-50000-645620.
Requested, Catherine A. O’Connor, Director of Engineering, KMF:LS
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 August 11, 2022
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