TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 1, 2022
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
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Authorization to increase cost estimate for Contract 06-360-3SR, Upper Des Plaines Intercepting Sewer 14B Rehabilitation, NSA, estimated cost between $28,500,000.00 and $34,500,000.00, Account 401-50000-645700, Requisition 1554039
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Dear Sir:
On June 17, 2021, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise Contract 06-360-3S, Upper Des Plaines Intercepting Sewer 14B Rehabilitation, NSA, at an estimated cost between $13,410,200.00 and $16,233,400.00.
The contract was originally advertised for bid on August 11, 2021. However, a sole bid submitted was approximately 176 percent over the high end of the estimated cost range and considered too high and a report on rejection of bids was presented to the Board of Commissioners at the meeting of November 18, 2021.
The contract cost estimate has been increased due primarily to a reevaluation of the estimated cost of materials, constructability efforts and sewer rehabilitation requirements based on feedback from multiple contractors. Upon review, contract items related to the pipe lining of the 5’-9” intercepting sewer and manhole structural rehabilitation were largely undervalued in the cost estimate in terms of material and labor. Furthermore, the 5’-9” intercepting sewer travels through the Chicago Executive Airport (CEA) property in the Village of Wheeling and limited access was available to the contractor to complete the work due to airport restrictions. Staff went back to the CEA to discuss how the previously imposed access constraints could be relaxed to provide a more bidder friendly contract. Staff also revised the specifications to allow additional sewer rehabilitation technologies to be allowed which should help minimize disruptions to airport operations. The contract cost estimate has been amended to reflect these changes and update costs.
Work will consist of the rehabilitation of 2,888 feet of 48-inch diameter sewer, and 11,908 feet of 69-inch diameter sewer, by cured-in-place pipe lining and/or slip-lining process and/or fiber reinforced polymer lining process and/or geopolymer lining process, the rehabilitation of 28 manholes/structures by the spray-on lining system process and/or fiber reinforced polymer lining process, the abandonment of 1 offset manhole, the abandonment of part of a control structure, the abandonment of 85 feet of 3’-6” x 4’-6” pipe, and all other work collateral thereto as specified, and as shown on the plans.
The necessary right-of-way documents have been acquired.
It is estimated that roughly 161 full time equivalent jobs will be created during this contract period.
The engineer’s estimated cost for this contract is between $28,500,000.00 and $34,500,000.00. The estimated cost range will be stated in the advertisement for bids.
The bid deposit for this contract is $600,000.00.
The contract specifications require that all work commence 30 calendar days after approval of the contractor’s bond and shall be completed within 1,050 calendar days after approval of the contractor’s bond. Liquidated damages are $1,500.00 for each calendar day beyond the specified date for substantial completion and $500.00 for each calendar day beyond the specified date for final completion.
The Multi-Project Labor Agreement will be included in this contract.
The Affirmative Action Ordinance, Revised Appendix D will be included in this contract. The type of work to be performed under this contract is within the “Construction Services” category for establishing Minority-owned Business Enterprises (MBE), Women-owned Business Enterprises (WBE), Small Business Enterprises (SBE) and Veteran-owned Business Enterprises (VBE) utilization goals. The MBE, WBE, SBE and VBE utilization goals for this contract are: 5 percent MBE and/or WBE, 5 percent SBE and 3 percent VBE.
The tentative schedule for this contract is as follows:
Advertise September 14, 2022
Bid Opening November 15, 2022
Award January 19, 2023
Completion December 17, 2025
Funds are available in Account 401-50000-645700.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to increase the cost estimate and re-advertise Contract 06-360-3SR.
Requested, Catherine A. O’Connor, Director of Engineering, KMF
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 September 1, 2022
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