TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 18, 2023
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to decrease Contract 15-266-4H5 Decommissioning of the Thornton Transitional Reservoir, CSA, to IHC Construction Companies, LLC in an amount of $7,748.50, from an amount of $26,100,447.16, to an amount not to exceed $26,092,698.66, 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 anticipated contract completion date is June 3, 2023.
As of May 5, 2023, 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 (5/5/2023) $1,411,477.16
% Change of Original Contract Value 5.72%
Current Contract Value $26,100,447.16
Requested Decrease ($7,748.50)
New Contract Value $26,092,698.66
% Change of Current Contract Value (0.03%)
Total % Change of Original Contract Value 5.69%
Item 1: To address ongoing odor concerns at the Thornton Composite Reservoir (TCR), the scope of work of this change order includes installing an odor control misting system along the north and east perimeter of the TCR to neutralize odors in the vapor phase. The work includes installing a metal building to house the pumps and for chemical storage, supply power to the building and all necessary piping and ancillary equipment for a complete system. The odor control solution is a biodegradable, non-toxic and environmentally friendly odor neutralizer. The product is a blend of essential oils, food grade surfactants, and purified water. The District has been using the product successfully at the Thornton Construction Shaft and Gate Shaft northeast of the TCR. The contractor submitted a cost proposal (COR-18) for an extra in the amount of $1,048,999.00. The Engineer reviewed the proposal, found it to be reasonable, and stated via correspondence CO-18 that the Engineering Department would recommend its approval.
Item 2: Upon removing sediment from the Thornton Transitional Reservoir (TTR), during decommissioning work, it was discovered that concrete slabs used to support rock excavation and conveying systems during the installation of the TTR Connection tunnel in 2001 were left in place. Additionally, upon removal of the concrete plug between the TTR and main lobe of the Thornton Quarry under this contract, it was discovered that a concrete levelling slab was installed prior to installing the concrete plug in 2001. None of these concrete slabs were shown on the as-built drawings and thus not included for removal in contract plans and specifications. Hanson Material Service, the owner of the property, requested that the District remove the concrete slabs and concrete levelling slab. This change order includes an extra for dewatering the worksite, relocation of the shot rock and removal and legal off-site disposal of the concrete slabs within the TTR and the concrete slab in the haul tunnel. The contractor submitted a time and material not to exceed cost proposal (CCO-19) for an extra in the amount of $2,237,743.00. The Engineer reviewed the proposal, found it to be reasonable, and stated via correspondence CO19 that the Engineering Department would recommend its approval.
Item 3: It was brought to the District's attention that trees planted per COR-08 along State Street were leaning due to windy conditions. The contractor recommended a tree support system in the form of staking and guying 97 trees to aid in alignment. This change order includes an extra for the material and labor for installing the guying system. The contractor proceeded at their own risk and completed the work. After completion of the work the contractor submitted a cost proposal (CCO-20) for an extra in the amount of $5,509.50 based on actual time and material costs incurred. The engineer reviewed the proposal, found it to be reasonable, and stated via correspondence C020 that the Engineering Department would recommend its approval.
Item 4: The contractor requested the District reduce the value of the unused unit price work associated with the contract. The contract documents included a unit price item for contractor’s standby time should they be required to leave the worksite due to a rain event impounding water in the TCR. During the course of work, there were no rain events that caused the contractor to experience standby time as specified in the contract documents. At this time, the District will allow for a reduction of Item 14 - Contractor Standby Time Between Demobilization(s) and Remobilizations(s) for Tunnel Lining, Construction of East Tunnel Plug, Removal of Rock Plug, and Tunnel Connecting by 75 days at the unit bid price of $44,000 per day for a total of $3,300,000.00. The contractor accepted the engineer’s counter cost proposal (CCO-021) for an extra in the amount of $0.00 and a credit in the amount of $3,300,000.00, for a ‘Net’ Total in the amount of ($3,300,000.00).
The Engineer has reviewed the proposals for the four change orders listed above, found them to be reasonable, and stated that the Engineering Department would recommend their approval.
These change orders are in compliance with the Illinois Criminal Code since the changes are due to circumstances not reasonably foreseeable at the time the contract was signed and are 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 four change orders to decrease Contract 15-266-4H5 in the net credit amount of $7,748.50 (-0.03% of the current contract value), from an amount of $26,100,447.16, to an amount not to exceed $26,092,698.66.
Funds will be restored to 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, Marcelino Garcia, 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 May 18, 2023
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