TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 16, 2026
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Executive Director
Title
Issue purchase order and enter into an agreement for Contract 25-RFP-21 Rebuild of Dewatering Facility, CWRP, with IHC Construction Companies LLC, in an amount not to exceed $7,105,000.00, Accounts 401-50000-612450, 645650, and 645750, Requisition 1647436.
Body
Dear Sir:
Authorization is requested to issue a purchase order and enter into an agreement with IHC Construction Companies LLC for engineering design, construction, and installation services under Contract 25-RFP-21 Rebuild of Dewatering Facility, CWRP.
The purpose of this contract is to rebuild the dewatering facility at the Calumet Water Reclamation Plant (CWRP). The project includes installing new centrifuges and associated equipment, rehabilitating the facility, constructing two new digested sludge storage tanks, and installing new structures and utilities necessary for operation. Due to the Chicago Transit Authority’s Red Line extension, trucking digested sludge from the lagoons to the drying beds will no longer be a practical long-term solution. Rebuilding the existing dewatering facility will enable digested sludge to be mechanically dewatered instead of using the existing lagoons. Additionally, all dewatering facility buildings will be upgraded to comply with the current National Fire Protection Association codes.
The project will be delivered using the Progressive Design-Build method and will be executed in two phases. Phase 1 consists of professional engineering design and pre-construction services. Phase 2 will include procurement of equipment, construction, installation, and post-award professional engineering support and may be broken into multiple sub-phases. Authorization to amend the purchase order for Phase 2 services will be requested later once the construction scope and associated costs have been finalized.
On November 6, 2025, the Board of Commissioners authorized the request for proposal (RFP) Contract 25-RFP-21 for Phase 1 and Phase 2 work with an estimated cost between $67,925,000.00 and $82,225,000.00. On March 5, 2026, the Board approved an amendment to the RFP. The RFP was publicly advertised on December 17, 2025, and three responsive proposals were received on April 24, 2026 from the following three firms.
1. IHC Construction Companies LLC
2. ARCO/Murray National Holdings, Inc.
3. F.H. Paschen and AECOM a Joint Venture
The three proposals were reviewed and evaluated by an evaluation committee consisting of five representatives from the Engineering Department, one representative from the Maintenance and Operations Department, and one representative from the Procurement and Materials Management Department. Evaluation criteria, as established in 25-RFP-21, included the proposer’s understanding of the project, technical approach, cost proposal, qualifications, financial stability, compliance with insurance requirements, and submission of all necessary licenses and permits. Following the preliminary evaluation of proposals, interviews were conducted with all three responsive proposers on June 2, 2026.
On June 16, 2026, each responsive proposer was invited to submit an unqualified best and final offer (BAFO). The BAFO submissions were received and opened by the Director of Procurement and Materials Management on June 22, 2026.
Based on the review of the proposals, the interview performance, and the best and final offers, the evaluation committee determined that IHC Construction Companies LLC is the firm most qualified and best suited to provide the required services under this contract.
IHC Construction Companies LLC is registered to transact business and is in good standing with the State of Illinois.
The agreement requires that Phase 1 shall be completed within one hundred and eighty days (180) days, or approximately six (6) months and Phase 2 within six hundred and seventy-five (675) days, or one (1) year and ten (10) months.
No Disadvantaged Business Enterprise (DBE) goals were included in Phase 1 of the contract. However, DBE goals will be established for Phase 2 in coordination with the CTA's DBE program.
The agreement shall be subject to the approval of the Law Department as to form and legality.
Inasmuch as the firm IHC Construction Companies LLC possesses a high degree of professional skill and expertise, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order and enter into an agreement per Section 11.4 of the Purchasing Act, in an amount not to exceed $7,105,000.00.
Upon completion of design, a request will be made to the Board to enter into an agreement(s) with IHC Construction Companies LLC for Phase 2 services. The price proposal for Phase 2 is $65,000,000.00. Based on the final outcome of the design, the price proposal for Phase 2 work will be adjusted as necessary prior to award.
Funds for the 2026 expenditure for engineering design services, in the amount of $7,105,000.00, are available in Account 401-50000-612450. Funds being requested in Accounts 401-50000-645650 and 645750 for the 2027 expenditure for construction and installation services in the amount of $65,000,000.00, are contingent on the Board of Commissioners’ approval of the District’s budget for that year.
Requested, Catherine A. O’Connor, Director of Engineering, CS:GAK
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson 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 16, 2026