Title
Proposed Amendment No. 2
Contract No. 2100998
East Avon Early Works Pipe Material Procurement for the 96-Inch Water Transmission Main Relocation Project
CIP #122004 / BCE Score: 77.5
Body
Agenda of: November 16, 2023
Item No.: 2023-414
Amount: Original Contract $2,843,263.00
Amendment No. 1 6,394,320.00
Proposed Amendment No. 2 0.00
Total Revised Contract $9,237,583.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: October 27, 2023
RE: Proposed Amendment No. 2
Contract No. 2100998
East Avon Early Works Pipe Material Procurement for the 96-Inch Water Transmission Main Relocation Project
Vendor: Northwest Pipe Company
MOTION
Upon recommendation of Cheryl Porter, Chief Operating Officer - Water and Field Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 2100998, Proposed Amendment No. 2, “East Avon Early Works Pipe Material Procurement for the 96-Inch Water Transmission Main Relocation Project” with Northwest Pipe Company, with no increase in cost for a total cost not to exceed $9,237,583.00 and an increased duration of 24 months for a total duration of 48 months; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Great Lakes Water Authority (GLWA) Water Engineering Group is overseeing the relocation of a portion of its 96-inch water transmission main (WTM) that connects the North Service Center and Rochester Pump Stations. The 96-inch WTM relocation is being completed to relocate GLWA facilities outside the influence of the decommissioned G&H Industrial Landfill site, a listed U.S. Environmental Protection Agency Superfund site. This relocation project involves installation of approximately 2.5 miles of new 96-inch water transmission main along Dequindre Road, Avon Road, and the Macomb Orchard Trail between Hamlin Road and 24 Mile Road. Once this new section of 96-inch water transmission main is placed into service, the existing water transmission main that is within the influence of the decommissioned G&H Industrial Landfill site will be taken out of service and abandoned in place.
The original procurement for Contract No. 2100998 was for the purchase of 2,590 feet of 96-inch diameter pipe, fittings, and appurtenances to be ready for installation by the Construction Manager at Risk (CMAR) contractor beginning in November 2022 as part the first segment of pipeline installation along Avon Road between Dequindre and 23 Mile Roads to include the Clinton River crossing. The first segment of piping will be installed early in the construction schedule as part of GLWA’s coordination with the Road Commission for Oakland County’s (RCOC) planned roadway and bridge improvements along Avon Road.
Amendment No. 1 added 7,985 feet of 96-inch diameter pipe, fittings, and appurtenances to the original scope of Contract No. 2100998. This amendment provided material procurement for the second segment of pipeline relocation along Dequindre Road from Hamlin Road to the Macomb Orchard Trail. Advanced procurement of pipe materials was required to maintain the Michigan Department of Environment, Great Lakes, and Energy (EGLE) Drinking Water State Revolving Fund (DWSRF) fiscal year loan schedule.
Proposed Amendment No. 2 is a time only change due to GLWA’s decision to terminate the CMAR contractor on Phase 1 of the project. Since the project will not continue as a CMAR contract, the addition of the Phase 2 bidding process delayed the start of construction.
JUSTIFICATION
GLWA originally anticipated Phase 2 pipe production and delivery to be completed by the end of 2023 based on the original CMAR contractor schedule. The new Phase 2 contractor, Ric-Man/Clark Joint Venture, has submitted a baseline schedule that shows pipe deliveries extending into the fall of 2025. This requires a time extension with Northwest Pipe Company for coordinating deliveries of the GLWA furnished pipe material. The request is for a time only change from January 16, 2024, to January 16, 2026. This will allow sufficient time to finish pipe production, deliveries, and closeout requirements.
PROJECT MANAGEMENT STATUS
Original Contract Time 12 months (01/17/2022 - 01/16/2023)
Amendment No. 1 12 months (01/17/2023 - 01/16/2024)
Proposed Amendment No. 2 24 months (01/17/2024 - 01/16/2026)
New Contract Time 48 months (01/17/2022 - 01/16/2026)
PROJECT ESTIMATE
Original Contract Price $2,843,263.00
Amendment No. 1 6,394,320.00
Proposed Amendment No. 2 0.00
New Contract Total $9,237,583.00
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Water Construction Fund
Cost Center: Field Engineering
Expense Type: Construction (5519-882411.000-617955-122004)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price $2,843,263.00
Amendment No. 1 6,394,320.00
Proposed Amendment No. 2 0.00
New Contract Total 9,237,583.00
Amended Financial Plan Estimate 232,527,000.00
Balance Reserved for Construction $223,289,417.00
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on November 8, 2023. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.