Title
Proposed Change Order No. 2
SP-563
1958 Filter Replacement and Facilities Rehabilitation at Springwells Water Treatment Plant
Body
Agenda of: December 12, 2018
Item No.: 2018-1042
Amount: Original Contract $ 75,899,000.00
Change Order No. 1 0.00
Change Order No. 2 0.00
Total Contract Amount $ 75,899,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: December 5, 2018
RE: Proposed Change Order No. 2
Contract No. SP-563
Springwells Water Treatment Plant
1958 Filter Replacement and Facilities Rehabilitation
Vendor: Walsh Construction 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. SP-563 Change Order No. 2 “1958 Filter Replacement and Facilities Rehabilitation at Springwells Water Treatment Plant” for an increased contract length of 365 days for a total contract duration of 2,318 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Springwells Water Treatment Plant (WTP) is the largest of the five GLWA water treatment plants at a capacity of 540 million gallons per day and serves nearly 1 million people. This WTP has supplied a continuous flow of water to our member partners for over 80 years. The original plant was built in the 1930s and the plant was expanded in the 1950s. The 1930s filters were reconstructed in the mid-1990s to early 2000s. Contract No. SP-563 is the construction contract associated with reconstructing the 1958 filters and making numerous plant-wide facility improvements, including concrete restoration, water flow control gate and stop log replacements, building mechanical system replacement, lighting system replacement, elevator renovations, and electrical system upgrades. Contract No. SP-563 began in March 2013 and has a contract amount of $75,899,000.00. This contract was expected to be completed in November 2018. There was a construction-related explosion in September 2017 of which the mechanical subcontractor who was involved in the explosion was removed from the project and a new mechanical subcontractor was assigned to SP-563 by Walsh Construction Company. The explosion caused physical damage to existing and new facilities at the plant, which required replacement and remediation. The assignment of a new mechanical subcontractor to the project and replacement of equipment and facilities damaged by the explosion delayed the project several months. Therefore, additional contract time is needed to complete the base scope of the project. In addition, more time is needed to complete additional system improvements at the Springwells WTP which is best performed under this contract.
GLWA completed an automation needs assessment study under another contract (CS-108) during the course of the SP-563 construction contract. The automation needs assessment study concluded that GLWA’s existing technology for its automation control system and cyber-security need improving to provide better reliability and security. Considering that the scope of this SP-563 contract includes upgrading the automation control system for the 1958 filters, it is best to make sure this system is upgraded to current best practices and standards. In addition, improvements to building heating, ventilating and air-conditioning and electrical power distribution system in the administration building are needed to improve HVAC efficiency and electrical power reliability. It is important to note that the administration building houses electrical gear that powers the process control system for the entire plant. The control system is located in the basement of the administration building, which is susceptible to flooding. The electrical gear is being relocated to the first floor of the administration building to eliminate the potential for taking this electrical gear out of service due to flooding events. These improvements are best implemented now using the SP-563 contractor because they are actively working in this building.
JUSTIFICATION
This Change Order No. 2 to Contract No. SP-563 is necessary to afford the construction contractor enough time to complete necessary plant-wide automation control system and building mechanical and electrical power distribution system improvements in the administration building not included in the original scope of work. These additional improvements will provide greater plant-wide automation control system reliability and cyber-security, more efficient HVAC operations in the administration building, and a more reliable electrical power distribution in the administration building.
PROJECT MANAGEMENT STATUS
This Change Order No. 2 will extend the Final Completion date 365 days from the current Final Completion date of November 12, 2018 to November 12, 2019. Upon completion of ongoing negotiations associated with the automation and cyber-security enhancements, a future change order will be developed and presented to address the costs associated with the final scope of the enhancements.
PROJECT MANAGEMENT STATUS
Original Contract Length: 1,710 days
Change Order No. 1: 243 days
Change Order No. 2: 365 days
New Contract 2,318 days
PROJECT ESTIMATE
Original Contract Price: $ 75,899,000.00
Change Oder No. 1: 0.00
Change Order No. 2: 0.00
New Contract Total: $ 75,899,000.00
FINANCIAL PLAN IMPACT
Summary: Proposed change order is for time extension only. Therefore, no financial plan impact exists.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on December 12, 2018. 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.