Title
Proposed Change Order No. 4
Contract No. PC-795 (SCN-0000480)
Pumping Station No. 2 Pumping Improvements
CIP #211002 / BCE Score: N/A
Body
Agenda of: February 26, 2025
Item No.: 2025-037
Amount: Original Contract $3,275,000.00
Change Order No. 1 (303,980.00)
Change Order No. 2 0.00
Change Order No. 3 0.00
Proposed Change Order No. 4 0.00
Total Contract Amount: $2,971,020.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: January 27, 2025
RE: Contract No. PC-795 (SCN-0000480)
Pumping Station No. 2 Pumping Improvements
Vendor: Commercial Contracting Corporation
Status: Amendment/Change Order
MOTION
Upon recommendation of Navid Mehram, Chief Operating Officer - Wastewater Operating Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. PC-795 (SCN-0000480), Proposed Change Order No. 4, Pumping Station No. 2 Pumping Improvements with Commercial Contracting Corporation, with no increase in cost for a total cost not to exceed $2,971,020.00 and an increased duration of 306 days for a duration of 3,362 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On October 5, 2016, Tooles Contracting Group (Tooles) and GLWA entered into a contract for replacement and improvement of Pump No. 11 and 14 for Pump Station No. 2.
On January 19, 2021, Change Order No. 1 was executed, changing the Substantial Completion Date and the Final Completion Date for the entire project while accepting Pump No. 11 with a negotiated credit, based on the performance of the pump deviation from the agreement’s specified performance criteria. Additionally, GLWA agreed to revise the performance criteria for Pump No. 14 to align with the accepted Pump No. 11 performance.
In May 2021, Tooles installed Pump No. 14, conducted the ten-day performance test, and submitted the test data analysis to GLWA. GLWA and its consultant, Arcadis, reviewed the submitted test data and determined that Pump No. 14 did not meet the agreement’s specified performance criteria.
Afterward, GLWA issued a defective work notice to Tooles. Tooles agreed to furnish and install a new impeller for Pump No. 14 based on new computational fluid dynamics modeling and modified operating parameters, and GLWA and Tooles executed Change Order No. 2 extending the contract time and milestones to facilitate these changes.
Redesign of the impeller, testing and new tooling for manufacturing further delayed the schedule. Therefore, in July 2023, Tooles and the manufacturer, Flowserve, installed the redesigned impeller for Pump No. 14 and completed the ten-day performance test. Upon completion of the test, Tooles and Flowserve submitted the test data analysis to GLWA, suggesting that it met the performance requirements of the agreement for Pump No. 14. However, GLWA and its consultant found that Pump No. 14 did not meet all agreed upon performance requirements. Specifically, Pump No. 14 did not meet the pump flow, power, and capacity drift performance requirements.
In August 2023, GLWA issued a liquidated damage (LD) notice to Tooles advising them of its intent to assess LDs in accordance with the agreement for not meeting the Substantial Completion and Final Completion milestones.
To facilitate ongoing analysis and troubleshooting, GLWA executed Change Order No. 3 extending the final completion date of the Contract, for correcting performance issues related to pump No.14. GLWA reserved its right (in Change Order No. 3) to assess LDs from May 16, 2023, until the project achieves substantial completion, and from August 21, 2023, until the project is finally complete in accordance with the Agreement.
In August 2024, Tooles Contracting Group, Commercial Contracting Corporation (CCC) and GLWA executed a Novation Agreement and PC-795 contractual responsibility was assigned from Tooles to CCC.
In December 2024, GLWA and CCC replaced the pump assembly along with several siphon valves. The contractor continues to troubleshoot the installation to satisfactory manufacturer standards so the 10-day performance test can commence.
JUSTIFICATION
Proposed Change Order No. 4 extends the contract time, so that GLWA and CCC can complete the shaft alignment work and perform the 10-day performance test for Pump No.14, and both parties can negotiate an agreement regarding the performance of Pump No. 14.
The Contractor chose not to sign this Proposed Change Order No. 4, therefore, GLWA is issuing it unilaterally. GLWA intends to assess LDs until the project achieves key milestones in accordance with the agreement. Upon completion of project milestones, GLWA will evaluate the merits of claims made by the Contractor in its consideration for final assessment of LDs.
PROJECT MANAGEMENT STATUS
Original Contract Time 977 days (10/17/2016 - 06/20/2019)
Change Order No. 1 792 days (06/21/2019 - 08/20/2021)
Change Order No. 2 730 days (08/21/2021 - 08/20/2023)
Change Order No. 3 557 days (08/21/2023 - 02/28/2025)
Proposed Change Order No. 4 306 days (03/01/2025 - 12/31/2025)
New Contract Time 3,362 days (10/17/2016 - 12/31/2025)
PROJECT ESTIMATE
Original Contract Price $ 3,275,000.00
Change Order No. 1 (303,980.00)
Change Order No. 2 0.00
Change Order No. 3 0.00
Proposed Change Order No. 4 0.00
New Contract Total $ 2,971,020.00
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Wastewater Construction Fund
Cost Center: Wastewater Field Engineering
Expense Type: Construction (5421-892211.000-616900-211002)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price $3,275,000.00
Change Order No. 1 (303,980.00)
Change Order No. 2 0.00
Change Order No. 3 0.00
Proposed Change Order No. 4 0.00
New Contract Total $2,971,020.00
Amended Financial Plan Estimate $3,275,000.00
Estimating Variance 303,980.00
This proposed change order is for an extension of time only and there is no substantive financial impact.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on February 12, 2025. 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.