Title
Proposed Change Order No. 3
Contract No. 2003730/SCN-0000386
Water Transmission Main, Valve and Other Priority Repairs
CIP #170504 / BEC Score: 34.30
Body
Agenda of: July 22, 2026
Item No.: 2026-264
Amount: Original Contract $15,000,000.00
Change Order No. 1 12,000,000.00
Change Order No. 2 2,000,000.00
Proposed Change Order No. 3 2,000,000.00
Contract Total Amount $31,000,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: June 26, 2026
RE: Proposed Change Order No. 3
Contract No. 2003730/SCN-0000386
Water Transmission Main, Valve and Other Priority Repairs
Vendor: LGC Global, Inc.
Status: Amendment/Change Order
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. 2003730/SCN-0000386, Proposed Change Order No. 3 “Water Transmission Main, Valve and Other Priority Repairs” with LGC Global, Inc., for an increased cost of $2,000,000.00 for a total cost not to exceed $31,000,000.00 and no increase in duration for a total duration of five (5) years; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The GLWA Water Transmission System consists of a network of approximately 800 miles of large (greater than 24-inch diameter) water mains that serve 3.9 million people across 115 communities that are represented by 88 member partners in eight counties of southeastern Michigan. There are approximately 10,000 air, blow-off, and isolation valves associated with these mains. The average pipe age is over 60 years old with some exceeding 150 years in age.
This contract is used to respond to water main breaks, valve repairs, and other urgent projects as necessary to allow GLWA to provide water of unquestionable quality at the promised level of service to our member partners. Contract No. 2003730 is one of two concurrent emergency repair contracts, the other being Contract No. 2301148 “Water Transmission Main, Valve and Other Priority Repairs,” that GLWA intends to maintain on a staggered basis. This contract will also support valve repairs determined from the Valve Exercising Program, Linear System Integrity Program, and the GLWA/DWSD water main decommissioning efforts.
Change Order No. 1 added additional funds to the Contract due to the West 14 Mile Road Transmission Main rehabilitation from 2021.
Change Order No. 2 added additional funds to the Contract due to the 54-inch water main break on Beard Street in Southwest Detroit in February 2025 and the 42-inch water main break along West 14 Mile Road in September 2025 in anticipation of funding for the remaining contract term.
JUSTIFICATION
This Proposed Change Order No. 3 is requesting additional funds due to three (3) major breaks that happened in a short period of time since the request for additional funds in Change Order No. 2 was approved in February 2026. Additional funds are being requested due to expenses associated with 36-inch water main hit by a contractor on 24 Mile Road, west of Gratiot Avenue in Chesterfield Township in February 2026, the 48-inch water main break along West 14 Mile Road in Farmington Hills in March 2026 and the 42-inch water main break in Auburn Hills in May 2026.
The current contract is nearing expiration and the solicitation for replacement is currently in progress. The requested funds should allow this contract to be funded for the remaining contract term for the Contractor to continue to respond to urgent/emergencies within the system, and provide support to our Linear System Integrity Program, and Decommissioning Program.
PROJECT MANAGEMENT STATUS
Original Contract Time 5 years (10/8/2021 - 10/7/2026)
Change Order No. 1 0 years
Change Order No. 2 0 years
Proposed Change Order No. 3 0 years
New Contract Time 5 years (10/8/2021 - 10/7/2026)
PROJECT ESTIMATE
Original Contract Price $15,000,000.00
Change Order No. 1 12,000,000.00
Change Order No. 2 2,000,000.00
Proposed Change Order No. 3 2,000,000.00
New Contract Total $31,000,000.00
FINANCIAL PLAN IMPACT
Summary: The proposed contract with Lakeshore Global Corporation encompasses Capital Improvement Plan & Operations & Maintenance expenses. The value of the contract exceeds the current financial plan in total. Potential positive variances of other contractual services as well as the use of this service may vary by year. Sufficient funds will be provided in the Operations & Maintenance (O&M) and CIP financial plan for this contract.
Funding Source: Operations & Maintenance (O&M) Budget, CIP 170504
Cost Centers: Field Service Operations - Centralized Services Cost Center (882431)
Expense Type(s): Contractual Operating Services - All Water (617901); Construction (616900)
CIP O&M Total
Original Contract Price $9,800,000.00 $5,200,000.00 $15,000,000.00
Change Order No. 1 5,400,000.00 6,600.000.00 12,000,000.00
Change Order No. 2 875,000.00 1,125,000.00 2,000,000.00
Proposed Change Order No. 3 875,000.00 1,125,000.00 2,000,000.00
New Contract Total 16,950,000.00 14,050,000.00 31,000,000.00
Financial Plan Forecast 18,400,000.00 14,005,412.30 32,405,412.30
Estimating Variance $1,450,000.00 ($44,587.70) $1,405,412.30
The award of this change order provides an estimated O&M negative variance of ($44,587.70) which will be funded from the unallocated reserve and a CIP positive estimating variance of $1,450,000.00 which will move to reserves. The CIP financial plan (forecast) is from the FY 2027-2031 CIP Plan.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on July 8, 2026.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.