Title
Proposed Change Order No. 1
Contract No. 2003330
HVAC and Odor Control Improvements, Oakwood CSO
CIP #260618/BCE Score: No Score under CIP CSO Program 260600
Body
Agenda of: October 26, 2022
Item No.: 2022-451
Amount: Original Contract: $5,492,000.00
Proposed Change Order No.1: 500,000.00
Total Revised Contract: $5,992,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: September 30, 2022
RE: Proposed Change Order No. 1
Contract No. 2003330
HVAC and Odor Control Improvements, Oakwood CSO
Vendor: Commercial Contracting Corporation
Designer: Hazen and Sawyer
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. 2003330, Proposed Change Order No. 1, "HVAC and Odor Control Improvements, Oakwood CSO" with Commercial Contracting Corporation, at an increased cost of $500,000.00 for a total cost not to exceed $5,992,000.00, and an increase in duration of 351 days for a total contract duration of 832 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On June 16, 2021, GLWA awarded Commercial Contracting Corporation (CCC) ‘HVAC and Odor Control Improvements, for Oakwood CSO Facility’ Contract No. 2003330. The start date was June 21, 2021. The scope of work consists of two packages. Package A consists of various improvements to the HVAC system throughout the facility from excessive corrosion from hazardous space and expediting premature wear of equipment useful life. The improvements include relocation of HVAC equipment to non-corrosive spaces and improving access, as well as a change overall to airflow in the facility to keep corrosive sewer gases in the sewer. Package B consists of upgrades to electrical and controls system at the facility improving reliability and operational flexibility.
The Contractor has completed about 85% of base contract work, however, supply chain issues continue to impact GLWA projects, and this project is no exception to that.
Furthermore, during construction, GLWA experienced an unforeseen condition of continued failures associated with air handling unit (AHU) #1. Repeated attempts to repair this AHU or alter its operations have proved unsuccessful and left the electrical switch gear room which powers all the storm pumps at risk of overheating in the summer. Overheating would result in likely failure of the electrical drives for the pump motors, rendering the storm and sanitary pumps inoperable which would lead to flooding and permit violation.
JUSTIFICATION
Due to continued supply chain issues affecting all industries, several key elements of this project will be completed after the final completion date. These include a basin supply fan, the sanitary pump room gas detection system, and electrical gear for several basin supply fans. As of today, we expect this will result in a six (6) month delay to the final completion of project work.
Additionally, with the continued failure associated with AHU #1 and GLWA’s unsuccessful attempts to repair the unit, it is the opinion of GLWA mechanical contractors, and engineering, to replace the unit to ensure reliable operation of the pump station and CSO basin.
GLWA leveraged design for this replacement AHU within our design contract associated with this construction contract and negotiated a cost with the Contractor in the amount of $459,101.26 for procuring and installation and it is being evaluated. As of today, we expect procurement of the AHU to take approximately 8 months. Procuring now and installing will ensure our electrical room is ventilated properly for summer of 2023. Given the nature of this project being an HVAC improvements project, the best team is already assembled to complete this work in a timely manner ahead of next summer’s cooling season.
Lastly, given the quotation by the Contractor, GLWA is requesting an additional $500,000.00 to be added to the project to support the replacement of AHU #1. The original construction allowance of $350,000.00 has $24,512.42 remaining. The allowance was used to support unforeseen conditions including: Replacements of supply fan SF5, 6, 7 motorized dampers with gravity backdraft dampers, supply fan #7, 36” FRP damper’s actuator and curbs of exhaust fans 14,15, 20, 21, 22, 23, 24, and supply fans 5, 6, 8 and 9.
This results in a total Contract value of $5,992,000.00 any unused amounts of the allowance will be credited back to GLWA in the final project change order.
PROJECT MANAGEMENT STATUS
Original Contract Time: 481 days (06/21/21-10/14/22)
Proposed Change Order No.1: 351 days (10/15/22-09/30/23)
Total Contract Time: 832 days (06/21/21-09/30/23)
PROJECT ESTIMATE
Original Contact Price: $5,492,000.00
Proposed Change Order No. 1: 500,000.00
New Contract Total: $5,992,000.00
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Construction Bond Fund
Cost Center: Wastewater
Expense Type: Design (5421-892211.000-616900-260618)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price: $5,492,000.00
Proposed Change Order No. 1 $500,000.00
New Contract Total: $5,992,000.00
Amended Financial Plan Estimate: $5,396,000.00
Estimating Variance: ($596,000.00)
The Amended Financial Plan Estimate amounts above is per the FY2023-2027 CIP Plan. The award of this amendment creates a negative estimating variance of ($596,000.00). This variance will be funded from Capital Reserves.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on October 12, 2022. 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.