Title
Proposed Amendment No. 1
Contract No. 2102834/SCN-0000255
Facilities Maintenance Services
O&M
Body
Agenda of: March 26, 2025
Item No.: 2025-074
Amount: Original Contract $29,881,439.12
Proposed Amendment No. 1 15,000,000.00
Total Contract Amount $44,881,439.12
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: March 5, 2025
RE: Proposed Amendment No. 1
Contract No. 2102834/SCN-0000255
Facilities Maintenance Services
Vendor: LGC Global, Inc.
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. 2102834/SCN-0000255, Proposed Amendment No. 1, “Facilities Maintenance Services” with LGC Global, Inc., with an increased cost of $15,000,000.00 for a total cost not to exceed $44,881,439.12 and an increased duration of one (1) year for a total duration of four (4) years; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
This Contract was awarded to LGC Global, Inc. (LGC) to provide skilled labor to perform maintenance activities within the wastewater system, including the Water Resource Recovery Facility, Combined Sewer Overflow facilities, and the Conveyance infrastructure. The staff augmentation included skilled trades from millwrights, plumbers, electricians, laborers, carpenters, heavy equipment operators and other as needed trades for performing specialized services, along with providing a knowledge base of technical support for all current code requirements for construction activities.
JUSTIFICATION
The Facilities Maintenance services are needed to support the needed resources to keep the GLWA wastewater system in compliance and to ensure facility and equipment reliability. The GLWA does not have sufficient staffing necessary to perform all the crucial maintenance functions in addition to providing emergency maintenance work. Therefore, the extension of funds and an extension of time is crucial for the Authority to augment its equipment and team members to maintain the facilities in compliance with its National Pollutant Discharge Elimination System permit. This contract gives GLWA the flexibility to increase or decrease the skilled trades staffing as needed based on workload demands, system demands, and other permit-related demands.
The needs of the GLWA system have exhausted the funds within this contract at a higher rate than was originally estimated for three reasons:
1. To augment our team members with technical expertise to provide the services necessary for the facilities and help in complex, resource-heavy, corrective maintenance activities.
2. To fill budgeted vacancies with hard to recruit and retain skillsets to complete preventative maintenance.
3. Transition of the field services responsibility to the newly created Conveyance team.
The funding increase includes $3M to complete the current contract term and $12M to support the contract extension. The GLWA team evaluated and recommends for the current contract to be extended with LGC holding the current labor rates of the contract for an additional year.
PROJECT MANAGEMENT STATUS
Original Contract Time 3 years (04/29/2022 - 04/28/2025)
Proposed Amendment No. 1 1 year (04/29/2025 - 04/28/2026)
New Contract Time 4 years (04/29/2022 - 04/28/2026)
PROJECT ESTIMATE
Original Contract Price $ 29,881,439.12
Proposed Amendment No. 1 15,000,000.00
New Contract Total $ 44,881,439.12
FINANCIAL PLAN IMPACT
Summary: The use of this contract as an augmentation of GLWA personnel is directly correlated to staffing levels for skilled and technical labor, contractual services, and maintenance. Staffing positions that are, or could become, vacant during this contract may be filled by utilizing this proposed contract due to staffing requirements. The proposed contract is budgeted for areas at the Water Resource Recovery Facility, Combined Sewer Overflow facilities and conveyance infrastructure. This proposed contract amendment exceeds the current Financial Plan. Should the contract be used to its maximum value, a budget amendment would be required, first drawing from other cost categories, and secondly from the unallocated reserve.
Funding Source: Operations & Maintenance Budget
Cost Centers: Multiple cost centers at the Water Resource Recovery Facility (892201 - 892226)
Multiple cost centers at the Combined Sewer Overflow Facilities (892271 - 892279)
Multiple cost centers at the Sewage Pumping Facilities (892342 - 892352)
Expense Types: Transitional Labor (616100)
Contractual Operating Services (617900)
Equipment Repairs & Maintenance (622300)
Facilities Repairs & Maintenance (622400)
Estimated Cost by Year and Related Estimating Variance:
Fiscal Year Amount
FY 2022 Amended Budget 0.00 (*)
FY 2023 Amended Budget 11,799,309.44
FY 2024 Amended Budget 10,543,301.68
FY 2025 Budget 10,540,533.60
FY 2026 Financial Plan (Prorated) 9,701,078.00
Total Financial Plan Forecast $ 42,584,222.72
Proposed Contract Amount $ 44,881,439.12
Forecast Variance (positive/ (negative)) ($2,297,216.40)
(*) Activity and billings under this contract did not begin until July 2022
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on March 12, 2025. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This item may impact the shared services agreement between GLWA and DWSD under OPS-008.