Title
Proposed Amendment No. 3
Contract No. GLWA-CS-1671
Professional Engineering Services for Steam, Condensate Return and Compressed Air Piping Improvement at Springwells Water Treatment Plant
CIP #114011 / BCE Score: 77.0
Body
Agenda of: November 17, 2022
Item No.: 2022-491
Amount: Original Contract $ 926,363.22
Amendment No. 1 605,759.22
Amendment No. 2 0.00
Proposed Amendment No. 3 289,004.49
Total Revised Contract $1,821,126.93
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: October 28, 2022
RE: Proposed Amendment No. 3
Contract No. GLWA-CS-1671
Professional Engineering Services for Steam, Condensate Return and Compressed Air Piping Improvement at Springwells Water Treatment Plant
Vendor: METCO Services, Inc.
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. GLWA CS-1671 Proposed Change Order No. 3 “Professional Engineering Services for Steam, Condensate Return and Compressed Air Piping Improvement at Springwells Water Treatment Plant” with METCO Services, Inc., at an increased cost of $289,004.49 for a total cost not to exceed $1,821,126.93 and an increased duration of 365 days for a total contract duration of 2,832 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Contract No. GLWA-CS-1671 is an engineering contract involving design, bid, construction administration, and resident project representation (RPR) services for the demolition and replacement of over 60,000 linear feet of steam, condensate, compressed air, and natural gas piping systems at the Springwells Water Treatment Plant. This contract was awarded to METCO Services, Inc. (METCO) on May 18, 2016. The construction phase of this CIP project is under Contract No. GLWA-CON-252. The Board approved Change Order No. 1 for GLWA-CON-252 on July 27, 2022, that included replacement of the steam generators. This proposed amendment provides construction administration and resident project representative services for replacement of the steam generators.
Springwells Water Treatment Plant uses three (3) steam generators within the Turbine House to supply heat plant wide. The three (3) steam generators were put into service in 1998 and includes two 300 horsepower steam generators (#1 and #2) and one 500 horsepower steam generator (#3). During the heating season, it is typical to heat the facility with one 500 HP steam generator or two 300 horsepower steam generators. The last heating season that concluded in late April 2022 uncovered multiple steam generator issues that are damaging equipment and piping recently installed through GLWA-CON-252 that was not present in previous years. Uniform layers of magnetite (black) iron oxide were found within new steam traps in the distribution piping due to carryover from the steam generator. In some cases, new steam traps were excessively fouled within 30 days, failed, and required maintenance. The areas that are supplied by steam lines immediately downstream of the steam generators had steam trap failure rates at much higher rates (e.g., Turbine House basement failure rates above 50% for the area with 32 failed traps out of 49, versus the pump house that was <2% for the area with 1 failed trap out of 77). Steam treatment chemicals that should be constrained within the steam generator were found out in the distribution system through GLWA sampling that could only be present from poor quality steam. This condition will damage and prevent proper operation of the steam and condensate system from erosion of piping and steam hammer due to excessive condensate loads, degradation of components not rated for chemical compatibility leading and build-up of iron deposits. Furthermore, the steam generators have had an increasing frequency of spurious stops which causes additional startup cycles that leave the plant without heat.
This proposed amendment is requesting $289,004.49 for construction administration and RPR services for the replacement of the steam generators and additional 365 days to the final completion date.
Two previous amendments for GLWA-CS-1671 are summarized as follows:
• Amendment No. 1 was Board approved on March 27, 2019, and added $605,759.22 and extended the Contract to February 18, 2023. This amendment aligned the performance period with the separate and associated Construction Contract and provided for full time RPR coverage.
• Amendment No. 2 clarified overtime rates and terms. This amendment did not add cost or time.
JUSTIFICATION
Professional engineering services are needed to support the steam generator replacement that was added to the separate and associated contract GLWA-CON-252. This includes reviewing construction submittals, resolving field conflicts, connecting to existing systems that include steam, condensate, natural gas, feedwater, electrical, monitoring, and independent inspection of installation and commissioning. METCO is best suited to provide this service to ensure that the new steam generators are properly selected and installed to work with the existing system that was designed by METCO, and to maintain the continuity of the extension of GLWA-CON-252 to its final completion and closeout. Additionally, METCO has extensive experience with the plant, staff, and heating system operation that allows for streamlined work and tailored product applications.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,126 days (05/16/2016 - 06/18/2019)
Amendment No. 1 1,341 days (06/18/2019 - 02/18/2023)
Amendment No. 2 0 days N/A
Proposed Amendment No. 3 365 days (02/19/2023 - 02/18/2024)
New Contract Time 2,832 days (05/16/2016 - 02/18/2024)
PROJECT ESTIMATE
Original Contract Price $926,363.22
Amendment No. 1 605,759.22
Amendment No. 2 0.00
Proposed Amendment No. 3 289,004.49
New Contract Total $1,821,126.93
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Water Construction Bond
Cost Center: Water Engineering
Expense Type: Construction (5519-882111.000-617950-114011)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price $926,363.22
Amendment No. 1 605,759.22
Amendment No. 2 0.00
Proposed Amendment No. 3 289,004.49
New Contract Total $1,821,126.93
Amended FY23 Financial Plan Estimate 1,385,000.00
Negative Estimating Variance $(436,126.93)
The FY 23-27 CIP Plan provides sufficient funding to support the anticipated FY 23 spend increase of $260,000.00 related to the proposed Amendment No. 3. The total contract negative estimating variance of $436,126.93 has been taken into consideration in the Fiscal Year 24 - 28 Draft CIP which contains $17,760,000.00 in funding to support the total contract. Future iterations of the CIP plan will be updated for the contract value.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on November 9, 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.