Title
Proposed Change Order No. 5
Contract No. GLWA-CON-170/ SCN-0000308
Sludge Removal and Disposal Services at Northeast, Southwest and Springwells Water Treatment Plants
O&M
Body
Agenda of: July 23, 2025
Item No.: 2025-211
Amount: Original Contract $15,298,560.00
Change Order No. 1 3,500,000.00
Change Order No. 2 2,500,000.00
Change Order No. 3 19,608,960.00
Change Order No. 4 12,314,800.00
Proposed Change Order No. 5 4,895,800.00
New Contract Total $58,118,120.00
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, 2025
RE: Proposed Change Order No. 5
Contract No. GLWA-CON-170/SCN-0000308
Sludge Removal and Disposal Services at Northeast, Southwest and Springwells Water Treatment Plants
Vendor: Mobile Dredging and Video Pipe, 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. GLWA-CON-170/SCN-0000308, Proposed Change Order No. 5 “Sludge Removal and Disposal Services at Northeast, Southwest and Springwells Water Treatment Plants” with Mobile Dredging and Video Pipe, Inc., at an increased cost of $4,895,800.00 for a total cost not to exceed $58,118,120.00 at an increased duration of 212 days for a total duration of 3,041 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA-CON-170 is a services contract between GLWA and Mobile Dredging & Video Pipe, Inc. (MDVP) for removing, dewatering, transporting, and disposing sludge from flocculation chambers and sedimentation basins at GLWA’s Northeast, Southwest, and Springwells Water Treatment Plants (WTPs).
GLWA-CON-170 Change Order No. 4 was approved by the Board on February 28, 2024, and initiated in late March 2024. Change Order No. 4 extended the CON-170 contract for one (1) year and six (6) months and increased the total cost by $12,314,800.00. Change Order No. 4 was for one (1) sludge removal event at Northeast, Southwest and Springwells Water Plants. The estimated sludge to be removed under Change Order No. 4 was 1,500 dry tons of sludge from Northeast, 1,500 dry tons of sludge from Southwest, and 2,800 dry tons of sludge from Springwells.
The Change Order No. 4 schedule was significantly delayed after the Southwest WTP suffered chain and flight sludge collector failures in two (2) basins with sludge collector systems that were previously rehabilitated. Both basins required sludge removal before the necessary repairs could be made. These two (2) basins were not included in the original Change Order No. 4 sludge removal schedule. After cleaning the basins, the contractor, MDVP, had to wait for the repairs to be made and the system tested before the subsequent basin could be released for sludge removal.
The delay at Southwest pushed the remaining scheduled sludge removal events past the Change Order No. 4 completion date and delayed the start of sludge removal at Springwells WTP. This delay threatened water quality at Springwells due to the increased accumulation of sludge and the resulting limited capacity to settle water during the approaching high demand season. The time delay also increased the projected sludge accumulation beyond the current funds provided for sludge removal in the purchase order.
JUSTIFICATION
If the sequential schedule of sludge removal remains unchanged, it would increase the risk to water quality management at Springwells WTP to an untenable level during the approaching high demand period. To address this risk, the Contractor, MDVP, was directed to mobilize to Springwells WTP prior to completing the full sludge removal event at Southwest WTP and begin cleaning the sludge laden basins at Springwells. Leaving Southwest before the completion of all sludge removal further delays the schedule for replacement of the automated sludge collectors in Basin 2A and needed repairs of the Residual Handling Facility.
Under this Proposed Change Order No. 5 plan, the Contractor will mobilize a fully staffed and equipped second sludge removal crew to Southwest to complete the sludge removal event, while concurrently removing sludge at Springwells to address the immediate water quality management concerns. The amended schedule keeps Springwells on schedule to meet Michigan Department of Environment, Great Lakes, and Energy (EGLE) regulatory requirement deadlines for the replacement of flocculators and cleaning the 1930s mixing chamber.
The amended schedule also mitigates further delays to the current schedule for the replacement of the sludge collectors at Southwest.
Proposed change Order No. 5 is for the cost of the additional mobilization and demobilization at Southwest, the cost for removal of the increased sludge accumulation at each plant due to the delays, estimated at 1,000 dry tons of sludge at Springwells and 1,300 dry tons of sludge at Southwest, the 27.5% increase ($1,580.00, $2,015.00 a dry ton), in the unit rate for sludge removal at Southwest to cover the contractor’s cost of sourcing equipment and providing a second crew, and the cost of previously unscheduled winter work.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,186 days (01/01/2018 - 03/31/2021)
Change Order No. 1 0 days
Change Order No. 2 0 days
Change Order No. 3 1,095 days (04/01/2021 - 03/31/2024)
Change Order No. 4 547 days (04/01/2024 - 09/30/2025)
Proposed Change Order No. 5 212 days (10/01/2025 - 05/01/2026)
New Contract Time 3,040 days (01/01/2018 - 05/01/2026)
PROJECT ESTIMATE
Original Contract Price $15,298,560.00
Change Order No. 1 3,500,000.00
Change Order No. 2 2,500,000.00
Change Order No. 3 19,608,960.00
Change Order No. 4 12,314,800.00
Proposed Change Order No. 5 4,895,800.00
New Contract Total $58,118,120.00
FINANCIAL PLAN IMPACT
The proposed change request covers Sludge Removal and Disposal Services at Northeast, Southwest and Springwells Water Plants through May 1, 2026. The current FY 2026 budget and five-year financial plan was based on previous experience and work performed. The sludge removal and disposal efforts vary from year to year due to the levels of turbidity of the water. The value of the project exceeds the current financial plan in total; therefore, a budget amendment will be required for this project. First offsetting other positive variances within other contractual operating services; then from the unallocated reserves.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Center(s): Springwells WTP Water Operations cost center 882141
Northeast WTP Water Operations cost center 882151
Southwest WTP Water Operations cost center 882161
Expense Type(s): Contractual Operating Services (617900)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2018 Budget (Prorated) $ 3,838,027.00
FY 2019 Budget 8,063,304.00
FY 2020 Budget 5,659,535.00
FY 2021 Budget 9,573,805.00
FY 2022 Budget 5,182,130.00
FY 2023 Budget 6,558,580.00
FY 2024 Budget 5,893,069.00
FY 2025 Budget 8,453,870.00
FY 2026 Budget (Prorated) 3,730,900.00
Financial Plan Forecast $ 56,953,220.00
Proposed Contract Amount 58,118,120.00
Variance (positive/ (negative)) ($1,164,900.00)
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on July 9, 2025.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.