Title
Proposed Change Order No. 2
Contract No. 2003730/SCN-0000386
Water Transmission Main, Valve and Other Priority Repairs
CIP #170504 / BEC Score: N/A
Body
Agenda of: February 25,2026
Item No.: 2026-031
Amount: Original Contract $15,000,000.00
Change Order No.1 12,000,000.00
Proposed Change Order No. 2 2,000,000.00
Contract Total $29,000,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: January 30, 2026
RE: Proposed Change Order No. 2
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. 2, “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 $29,000,000.00 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 3.8 million people across 115 communities that are represented by 88 member partners in eight (8) counties of southeastern Michigan. There are approximately 10,000 valves; 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 14 Mile Road Transmission Main rehabilitation from 2021.
JUSTIFICATION
The additional funds are being requested due to expenses associated with the 54-inch water main break on Beard Street in Southwest Detroit in February 2025 and the 42-inch water main break along 14 Mile Road in September 2025. The requested funds should allow this contract to be funded for the remaining contract term. This will allow the Contractor to continue to respond to urgent/emergencies within the system, provide support to our Linear System Integrity Program, and Decommissioning Program.
PROJECT MANAGEMENT STATUS
Original Contract Time 5 years (10/08/2021 - 10/7/2026)
Change Order No. 1 0 years
Proposed Change Order No. 2 0 years
New Contract Time 5 years (10/08/2021 - 10/7/2026)
PROJECT ESTIMATE
Original Contract Price $15,000,000.00
Change Order No. 1 12,000,000.00
Proposed Change Order No. 2 2,000,000.00
New Contract Total $29,000,000.00
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 $10,000,000.00 $5,000,000.00 $15,000,000.00
Change Order No. 1 8,400,000.00 3,600.000.00 12,000,000.00
Proposed Change Order No. 2 875,000.00 1,125,000.00 2,000,000.00
New Contract Total 19,275,000.00 9,725,000.00 29,000,000.00
Financial Plan Forecast 18,400,000.00 9,500,000.00 27,900,000.00
Estimating Variance ($ 875,000.00) ($ 225,000.00) ($1,100,000.00)
The award of this change order provides an estimated O&M negative variance of ($225,000.00) and a CIP negative estimating variance of $875,000.00. A budget amendment will be necessary to record the estimating variance and will be funded from Program No. 170500. The CIP financial plan (forecast) is from the FY 2026-2030 CIP Plan. Contractual services are dependent on several factors such as delays in estimated start and end dates, environmental constraints, and other unforeseen circumstances that can cause the expenses to fluctuate from fiscal year to fiscal year.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on February 11, 2026. 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.