Title
Proposed Amendment No. 2
Contract No. 2301148/SCN-0000488
Water Transmission Main, Valve, Emergency and Other Urgent Repairs
CIP #170602/BCE Score: 73.6
Body
Agenda of: December 11, 2024
Item No.: 2024-407
Amount: Original Contract $21,500,000.00
Amendment No. 1 0.00
Proposed Amendment No. 2 20,000,000.00
Total Contract Amount $41,500,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: November 27, 2024
RE: Proposed Amendment No. 2
Contract No. 2301148/SCN-0000488
Water Transmission Main, Valve, Emergency and Other Urgent Repairs
Vendor: Ric-Man Construction 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. 2301148/SCN-0000488, Proposed Amendment No. 2, “Water Transmission Main, Valve, Emergency and Other Urgent Repairs” with Ric-Man Construction, Inc., at an increased cost of $20,000,000.00 for a total cost not to exceed $41,500,000.00 and no increase in duration for a total duration of 1,825 days; 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 Main System consists of a network of approximately 800 miles of large (greater than 24-inch diameter) water mains that serve 3.9 million people across 115 communities that are represented by 88 member partners in eight counties of southeastern Michigan. There are approximately 10,000 air, blow-off, and isolation valves associated with these water mains. The average pipe age is over 60 years old with some exceeding 150 years in age. This Contract No. 2301148 provides responses to water main breaks/leaks, 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. In addition, this contract provides support to the Linear System Integrity Program, Valve Exercising Program, Capital Improvement Plan and GLWA/DWSD decommissioning program. This contract is one of two concurrent emergency repair contracts, the other being Contract No. 2003730, that GLWA intends to maintain on a staggered basis. This Proposed Amendment No. 2 is requesting $20,000,000.00 to repair the damage pipe sections on the 36-inch water transmission main on 24 Mile Road that were found during the Linear System Integrity Program (LSIP) inspection. There are a total of 103 renewal pipes, which include 18 sections that are in state of incipient failure. Nine (9) of the 18 incipient failures have been repaired. This leaves nine (9) remaining incipient failures and 85 sections that are past their strength limit of the operating pressure plus 40% of surge allowance. This work is urgent due to placing this transmission main back in service and for phase III of the 96-inch water transmission main relocation project, CIP 122004. Amendment No. 1 was for labor rate increase for the laborers and pipelayers.
JUSTIFICATION
Due to the size of GLWA’s Water Transmission Main System, there will be emergencies and urgent projects throughout the year that will require a quick response to return the system to normal operation. Emergency response contracts give GLWA the ability to have additional crews to address the emergencies and urgent projects. This Proposed Amendment No. 2 is requesting additional funds to make urgent repairs on the 36-inch water transmission main on 24 Mile Road that were found during the Linear System Integrity program (LSIP) inspection. The repairs are required because sections of the main are incipient failures and past the strength limit of the operating pressure. This transmission main shall be in service for CIP No. 122004 - 96-inch water transmission main relocation phase III project. The Contractor made the nine (9) incipient failure repairs previously listed under the Background and is prepared to start the remaining repairs, if approved by the Board of Directors. The Design and State of Michigan ACT 399 Permit for the remaining 85 sections will be accelerated to complete in early 2025. The Contractor will be ready to start Work immediately after receiving the permit(s).
PROJECT MANAGEMENT STATUS
Original Contract Time 1,825 days (08/23/2024 - 08/22/2029)
Amendment No. 1 0 days
Proposed Amendment No. 2 0 days
New Contract Time 1,825 days (08/23/2024 - 08/22/2029)
PROJECT ESTIMATE
Original Contract Price $21,500,000.00
Amendment No. 1 0.00
Proposed Amendment No. 2 20,000,000.00
New Contract Total $41,500,000.00
FINANCIAL PLAN IMPACT
Summary: The proposed contract with Ric-Man Construction, Inc. encompasses Capital Improvement Plan and Operations & Maintenance expenses. The value of the contract is within the current financial plan in total. Sufficient funds will be provided in the Operations & Maintenance (O&M) and CIP financial plan for this contract related to contractual operating services.
Funding Source: Operations & Maintenance (O&M) Budget; CIP 170506; CIP 170602
Cost Center(s): Field Engineering 882411..Centralized Services cost center 882431
Expense Type(s): Construction (616900); Contractual Operating Services-All Water (617901)
Estimated Cost by Year and Related Estimating Variance: See table below.
CIP Plan O&M Budget Total
Original Contract Price $15,000,000.00 $6,500,000.00 $21,500,000.00
Amendment No. 1 0.00 0.00 0.00
Proposed Amendment No. 2 20,000,000.00 0.00 20,000,000.00
New Contract Total 35,000,000.00 6,500,000.00 41,500,000.00
Financial Plan Estimate 35,000,000.00 6,500,000.00 41,500,000.00
Estimating Variance $ 0.00 $ 0.00 $ 0.00
A budget amendment will be necessary to transfer funds from the Linear System Integrity Program No. 170600 to CIP No. 170602. The CIP financial plan (forecast) is per the FY 2025 - 2029 CIP Plan and is a combination of CIP No. 170506 ($15,000,000.00) and CIP Program No. 170600 ($20,000,000.00). This amendment only encompasses CIP No. 170602.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on December 11, 2024.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.