Title
Proposed Amendment No. 3
Contract No. 2004889 (SCN-0000354)
Specialized Services
O&M
Body
Agenda of: September 25, 2024
Item No.: 2024-281
Amount: Original Contract Price $11,389,132.00
Amendment No. 1 5,694,566.00
Amendment No. 2 5,694,566.00
Proposed Amendment No. 3 1,600,000.00
New Contract Total $24,378,264.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: August 28, 2024
RE: Proposed Amendment No. 3
Contract No. 2004889 (SCN-0000354)
Specialized Services
Vendor: LGC Global, 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. 2004889 (SCN-0000354), Proposed Amendment No. 3, “Specialized Services” with LGC Global, Inc., at an increased cost of $1,600,000.00 for a total cost not to exceed $24,378,264.00 with no increase in duration for a total duration of 1,460 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Contract No. 2004889 is a Specialized Services Contract that has been utilized to assist GLWA with large maintenance and emergency projects to stay in compliance with state and federal regulations. This contract also provides the necessary support for urgent and emergency tasks that require immediate attention. Specifically, GLWA’s major maintenance responsibilities include the performance of corrective (i.e., immediate/urgent/emergency), preventive (i.e., regularly scheduled intervals), and predictive (i.e., measured equipment operational intervals) maintenance on large pumping units, motors, valves and related support equipment at the water treatment plants, water booster stations, pressure regulating valves, remote sites, sewer lift stations and current combined sewer outfalls. This contract provides supplemental specialized services to GLWA, in terms of equipment and staff, to address various specialized tasks outside of the core, day-to-day operations and maintenance tasks of GLWA. Examples include dismantling and installing large (500 horsepower and above) pumps and motors as periodically required for maintenance, repair, and replacement. This proposed Amendment No. 3 is requesting additional funds in the amount of $1,600,000.00 that will be used to staff electricians that are currently supporting GLWA staff. Amendment No.’s 1 and 2 were for the renewal options for additional time and money.
JUSTIFICATION
Specialized Services Contract No. 2004889 is needed to accomplish several urgent and emergency projects throughout the water treatment plants, water booster stations and wastewater collection system to keep these systems in compliance. GLWA does not have sufficient equipment and staff necessary to perform all the crucial emergency specialized functions in addition to providing urgent and emergency maintenance work. This Specialized Services Contract is crucial for GLWA to augment its equipment and provide specialized services to maintain its facilities, and to comply with state and federal regulatory agencies’ directives assuring the health and welfare of GLWA customers in the areas of water treatment, water transmission, sewage transport, collection, and discharge. This contract gives GLWA the flexibility to bring on additional specialized resources when an urgent need or emergency arises.
Proposed Amendment No. 3, that is requesting additional funds, will continue to provide the additional electricians that are currently supporting GLWA to ensure we are addressing urgent and emergency maintenance work.
PROJECT MANAGEMENT STATUS
Original Contract Time 730 days (04/01/2022 - 03/31/2024)
Amendment No.1 365 days (04/01/2024 - 03/31/2025)
Amendment No. 2 365 days (04/01/2025 - 03/31/2026)
Proposed Amendment No. 3 0 days
New Contract Time 1,460 days (04/01/2022 - 03/31/2026)
PROJECT ESTIMATE
Original Contract Price $ 11,389,132.00
Amendment No. 1 5,694,566.00
Amendment No. 2 5,694,566.00
Proposed Amendment No. 3 1,600,000.00
New Contract Total $ 24,378,264.00
FINANCIAL PLAN IMPACT
Summary: The proposed contract with Lakeshore Global Corporation encompasses Operations & Maintenance expense only. If approved, Proposed Amendment No. 3, a negative estimated variance of ($1,600,000.00) is created. This variance will be funded from Reserves.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Center(s): Systems Operations Control………… 882301
Field Service Operations 882431
Belle Isle Pumping Station……………892342
Blue Hill Pumping Station………………892343
Fischer Pumping Station………………892347
Woodmere Pumping Station………….892352
Expense Type(s): Contractual Operating Services (617900)
Contractual Professional Services (617903)
Repairs & Maintenance-Equipment (622300)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2025 Budget $ 0.00
FY 2026 Financial Plan 0.00
Financial Plan Forecast 0.00
Proposed Contract Amount $1,600,000.00
Variance (positive/ (negative)) ($1,600,000.00)
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on September 11, 2024. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
The proposed procurement of this item will be shared by the GLWA and DWSD as outlined in the Shared Services Agreement.