Title
Proposed Change Order No. 6
Contract No. GLWA-CS-060/SCN-0000212
Study/Design of the Upgraded Sludge Conveyance System and Lighting Improvements at the Detroit Wastewater Treatment Plant
CIP #213007/BCE Score: 96.2
Body
Agenda of: December 11, 2024
Item No.: 2024-403
Amount: Original Contract $1,990,000.00
Change Order No. 1 96,404.00
Change Order No. 2 0.00
Change Order No. 3 0.00
Change Order No. 4 0.00
Change Order No. 5 0.00
Proposed Change Order No. 6 0.00
Total Contract Amount $2,086,404.00
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 25, 2024
RE: Proposed Change Order No. 6
Contract No. GLWA-CS-060/SCN-0000212
Study/Design of the Upgraded Sludge Conveyance System and Lighting Improvements at the Detroit Wastewater Treatment Plant
Vendor: Black & Veatch Ltd. of Michigan
Status: Amendment/Change Order
MOTION
Upon recommendation of Navid Mehram, Chief Operating Officer - Wastewater Operating 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-060/SCN-0000212, Proposed Change Order No. 6, “Study/Design of the Upgraded Sludge Conveyance System and Lighting Improvements at the Detroit Wastewater Treatment Plant” with Black & Veatch Ltd. of Michigan, with no increase in cost for a total cost not to exceed $2,086,404.00 and an increased duration of 365 days for a total duration of 3,565 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Black & Veatch Limited of Michigan was awarded the original Contract. The main objective of the Black & Veatch Consultant Services Contract was to restore sludge conveyance capacity lost due to the March 2016 fire damage while providing improved sludge conveyance from each dewatering facility to improve operations and minimize future risks. To achieve that goal, evaluation study and design and construction assistance was needed. On April 14, 2018, Black & Veatch was granted a Contract Change Order No. 1 for additional design and construction assistance activities, which increased the total Contract value to $2,086,404.00. The Contract duration was also extended via Change Order No. 1.
On May 26, 2021, Black & Veatch was granted a Contract Change Order No. 2 to extend the Contract time, due to delays in the related Construction Contract, GLWA-CON-197, caused by unforeseen conditions and the COVID-19 pandemic.
On June 22, 2022, Black & Veatch was granted a Contract Change Order No. 3 to extend the Contract time from June 30, 2022, to June 30, 2023, due to equipment performance issues that were delaying completion of the related construction Contract, GLWA-CON-197.
On July 26, 2023, Black & Veatch was granted Contract Change Order No. 4 to extend the Contract time from June 30, 2023, to January 31, 2024, due to ongoing performance issues associated with some of the new equipment and other issues that necessitated design revisions and therefore delay the completion of the related construction Contract, GLWA-CON-197.
On January 1, 2024, Black & Veatch was granted Contract Change Order No. 5 to extend the Contract time, due to the ongoing performance issues with some of the new equipment and other issues that necessitated design revisions and therefore delay the completion of the related construction Contract GLWA-CON-197. For each of the abovementioned Contract Change Orders, the contract value remained at $2,086,404.00. The performance issues are still ongoing, and the consultant service Contract GLWA-CS-060 with Black & Veatch needs to be extended to ensure uninterrupted engineering services to the associated construction Contract GLWA-CON-197, without additional cost, to allow time to complete the root cause analysis of the system failure, complete start-up tests successfully, and finalize closeout documentation.
JUSTIFICATION
The time extension of the current consultant services Contract (GLWA-CS-060) held with Black & Veatch is necessary due to ongoing performance issues with the new equipment and other issues which resulted in failure of 30-day performance test of the conveyance system. The Contractor under the associated construction contract GLWA-CON-197 is still going through the process needed to understand why the motors continue to fail so that the equipment is reliable long after the completion of the 30-day performance test. Black & Veatch Contract GLWA-CS-060 is recommended to be extended to ensure uninterrupted services to the associated construction contract GLWA-CON-197 until the completion of the root cause analysis, completion of the 30-day performance test successfully, and finalization of the project closeout documentation.
Considering the above, GLWA Wastewater Operations recommends extending the Final Completion date of GLWA-CS-060 Contract with no increase in the Contract amount.
PROJECT MANAGEMENT STATUS
Original Contract Time 914 days (04/29/2016 - 10/29/2018)
Change Order No. 1 974 days (10/30/2018 - 06/29/2021)
Change Order No. 2 366 days (06/30/2021 - 06/30/2022)
Change Order No. 3 365 days (07/01/2022 - 06/30/2023)
Change Order No. 4 215 days (07/01/2023 - 01/31/2024)
Change Order No. 5 366 days (02/01/2024 - 01/31/2025)
Proposed Change Order No. 6 365 days (02/01/2025 - 01/31/2026)
New Contract Time 3,565 days (04/29/2016 - 01/31/2026)
PROJECT ESTIMATE
Original Contract $1,990,000.00
Change Order No. 1 96,404.00
Change Order No. 2 0.00
Change Order No. 3 0.00
Change Order No. 4 0.00
Change Order No. 5 0.00
Proposed Change Order No. 6 0.00
Total Contract Amount $2,086,404.00
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Sewer Construction Fund
Cost Center: Wastewater
Expense Type: Design (5421-892211.000-617950-213007)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price: $1,990,000.00
Amendment No. 1 96,404.00
Amendment No. 2 0.00
Amendment No. 3 0.00
Amendment No. 4 0.00
Amendment No. 5 0.00
Proposed Amendment No. 6 0.00
New Contract Total: $2,086,404.00
Amended Financial Plan Estimate: $2,086,404.00
Estimating Variance: 0.00
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.