Title
Proposed Change Order No. 1
Contract No. 1803312
West Service Center Pumping Station - Reservoir, Reservoir Pumping, and Division Valve Upgrade
CIP #132010 / BCE Score: 54.0
Body
Agenda of: July 26, 2023
Item No.: 2023-251
Amount: Original Contract $44,900,000.00
Proposed Change Order No. 1 1,710,000.00
Total Revised Contract $46,610,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: June 30, 2023
RE: Proposed Change Order No. 1
Contract No. 1803312
West Service Center Pumping Station - Reservoir, Reservoir Pumping, and Division Valve Upgrade
Vendor: Kokosing Industrial, 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. 1803312, Proposed Change Order No. 1, “West Service Center Pumping Station - Reservoir, Reservoir Pumping, and Division Valve Upgrade” with Kokosing Industrial, Inc., at an increased cost of $1,710,000.00 for a total cost not to exceed $46,610,000.00, and an increased duration of 171 days for a duration of 1,752 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA’s West Service Center Pumping Station (WSC), located in Southfield, Michigan, boosts water pressure through a 54-inch water transmission main to GLWA’s Newburgh Pumping Station, and serves the City of Farmington, Farmington Hills, the City of Livonia, and Redford Township. The existing reservoirs at the WSC were constructed in the mid-1960s and are in poor condition, requiring many structural repairs to maintain good water quality. In addition, the reservoir pumps in reservoir pump house No. 1 experience suction hydraulic issues whereby they cannot be used to pump water out of the reservoir if the reservoir level falls below half full.
Contract No. 1803312 is a Design-Build contract that includes the design and construction services for capital improvements at the WSC that alleviate the aforementioned operational issues. The capital improvements include: demolition of the two existing reservoirs, demolition of the two existing reservoir pump houses including reservoir pumping units and reservoir fill lines, demolition of the existing flow-control division valve vault No. 3, construction of two new wire-wound prestressed concrete water storage reservoirs, construction of one new reservoir pump house equipped with reservoir pumping units and reservoir fill lines, construction of a new flow-control division valve vault No. 3, construction of sewer service for the existing line pumping station, construction of paved access drives to the division valve vaults, and rehabilitation of various division valve vaults. This Proposed Change Order No. 1 is requesting an additional $1,710,000.00 and 171 days added to the Substantial and Final Completion dates due to unexpected compounding delays during the design and construction phases. The delays include but are not limited to finalizing the design of the new controls.
JUSTIFICATION
Due to the poor condition of the existing reservoirs and the suction hydraulic issues of the reservoir pumping system, construction of two new reservoirs and a new reservoir pump house are required to maintain good water quality in the reservoirs and maintain adequate reservoir pumping capacity at the WSC. Additionally, replacement of the flow-control division valve vault No. 3 will improve the transmission system operational flexibility. The proposed capital improvements will also increase system reliability and reduce maintenance and repair costs associated with the aging assets at the WSC.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,581 days 03/15/2020 - 07/12/2024
Proposed Change Order No. 1 171 days 07/13/2024 - 12/30/2024
New Contract Time 1,752 days 03/15/2020 - 12/30/2024
PROJECT ESTIMATE
Original Contract Price $44,900,000.00
Proposed Change Order No. 1 1,710,000.00
New Contract Total $46,610,000.00
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Water Construction Bond
Cost Center: Water Field Engineering
Expense Type: Construction (5519-882411.000-616900-132010)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price $44,900,000.00
Proposed Change Order No. 1 1,710,000.00
New Contract Total 46,610,000.00
Amended Financial Plan Estimate 44,900,000.00
Negative Estimating Variance ($ 1,710,000.00)
A budget amendment will be prepared to fund the negative estimating variance from capital reserves associated with this Proposed Change Order No. 1.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on July 12, 2023. 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.