Title
Proposed Amendment No. 2
Contract No. GLWA-CS-277
Fourteen Mile Road PCCP Water Main Condition Assessment and Pilot Study Evaluation
Body
Agenda of: January 27, 2021
Item No.: 2021-001
Amount: Original Contract $2,277,315.00
Amendment No. 1 0.00
Proposed Amendment No. 2 571,536.00
Total Revised Contract $2,848,851.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: January 6, 2021
RE: Proposed Amendment No. 2
Contract No. GLWA-CS-277
Fourteen Mile Road PCCP Water Main Condition Assessment and
Pilot Study Evaluation
Vendor: Pure Technologies U.S., 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. GLWA-CS-277 Proposed Amendment No. 2 “Fourteen Mile Road PCCP Water Main Condition Assessment and Pilot Study Evaluation” with Pure Technologies U.S., Inc., at an increased cost of $571,536.00 for a total cost not to exceed $2,848,851.00 and an increased duration of 60 months for a total contract duration of 90 months; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
This project is a pilot for the inspection and monitoring of prestressed concrete cylinder pipe (PCCP). Prior to installing a monitoring system, an inspection was required to determine the existing distress in the transmission main to determine if a monitoring system was justified. Distressed pipes were detected during the inspection; therefore, the monitoring system is justified in order to detect further prestressing wire breaks.
JUSTIFICATION
The increase in project cost covers the warranty and monitoring services for the acoustic fiber optic cable (AFO) that monitors the prestressed concrete cylinder pipe for prestressing wire breaks.
PROJECT MANAGEMENT STATUS
Original Contract Time 18 months
Amendment No. 1 12 months
Proposed Amendment No. 2 60 months
New Contract Time 90 months
PROJECT ESTIMATE
Original Contract Price $2,277,315.00
Amendment No. 1 0.00
Proposed Amendment No. 2 571,536.00
New Contract Total $2,848,851.00
FINANCIAL PLAN IMPACT
Summary: The proposed contract with Pure Technologies U.S., Inc. encompasses Improvement & Extension and Operations & Maintenance (O&M) expenses. The value of the contract is within the current financial plan in total. Sufficient funds will be provided in the Improvement & Extension (I&E) and Operations & Maintenance financial plan for this contract related to contractual professional services.
Funding Source: Improvement & Extension (I&E)
Operations & Maintenance (O&M) Budget
Cost Center(s): Field Service Operations, Centralized Services Operations cost center 882431
Expense Types: Contractual Professional Services (617903)
Estimated Cost by Year and Related Forecasted Variance: See table below.
Fiscal Year Amount
FY 2019 Budget (I&E) $1,094,429
FY 2020 Budget (I&E) 1,094,429
FY 2021 Budget (I&E) 0*
FY 2022 Financial Plan (O&M) 150,000
FY 2023 Financial Plan (O&M) 150,000
FY 2024 Financial Plan (O&M) 150,000
FY 2025 Financial Plan (O&M) 150,000
FY 2026 Financial Plan (O&M) 150,000
Financial Plan Forecast $2,938,858
Proposed Contract Amount $2,848,851
Variance (positive/ (negative)) $90,007
*FY 2021 total budgeted amount is $0.00 for the water main condition assessment monitoring services. Contract was scheduled to end in FY 2020. Due to time delays related to COVID-19, an extension was requested to complete the assessment portion of the project in FY 2021. Therefore, a budget amendment (Improvement & Extension (I&E) will be required to capture the FY 2021 prorated amount of $1,000,000 for Pure Technologies U.S., Inc.
SAVINGS, COST OPTIMIZATION, AND REVENUE ENHANCEMENT IMPACT
The award of this contract provides a variance of $90,007 ($2,938,858 financial plan forecast less $2,848,851 proposed contract amount). 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 January 13, 2021. 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.