Title
Proposed Amendment No. 2
Contract No. 1803705
Comprehensive Corrosion Control Optimization Study
O&M
Body
Agenda of: November 16, 2023
Item No.: 2023-412
Amount: Original Contract $6,931,618.82
Amendment No. 1 779,000.00
Proposed Amendment No. 2 184,360.00
Total Revised Contract $7,894,978.82
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: October 27, 2023
RE: Proposed Amendment No. 2
Contract No. 1803705
Comprehensive Corrosion Control Optimization Study
Vendor: Arcadis of Michigan, LLC
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. 1803705, Proposed Amendment No. 2, “Comprehensive Corrosion Control Optimization Study” with Arcadis of Michigan, LLC, at an increased cost of $184,360.00 for a total cost not to exceed $7,894,978.82, with no increase in duration for a total duration of five (5) years; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Contract No. 1803705 for Comprehensive Corrosion Control Optimization Study that will identify an optimized treatment approach to minimize lead and copper concentrations at consumer taps while at the same time averting adverse secondary impacts that can occur when treatment changes are made. The Corrosion Control Study is being used to test the effectiveness of different corrosion control treatments by installing pipe loop rigs at our five water treatment plants and at five other “satellite” locations within the regional water system. There are 40 pipe loop rigs in total.
The original contract amount was in the amount of $6,931,618.82. Amendment No. 1 authorized additional work in the amount of $779,000.00 for additional build-out requirements for the 10 pipe rigs to include:
1. Construction administration, testing, startup, and commissioning of the loop rigs
2. Loop fabrication and installation at the 10 sites
3. Brass and copper with leaded solder materials upgrades
4. Chemical pumps, tubing and secondary containment required for the loop rigs
The original scope of work and Amendment No. 1 did not account for the demolition of the rigs after the completion of the study or for the three months of continued operation of the rigs post-study to maintain the existing pipe conditions if a data anomaly is observed in the last month of data and subsequent statistical analysis. Proposed Amendment No. 2 is requesting an additional $184,360.00 to be added to Task 13 Provisionary Allowance.
The breakdown of the additional funds is below:
• Demobilization of 40 pipe loop rigs = $124,360.00
• Monthly Additional Operation Costs - $20,000.00 x 3 Months = $60,000.00
JUSTIFICATION
With the completion of the Comprehensive Corrosion Control Study, the rigs must be demobilized, and the rigs should be in service for an additional three months to ensure that if there are any data anomalies and additional samples are required, the existing pipe conditions are maintained. These two items were not in the original scope of work of the contract. Adjusting the budgeted amount for Task 13 Provisionary Allowance in this Amendment No. 2 will allow GLWA to successfully conclude the Comprehensive Corrosion Control Optimization Study.
PROJECT MANAGEMENT STATUS
Original Contract Time 5 years (07/24/2019 - 08/11/2024)
Amendment No. 1 0 years
Proposed Amendment No. 2 0 years
New Contract Time 5 years (07/24/2019 - 08/11/2024)
PROJECT ESTIMATE
Original Contract Price $6,931,618.82
Amendment No. 1 779,000.00
Proposed Amendment No. 2 184,360.00
New Contract Total $7,894,978.82
FINANCIAL PLAN IMPACT
Summary: The contract with Arcadis of Michigan LLC encompasses Operations & Maintenance expense only. Sufficient funds are provided in the financial plan for this project.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Center(s): Water Works Park Water Operations cost center 882131
Springwells WTP Water Operations cost center 882141
Northeast WTP Water Operations cost center 882151
Southwest WTP Water Operations cost center 882161
Lake Huron WTP Water Operations cost center 882171
Expense Type(s): Contractual Professional Services (617903)
Estimated Cost by Year and Related Forecast Variance: See table below.
Fiscal Year Amount
FY 2020 Budget $1,100,000.00
FY 2021 Budget 1,308,500.00
FY 2022 Amended Budget 1,475,000.00
FY 2023 Amended Budget 2,100,000.00
FY 2024 Budget 1,540,000.00
FY 2025 Financial Plan (prorated) 371,478.82
Financial Plan Forecast $7,894,978.82
Proposed Contract Amount $7,894,978.82
Variance (positive/ (negative)) 0.00
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on November 8, 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.