Title
Proposed Change Order No. 1
Contract No. 2302932/(SCN-0000231)
Emergency Incineration Complex II Conveyor System Fire Protection Implementations
I&E
Body
Agenda of: February 26, 2025
Item No.: 2025-038
Amount: Original Contract $1,323,000.00
Proposed Change Order No. 1 0.00
Total Contract Amount $1,323,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: January 27, 2025
RE: Contract No. 2302932/SCN-0000231
Emergency Incineration Complex II Conveyor System Fire Protection Implementations
Vendor: Commercial Contracting Corporation
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. 2302932(SCN-0000231), Proposed Change Order No. 1, “Emergency Incineration Complex II Conveyor System Fire Protection Implementations” with Commercial Contracting Corporation, with no increase in cost for a total cost not to exceed $1,323,000.00 and an increased duration of 111 days for a duration of 385 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA awarded Commercial Contracting Corporation (CCC) the Construction Contract for the Emergency Incineration C-II Conveyor System Fire Protection Improvements Contract No. 230932. The purpose of the Contract is to provide construction services for the pilot phase of fire protection improvements at the Incineration Complex II Facility of the Water Resource Recovery Facility (WRRF).
This includes installing, integrating, and testing various fire detection technologies and constructing a spray nozzle testing skid. The pilot phase will trigger alarm lights rather than fire-preventing misting nozzles, which are planned for a future full-system implementation project.
Based on the current rate of progress, the project is not likely to achieve contract milestone dates. The fiber optic detectors and components, along with other long-lead equipment are expected to be delivered in January 2025, which is after the contract’s Substantial Completion Date. Also, additional coordination is necessary with other work currently underway within the incinerator building, making the progress more challenging. In light of the long lead times on key equipment, the Contractor submitted a request for a time extension, with no additional cost, extending the Substantial and Final Completion milestone dates.
JUSTIFICATION
The Contractor, CCC is requesting a time extension with no additional cost. Therefore, GLWA is recommending extending the project's Substantial and Final Completion dates to April 30, 2025, and June 30, 2025, respectively, with no additional cost.
This time extension request is due to the following circumstances outside the Contractor’s control:
• Change of supplier; where the initial supplier offered a longer lead time, prompting CCC to seek another supplier with an improved lead time.
• Long lead items: Johnson Controls Inc & Emerson (Ovation), the single source supplier of Fiber Optic Detectors and components are anticipated to arrive in January or February of 2025.
PROJECT MANAGEMENT STATUS
Original Contract Time 274 days (06/10/2024 - 03/10/2025)
Proposed Change Order No. 1 111 days (03/11/2025 - 06/30/2025)
New Contract Time 385 days (06/10/2024 - 06/30/2025)
PROJECT ESTIMATE
Original Contract Price $1,323,000.00
Proposed Change Order No. 1 0.00
New Contract Total $1,323,000.00
FINANCIAL PLAN IMPACT
Summary: This proposed emergency contract was not anticipated during the development of the FY 2024 budget or the FY 2025 financial plan. The value of this proposed project exceeds the available Capital Outlay budget for Wastewater Incineration. Therefore, budget amendments will be required for this project. First, offsetting other positive variances within the Water Resource Recovery Facility Capital Outlay budgets, then from other areas, and finally from the unallocated reserves.
Funding Source: Improvement and Extension (I&E) - (5404)
Cost Center(s): Wastewater Incineration Process (892226)
Expense Type(s): Capital Outlay over $5k(I&E-Capitalized) (901100)
Estimated Cost by Year and Related Forecast Variance: See table below.
Fiscal Year Amount
FY 2024 Amended Budget $32,700.00
FY 2025 Budget (Prorated) 319,966.00
Total Financial Plan $352,666.00
Maximum Contract $1,323,000.00
Variance (positive/(negative)) ($970,334.00)
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on February 12, 2025. 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.