Title
Proposed Change Order No. 2
Contract No. 1803312/SCN-0000170
West Service Center Reservoir, Pump House, and Division Valve Replacements
CIP #132010 / BCE Score: 54.0
Body
Agenda of: December 11, 2024
Item No.: 2024-405
Amount: Original Contract Price $44,900,000.00
Change Order No. 1 1,710,000.00
Proposed Change Order No. 2 00.00
New Contract Total $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: November 27, 2024
RE: Proposed Change Order No. 2
Contract No. 1803312/SCN-0000170
West Service Center Reservoir, Pump House, and Division Valve Replacements
Vendor: Kokosing Industrial, Inc.
Status: Amendment/Change Order
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/SCN-0000170, Proposed Change Order No. 2, “West Service Center Reservoir, Pump House, and Division Valve Replacements” with Kokosing Industrial, Inc., with no increase in cost for a total cost not to exceed $46,610,000.00 and an increased duration of 245 days for a total duration of 1,997 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, 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. 2 is requesting an additional 245 days be added to the Final Completion date due to delays during construction caused by supply chain issues, subcontractor performance issues, and differences between the Design Documents developed by the Contractor’s Engineer and the Ovation™ Evergreen Program. The Contractor took various mitigation measures such as increased subcontractor oversight, escalation with subcontractor management, and acceleration of other work activities on the critical path. However, the delays on control activities prevented the turnover of a fully complete and commissioned pump station that was required by the Contract before demolition of the existing decommissioned infrastructure. As a last resort to maintain schedule, the Contractor requested a deviation to the work restrictions for GLWA to allow demolition to be completed through April 2024 with aggressive acceleration efforts including staffing for work 24 hours a day for 6 days of the week. GLWA denied this request after confirming there was inadequate system capacity to allow this work during high demand. Therefore, the demolition work was deferred to the next low demand season (October 2024).
JUSTIFICATION
Allowing for additional time for the Contractor to complete demolition of decommissioned structures and site restoration activities does not negatively affect plant operations since the new facilities installed by this Contract are fully operational. The Contractor is seeking a time extension only with no costs.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,580 days (03/15/2020 - 07/12/2024)
Change order No. 1 171 days (07/13/2024 - 12/30/2024)
Proposed Change Order No. 2 245 days (12/31/2024 - 09/01/2025)
New Contract Time 1,996 days (03/15/2020 - 09/01/2025)
PROJECT ESTIMATE
Original Contract Price $44,900,000.00
Change Order No. 1 1,710,000.00
Proposed Change Order No. 2 00.00
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
Proposed Change Order No. 2 0.00
New Contract Total 46,610,000.00
Amended Financial Plan Estimate 46,610,000.00
Estimating Variance $ 0.00
This proposed change order is for an extension of time only and there is no substantive financial impact.
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.