Title
Proposed Amendment No. 1
CS-1671
Professional Engineering Services for Steam, Condensate Return and Compressed Air Piping Improvement at Springwells Treatment Plant
CIP#/BCE Score: 1248/62.4
Body
Agenda of: March 27, 2019
Item No.: 2019-108
Amount: Original Contract $ 926,363.22
Amendment No. 1 $ 605,759.22
Total Contract $ 1,532,122.44
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: March 6, 2019
RE: Proposed Amendment No. 1
Contract No. CS-1671
Professional Engineering Services for Steam, Condensate Return and Compressed Air Piping Improvement at Springwells Treatment Plant
Vendor: METCO Services, 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. CS-1671 Amendment No. 1 “Professional Engineering Services for Steam, Condensate Return and Compressed Air Piping Improvement at Springwells Treatment Plant” with METCO Services, Inc., to add $605,759.22 and 44 months to the Contract Price and Contract Time, respectively; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Contract No. CS-1671 is a professional engineering services contract that involves the design, construction administration and resident project representation services related to the construction of capital improvements at the Springwells Water Treatment Plant (WTP) under construction Contract No. GLWA-CON-252 “Springwells Water Treatment Plant Steam Condensate Return and Compressed Air Piping Improvements”. The capital improvements include replacement of steam, condensate, compressed air and natural gas piping systems throughout the facility, deaerator and surge tanks, concealed unit heaters in the high-lift building, installing new heating, ventilating and air-conditioning (HVAC) systems in switch room and maintenance office, and installing new sump pumping systems in the conduit pit and condensate pump pit in the maintenance building basement. The professional engineering firm providing services under CS-1671 was awarded to METCO Services, Inc. on April 27, 2016, and the notice to proceed was issued on May 18, 2016. The contract is currently set to end on June 18, 2019. The associated construction contract, GLWA-CON-252, started on February 1, 2019 and ends August 1, 2022. Based solely on the alignment of the two contracts, CS-1671 needs to be extended by 44 months to cover the entire construction duration and include time for closeout activities. The new contract end date for CS-1671 will be February 18, 2023 through this proposed Amendment No. 1. The additional time will allow the engineering contract to extend beyond the anticipated completion of GLWA-CON-252 construction contract and afford enough time for closeout activities under CS-1671.
JUSTIFICATION
The construction duration was specified as 24 months in the request for proposals (RFP) and formed the basis for the CS-1671 contract. As the detailed design was developed, GLWA staff determined that a construction duration of 42 months was more realistic based on the construction work involved. In addition, the RFP and contract for CS-1671 did not include time for closeout activities after construction and is anticipated to take 6 months. Additional time and budget for engineering services under CS-1671 are needed to provide adequate construction administration and resident project representation services that are commensurate with the scope and complexity of construction.
PROJECT MANAGEMENT STATUS
Original Contract Duration 37 months (5/18/16 to 6/18/19)
Proposed Amendment No. 1 44 months (extend 6/18/19 to 2/18/23)
New Contract Duration 81 months
PROJECT ESTIMATE
Original Contract Amount $ 926,363.22
Proposed Amendment No. 1 $ 605,759.22
New Contract Amount $ 1,532,122.44
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Water Construction Bond
Cost Center: Water Engineering
Expense Type: Construction (5519-882111.000-617950-114011)
Estimated Cost by Year and Related Estimating Variance: See table below.
Based on 2020-2024 CIP Preliminary Draft# 2:
Pre-FY2019 Budget $ 131,500.00
FY2019 Budget 141,000.00
FY2020 Budget 228,000.00
FY2021 Budget 198,000.00
FY2022 Budget 228,000.00
Financial Plan Estimate $ 926,500.00
New Contract Value Inclusive of Proposed Amendment 1,532,122.44
Negative Estimating Variance $ (605,622.44)
Variance to be funded by a budget amendment from Capital Reserves.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on March 13, 2019. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented, subject to receiving a “post-mortem” report from staff.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.