Title
Proposed Change Order No. 1
Contract No. 1803594
Accusonic Flow Meters Preventative Maintenance Services
Vendor: Hamlett Engineering Sales Company DBA HESCO
Body
Agenda of: March 24, 2021
Item No.: 2021-078
Amount: Original Contract $3,675,532.00
Proposed Change Order No. 1 $396,240.00
Total Contract $4,071,772.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: March 1, 2021
RE: Proposed Change Order No. 1
Contract No. 1803594
Accusonic Flow Meters Preventative Maintenance Services
Vendor: Hamlett Engineering Sales Company DBA HESCO
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. 1803594 Proposed Change Order No. 1, “Accusonic Flow Meters Preventative Maintenance Services” with Hamlett Environmental Sales Company DBA (HESCO), at an increased cost of $396,240.00, for a total cost of $ 4,071,772.00, and no increase in duration, for a total duration of 5 years; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Water Resource Recovery Facility (WRRF) at the Great Lakes Water Authority (GLWA) installed eight Accusonic flow meters as part of the Rouge River Outfall Project in April of 2019. These meters provide critical flow data to ensure the needed chemical addition to the facility effluent to ensure compliance with our NPDES permit requirements for effective disinfection of the effluent. Performing regular maintenance and as needed repairs on these critical assets is necessary to maintain them in proper working order. The manufacturer’s warranty and maintenance services for these meters, included with the original contract expired in September 2020.
JUSTIFICATION
GLWA’s NPDES permit requires the facility effluent to achieve effective disinfection and removal of residual chlorine before discharging to receiving waters. The reliability and accuracy of the flow meters are necessary for operations to effectively measure the chemicals necessary to properly disinfect the facility effluent prior to discharge into the Detroit and Rouge Rivers. Additionally, the information is necessary for monthly discharge reporting to Environment, Great Lakes & Energy - State of Michigan (EGLE) <https://www.michigan.gov/egle/>as required by our NPDES permit. If these eight Accusonic flow meters fail to properly function, it may result in an NPDES permit noncompliance.
PROJECT MANAGEMENT STATUS
Original Contract Time Five (5) years
Proposed Change Order No. 1 No Change
New Contract Time Five (5) years
PROJECT ESTIMATE
Original Contract Price $ 3,675,532.00
Proposed Change Order No. 1 396,240.00
New Contract Total $ 4,071,772.00
FINANCIAL PLAN IMPACT
Summary: The services outlined under this contract are within the scope of the Operations and Maintenance (O&M) budget for the Water Resource Recovery Facility, Secondary operations. Sufficient funds are provided in the financial plan for this project.
Summary: The services outlined under this contact are within the scope of the Operations and Maintenance (O&M) budget for the Water Resource Recovery Facility, Secondary Operations and Combined Sewer Overflow (CSO) facilities. Should the maximum contract be used, and a budget amendment is needed, a reduction will be made in either another category or in the Unallocated Reserve.
Funding Source: Operations and Maintenance (5960 - Sewer)
Improvement & Extension (5404 - Sewer)
Cost Centers: Water Resource Recovery Facility Secondary Processing (892224)
Combined Sewer Overflow Facilities (892271 - 892278)
Expense Type: O&M - Contractual Operating Services (617900)
O&M - Repairs & Maintenance Equipment (622300)
I&E - Capital Outlay over $5k (I&E-Capitalized) (901100)
Estimated Financial Plan by Year and Related Estimating Variance:
FY 2021 Budget (Prorated) 990,100.00
FY 2022 Plan 1,021,930.00
FY 2023 Plan 551,130.00
FY 2024 Plan (Prorated) 433,520.00
Total Financial Plan $2,996,680.00
Original Contract $3,675,532.00
Proposed Change order No. 1 396,240.00
Total Proposed Contract 4,071,772.00
Contract Expenditures to date 871,431.00
Maximum Contract Balance 3,200,341.00
Variance (positive/(negative)) ($203,661.00)
The award of this contract provides a potential variance of -$203,661.00 ($3,200,341.00 project estimate less $2,996,680.00 budget).
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on March 10, 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.