Title
Proposed Change Order No. 1
Contract No. 1802745
Water Transmission Main, Valve and Other Priority Repairs
CIP# 170500 / BCE Score: N/A
Body
Agenda of: June 23, 2021
Item No.: 2021-213
Amount: Original Contract $15,000,000.00
Proposed Change Order No. 1 0.00
Total Revised Contract $15,000,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: June 1, 2021
RE: Proposed Change Order No. 1
Contract No. 1802745
Water Transmission Main, Valve and Other Priority Repairs
Vendor: Ric-Man Construction, 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. 1802745 Proposed Change Order No. 1 “Water Transmission Main, Valve and Other Priority Repairs” with Ric-Man Construction, Inc., with no increase in cost, for a total cost not to exceed $15,000,000.00 and an increased duration of one (1) year for a total contract duration of three (3) years; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The GLWA Water Transmission System consists of a network of approximately 800 miles of large (greater than 24-inch diameter) water mains that serve 3.8 million people across 112 communities that are represented by 88 Member Partners in eight counties of southeastern Michigan. There are approximately 10,000 air, blow-off, and isolation valves associated with these mains. The average system age is over 60 years old with portions exceeding 150 years in age. This contract is used to respond to water main breaks, valve repairs, and other urgent projects as necessary to allow GLWA to provide water of unquestionable quality at the promised level of service to our member partners. There are two concurrent emergency repair contracts that GLWA intends to maintain on a staggered basis. GLWA-CON-181 is currently near completion and its replacement, Contract No. 2003730, is currently in the final stages of procurement prior to recommendation to the Board. This contract also will support valve repairs determined from the Valve Exercising Program and the GLWA/DWSD water main decommissioning efforts.
JUSTIFICATION
The contractor for this work has been performing in accordance with GLWA staff expectations and there is sufficient budget allocated for this work to extend the project for an additional year. Therefore, GLWA staff recommends extension of this contract for an additional year to continue the services.
PROJECT MANAGEMENT STATUS
Original Contract Time 2 years
Proposed Change Order No. 1 1 year
New Contract Time 3 years
PROJECT ESTIMATE
Original Contract Price $15,000,000.00
Proposed Change Order No. 1 0.00
New Contract Total $15,000,000.00
FINANCIAL PLAN IMPACT
Summary: The proposed change order with Ric-Man Construction, Inc. encompasses Capital Improvement Plan (CIP) and Operations & Maintenance (O&M) expenses. The value of the contract is within the current financial plan in total. Sufficient funds will be provided in the O&M and CIP financial plan for this contract related to contractual operating services.
Funding Source: Operations & Maintenance (O&M) Budget, CIP
Cost Centers(s): Field Service Operations..Centralized Services cost center (882431)
Expense Type(s): Contractual Operating Services-All Water (617901); Construction (616900)
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on June 9, 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.