Title
Proposed Change Order No. 2
Contract No. GLWA-CON-197
Modifications to Incineration Sludge Feed Systems in Complex II at WRRF, Package “A”; Replacement of EB-26 Unit Substation, Package “B”; Replacement of Nine MCCs, Package “C”
CIP #213007
Vendor: Weiss Construction Co., LLC
Body
Agenda of: January 26, 2022
Item No.: 2022-006
Amount: Original Contract: $18,631,083.00
Change Order No.1: 905,731.00
Proposed Change Order No. 2: 850,000.00
Total Revised Contract: $20,386,814.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey P.E.
Interim Chief Executive Officer
Great Lakes Water Authority
DATE: January 4, 2022
RE: Proposed Change Order No. 2
Contract No.: GLWA-CON-197
Modifications to Incineration Sludge Feed Systems in Complex II at WRRF, Package “A”; Replacement of EB-26 Unit Substation, Package “B”; Replacement of Nine MCCs, Package “C”
Vendor: Weiss Construction Co., LLC
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 Interim Chief Executive Officer (ICEO) to enter into Contract No. GLWA-CON-197, Proposed Change Order No. 2, “Modifications to Incineration Sludge Feed Systems in Complex II at WRRF, Package “A”; Replacement of EB-26 Unit Substation, Package “B”; Replacement of Nine MCCs, Package “C”.” with Weiss Construction Co., LLC, at an increased cost of $850,000.00 for a total cost not to exceed $20,386,814.00 and for an increased duration of 365 days for a total duration of 1,765 days; and authorizes the ICEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On April 2, 2018, Great Lakes Water Authority gave Notice to Proceed with the contract GLWA-CON-197, to Weiss Construction Co., LLC. This contract is composed of three packages: A, B and C.
Package “A” is the replacement of belt conveyors, screw conveyors, strainers, lighting, motor control centers, and installation of process control equipment that support equipment that replaced belt conveyors destroyed in the fire event in March 2016. The scope of this work also includes repainting the interior spaces of Dewatering Complex II and Incineration Complex II.
Package “B” is the replacement of the EB-26 unit substation which serves as the primary electrical power distribution source for portions of the dewatered sludge cake conveyance equipment in Incineration Complex II.
Package “C” is the replacement of nine Motor Control Centers that provide electrical distribution for the incinerator combustion controls and various electrical systems within Complex II.
Incineration Complex II operates eight multiple hearth incinerators to heat treat approximately 20-25 percent of dewatered sludge cake generated as a byproduct of wastewater treatment at the Water Resource Recovery Facility (WRRF).
The original contract required substantial completion of the project (all packages) by July 31, 2020, and the original required final completion of the project was January 31, 2021. Change Order No. 1 added $905,731.00 to the contract and extended both the substantial and final completion time by 365 days.
As of this Board Letter, the Contractor has completed the rehabilitation of six incinerators and currently rehabilitating the sludge feed system associated with Incinerators #13 and #14. The remaining work under Package A includes the completion of the performance testing of the new belt conveyors, strainers, and screw conveyors, and finishing any owner-requested changes to the contract.
Additionally, On October 29, 2021, GLWA issued a notice of defective work to the contractor (Weiss) and Engineer of Record (Black & Veatch) to correct the sludge conveyance issues experienced by the screw feeders that supply the sludge to the multiple hearth incinerators. The Contractor must complete the retrofits of the screw conveyors to prevent the sludge bridging issue which has become a safety hazard. Package B and C work are complete, with only punch list items remaining to be completed.
JUSTIFICATION
The operational complexity and regulatory constraints of the multiple hearth incinerators limited the availability of units for construction which caused delays to the overall base contract scope.
Additionally, COVID-19 has impacted the contractor’s ability to complete the base contract scope of work by the revised substantial completion date of July 31, 2021. Also, material authorized under Change Order No. 1 experienced delayed deliveries because of supply chain challenges from the pandemic.
Furthermore, proposed in this change order, owner requested modifications to the new belt conveyor guard assemblies, to assist with belt conveyor cleaning efforts within Dewatering Complex II and Incineration Complex II. This retrofit will require approximately four additional months of work by the equipment installers to complete.
The Contractor and GLWA project team estimate that an additional 365 days is needed to the existing substantial and final completion dates to complete the base scope, the additional owner requested changes, and the correction of defective work for this contract.
As of December 2, 2021, the $1,000,000 Provisionary Allowance has been nearly exhausted with a total use of $907,081.77.
Total of additional needs to perform the additional owner requested changes and resolve the open and disputed change proposals is $849,994 (broken down below).
• The Contractor requested additional time and $397,719.00 for the General Conditions cost associated with the time extension on November 4, 2021.
• The estimated cost to perform the owner-requested belt conveyor guard reconfiguration is $360,000.00.
• The total value of the outstanding disputed claims is about $92,275.00.
Therefore, an additional not to exceed $850,000.00 is requested via this proposed change order (Change Order No. 2). Any unused money will be credited back to GLWA through the final change order.
PROJECT MANAGEMENT STATUS
Original Contract Time: 1,035 days (04/02/2018 - 01/31/2021)
Change Order No. 1: 365 days (02/01//2021 - 01/31/2022)
Proposed Change Order No. 2: 365 days (02/01/2022 - 01/31/2023)
New Contract Time: 1,765 days (04/02/2018 - 01/31/2023)
PROJECT ESTIMATE
Original Contract Price $ 18,631,083.00
Change Order No. 1 905,731.00
Proposed Change Order No. 2 850,000.00
New Contract Total: $ 20,386,814.00
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Sewer Construction Fund
Cost Center: Wastewater
Expense Type: Construction (5421-892211.000-616900-213007)
Estimated Cost by Year and Related Estimating Variance: See table below.
Original Contract Price $18,631,083.00
Change Order No. 1: 905,731.00
Proposed Change Order No. 2: 850,000.00
New Contract Total: $20,386,814.00
Amended Financial Plan Estimate: 19,536,814.00
Estimating Variance: ($850,000.00)
The award of this change order creates a negative estimating variance of $850,000.00. This variance will be funded from Capital Reserves.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on January 12, 2022. 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.