Title
Proposed Change Order No. 2
Contract No. 1802745
Water Transmission Main, Valve and Other Priority Repair
CIP #170503 / BCE Score: N/A
Body
Agenda of: April 27, 2022
Item No.: 2022-138
Amount: Original Contract $15,000,000.00
Change Order No. 1 0.00
Proposed Change Order No. 2 0.00
Total Revised Contract $15,000,000.00
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: April 1, 2022
RE: Proposed Change Order No. 2
Contract No. 1802745
Water Transmission Main, Valve and Other Priority Repair
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 Interim Chief Executive Officer (ICEO) to enter into Contract No. 1802745 Proposed Change Order No. 2 “Water Transmission Main, Valve and Other Priority Repair” 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 four (4) years; and authorizes the ICEO 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. Contract No. 1802745 is one of two concurrent emergency repair contracts, the other being Contract No. 2003730 "Water Transmission Main Maintenance, Valve and Other Priority Repairs," that GLWA intends to maintain on a staggered basis. This contract will also support valve repairs determined from the Valve Exercising Program and the GLWA/DWSD water main decommissioning efforts.
JUSTIFICATION
This contract and the companion contract 2003730 are critical to support the ongoing operations, maintenance, and repair for the water transmission system. 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 provided and to provide the necessary contractor capacity to meet the ongoing operational needs of the water transmission system.
PROJECT MANAGEMENT STATUS
Original Contract Time 2 years (08/26/2019 - 08/26/2021)
Change Order No. 1 1 year (08/27/2021 - 08/26/2022)
Proposed Change Order No. 2 1 year (08/27/2022 - 08/26/2023)
New Contract Time 4 years (08/26/2019 - 08/26/2023)
PROJECT ESTIMATE
Original Contract Price $ 15,000,000.00
Change Order No. 1 0.00
Proposed Change Order No. 2 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 Center(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 April 13, 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.