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CHANGE ORDER NO. ONE TO CONTRACT K-1516-33: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND MCKEE UTILITY CONTRACTORS, INC., INCREASING THE CONTRACT AMOUNT BY $26,371.86 FOR A REVISED CONTRACT AMOUNT OF $3,364,056.86 FOR THE ROBINSON STREET WATER LINE PROJECT, PHASE I AND FINAL ACCEPTANCE OF THE PROJECT.
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BACKGROUND: The Robinson Waterline Replacement project (WA0195) was expected to replace approximately 5,300 feet of deteriorated 24-inch waterline along Robinson generally between 24th Avenue NW and the Brookhaven Water Tower. This cast iron waterline was constructed in the early 1970's and has had numerous leaks resulting in significant loss of water and damage to the overlying or adjacent roadway. Repairs to this large diameter water line are very expensive, time consuming for Norman Utilities Authority (NUA) and Norman Public Works staff and are disruptive to traffic in the area as repairs are completed.
Request for Proposal (RFP) 1314-28 was distributed to consultants and the review team selected Alan Plummer and Associates, Inc. (APAI), with office in Oklahoma City, as most qualified consultant for the project. On January 28, 2014, the NUA approved Contract K-1314-110 with APAI for preliminary design, surveying and geotechnical services. At the completion of the preliminary design phase, the NUA selected the “best” alternative for providing a reliable, appropriately sized, water transmission line serving western Norman. A technical memorandum was prepared which evaluated three alternative alignments. Alignment 2 was selected due to reduced length of waterline, better system hydraulics, reduced operation and maintenance costs, and reduced traffic impacts.
On October 14, 2014, the NUA approved Amendment No. 1 authorizing APAI to provide final design, bidding and construction management for the proposed waterline identified as Alignment 2A (Phase 1). The amendment was written so that Alignment 2B (Phase 2) could be added and designed in future if approved by the NUA. On November 10, 2015, the NUA approved Amendment No. 2 authorizing APAI to provide final design, bidding and construction management for Phase 2 as well as extend the design length for Phase 1.
On June 14, 2016, the NUA approved Contract K-1516-33 in the amount of $3,337,685 with McKee Utility Contractors, Inc. for the construction of Phase 1 of the Robinson Street Water Line Project at I-35. Phase 1 construction was completed on March 21, 2017.
DISCUSSION: Proposed final Change Order No. 1 will reconcile “as-bid” to “as-built” quantities, incorporate unanticipated items of new work, and pay an early completion bonus. As shown in the change order, the overall project cost will increase by a total of $26,371.86 or approximately 0.8% over the original contract amount.
As detailed in the change order, the reconciliation of “as-bid” to “as-built” quantities will decrease the contract amount by $105,984. The main reasons for the reduction were a reduced quantity of 30-inch waterline saving $62,713 and less curb and gutter repair saving $21,933.
The unanticipated items of new work were as follows:
1. The bore pit at Rambling Oaks and Robinson was directly adjacent to a traffic signal; additional rock and concrete were added at this location to stabilize the traffic signal and prevent movement. This work increased the contract amount by $19,737.91.
2. An existing fire vault at the Homeland grocery store located at 24th Avenue NW and Robinson interfered with the new waterline alignment and had to be relocated. This work increased the contract amount by $22,448.
3. Additional sod was required to repair the disturbed area within the I-35 corridor. This work increased the contract amount by $22,200.
4. A collapsed storm sewer was found under an alley entry approach to the Mile of Cars and had to be replaced. The storm sewer was replaced and additional concrete repairs to the alley were completed increasing the contract amount by $7,410.
5. Two 6-inch 45 degree bends were necessary but were not included in the original bid. A new unit price of $280 was negotiated increasing the contract amount by $560.
6. Additionally, an early completion bonus of $2,000 per day for up to 30 days was offered in the contract documents for completing the 30-inch waterline within the time frame allocated for this work. The Contractor completed this waterline and all reconnections to place it into operation on December 21, 2016 which was 33 days ahead of schedule. Therefore, the Contractor is due full bonus of $60,000.
Our consultant APAI has verified the payment documents and recommends final payment. Funds in the amount of $985,374.39 are available in Construction Account 031-9360-462.61-01 to fund this change order increasing the contract by $26,371.86.
RECOMMENDATION: It is recommended that the City of Norman and the Norman Utilities Authority approve Final Change Order No. 1 to Contract K-1516-33 with McKee Utility Contractors, Inc. increasing the contract amount by $26,371.86 for a revised contract amount of $3,364,056.86. It is also recommended that the City of Norman and the Norman Utilities Authority accept the Robinson Street Waterline project and authorize final payment in the amount of $272,469.11 to McKee Utility Contractors, Inc.