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CHANGE ORDER NO. ONE TO CONTRACT K-1415-103: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND MCKEE UTILITY CONTRACTORS, INC., INCREASING THE CONTRACT AMOUNT BY $146,015.90 FOR A REVISED CONTRACT AMOUNT OF $2,276,900.90 FOR THE LINDSEY STREET WATERLINE IMPROVEMENTS, SECTION B, AND FINAL ACCEPTANCE OF THE PROJECT.
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BACKGROUND: On November 22, 2011, the Norman City Council approved Programming Resolution R-1112-63, requesting federal funds for the widening and reconstruction of Lindsey Street, between 24th Avenue SW and east of Berry Road. In order to receive the federal funding, the City of Norman is required to enter into an agreement with ODOT to complete the design, acquire all necessary rights-of-way and relocate utilities and remove encroachments at the City’s cost. The roadway portion of the project includes transportation and aesthetic improvements to Lindsey Street between Interstate 35 and Berry Road. The storm water portion of the project addresses the flooding problems along West Lindsey Street, most notably at the Lindsey Street and McGee Drive intersection.
On August 28, 2012, the citizens of Norman voted in favor of a Bond Issue to finance the local share of eight transportation/storm water improvement projects. One of the projects is Lindsey Street from 24th Avenue SW to Berry Road. On December 18, 2012, Council approved the design contract for this project with Leidos Engineering LLC, (formally SAIC, LLC). On October 22, 2013, the City of Norman and the Norman Utilities Authority (NUA) both contracted separately with Leidos (SAIC) to perform design and surveying services for the water line construction.
The Lindsey Street Waterline Improvements project has two components. The first component (Section A) deals with the relocation of lines that are in direct conflict with the proposed Lindsey Street roadway construction. The second component (Section B) is a continuation of the Segment D Waterline (WB0184) that is a part of long-term effort to complete the City’s southern water distribution system loop; this portion of that project includes approximately 5,950 LF of 24-inch water line. The cost of Section A is to be paid by the City of Norman while the cost of Section B is to be paid by the NUA.
The advertisement for bids was published in the Norman Transcript and bids were received from four contractors on February 26, 2015. McKee Utility Contractors, Inc. (McKee) was the low bidder at $3,074,165.00 for both Sections A and B; the NUA portion of the bid (Section B) was $2,130,885.00. On March 10, 2015, the NUA approved award of Bid 1415-45 to McKee for Section B and authorized the Chairman to sign Contract K-1415-103 in the amount of $2,130,885 with McKee. The contract time began March 21, 2015 and was scheduled to be complete within 180 calendar days or by September 17, 2015.
DISCUSSION: During the project construction, three change proposals resulting in a cost increase of $46,789 were approved administratively by staff. Additionally, the final reconciliation of “as-bid” to “as-built” quantities resulted in a cost increase of $99,226.90. Thus, Final Change Order No. 1 includes a net increase of $146,015.90 for a final contract amount of $2,276,900.90. The specifics of each change proposal are described below:
Change Proposal No. 1: In order to minimize the duration of closures affecting Lindsey Street, staff requested and McKee agreed to repair five (5) open trench crossings overnight with fast track concrete allowing Lindsey Street to be opened to traffic the following morning. As shown in Attachment 2 to the change order, the negotiated price for use of fast track concrete is $8,789.
Change Proposal No. 2: In order to reduce damages to extensive landscaping and trees at 1300 West Berry; staff requested and McKee agreed to directionally drill approximately 150 feet of 24-inch piping in lieu of open trench construction. As shown in Attachment 2 to the change order, the negotiated price to mobilize a boring machine and perform the work was $30,000.
Change Proposal No. 3: This change was necessitated due to discovery of two abandoned, empty, underground storage tanks (UST) in McAlister’s parking lot just east of Wylie Road. The western most UST was damaged by excavating equipment and was repaired the next day under the supervision of the Oklahoma Corporation Commission (OCC). As shown in Attachment 2, a total cost increase of $8,000 was negotiated. The tank repair was $500 but McKee’s equipment and manpower were idled for more than one working day; McKee is requesting reimbursement of $7,500 for lost production for one day.
Reconcile “as-bid” quantities to “as-built” quantities. Quantity adjustments resulting in a cost increase of $99,226.90 are included; the most significant changes were as follows:
1. Bid item 1: The overall length of 24-inch open trench piping increased from 5,500 feet to 5,650 feet for a cost increase of about $25,575; this was due to a decreased length of 24-inch piping in steel casing (see item 3 below) and extending the waterline from the west side of Berry to the east side of Berry for better coordination between two contractors.
2. Bid items 7, 8, 9, 10 and 11: Due in part to our inability to obtain temporary construction easements for several bore pits, the overall length of boring with steel casing was reduced from 990 feet to 217 feet; resulting in a net savings of $307,025.
3. Bid item 6: The length of 24-inch open trench piping with steel casing decreased from 300 feet to 107 feet for a savings of $77,200. Approximately 80 feet of steel casing was eliminated in the vicinity of McGee Avenue and 180 feet was eliminated at Berry Road by relocating the 24-inch waterline into the southernmost lane of Lindsey Street. However, due to discovery of an underground storage tank (UST) just east of Wylie Road, 67 additional feet was required there.
4. Bid items 9A and 11A for 12-inch and 6-inch open trench piping with steel casing were created unit prices were taken from the Section A bid. 70 feet of 12-inch PVC and 280 feet of 6-inch PVC were needed to install multiple crossings of Lindsey Street for a net increase of $73,500.
5. The overall number of fittings increased resulting in a cost increase of $49,875; the majority of these were 24-inch 45-degree fittings (bid item 34) utilized to avoid existing concrete vaults, buildings, drainage piping or other pipelines in the immediate vicinity of the 24-inch waterline.
6. Bid items 45, 46, 47, 48, 49 and 58 relate to driveway, street and sidewalk repairs; these items increased by $353,942. This is mainly due to five open trench crossings of Lindsey Street, moving the waterline into the roadway to avoid existing structures or piping at McGee Avenue and at Berry Road, as well as an initial underestimation of sidewalks that would need replacement. Bid item 48, remove and replace sidewalk overran by almost $112,000.
The net effect of the change order is an increase of $146,015.90 or slightly less than 6.9% of the original contract amount. New work totaling $46,789 is approximately 2.2% of the contract amount, far below the 10% maximum allowed under the state competitive bidding act.
Upon approval of Change Order No. 1, the contract amount will be increased from $2,130,885 to $2,276,900.90 while contract completion date will remain at September 17, 2015. Cleanup work has been on-going since substantial completion on September 3, 2015 when all waterlines were placed into service. Final cleanup is now complete and the project is acceptable to the Department of Utilities.
The Water Fund (031) will cover the increased cost of Section B of the Lindsey Street Waterline Improvement. The Fiscal Year Ending (FYE) 2016 budget includes unencumbered funds of $236,756 in 24-inch Waterline Segment D Construction (account 031-9360-462.61-01; project WB0184). These funds are adequate to fully fund the change order amount of $146,015.90.
RECOMMENDATION 1: Staff recommends the NUA approve Final Change Order No. 1 with McKee Utility Contractors, Inc. increasing the contract amount by $146,015.90 for a final contract amount of $2,276,900.90.
RECOMMENDATION 2: Staff also recommends that the NUA accept the Lindsey Waterline Improvements, Section B, 24-inch Waterline Extension and authorize final payment in the amount of $166,016 to the contractor.