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CHANGE ORDER NO. ONE TO CONTRACT K-1920-123: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND JORDAN CONTRACTORS, INC., INCREASING THE CONTRACT AMOUNT BY $92,329 FOR A REVISED CONTRACT AMOUNT OF $462,434 AND ADDING 30 CALENDAR DAYS TO THE CONTRACT FOR THE FYE 2017 SEWER MAINTENANCE PROJECT, PHASE 2.
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BACKGROUND: In 2001, the citizens of Norman approved a five dollar per month sewer maintenance fee to provide for the systematic replacement of aged and deteriorating neighborhood sewer lines. The FYE17 Sewer Maintenance Project (SMP17) study area is shown on the attached map. After extensive study by Norman Utilities Authority (NUA) staff of Sewer Line Maintenance Division and Utilities Engineering, the sanitary sewer lines within the study area were determined to require rehabilitation or replacement, repair, or no action due to the pipe and appurtenances being in good condition.
The SMP17 study area is generally bounded by Cavecreek Street to the north, Porter Avenue to the west, Rock Creek Road to the south, and 12th Avenue NE to the east. It will replace about 28,500 feet (about 5.7 miles) of old sewer lines and rehabilitate or replace 161 manholes. Generally, the selected contractor will install high-density polyethylene (HDPE) sewer pipe, primarily using the pipe-bursting technique. This technique allows long lengths of joint-less HDPE piping to be pulled into the old pipe at manholes as it is expanded with the bursting tool. House sewer service connections are then re-connected to the new pipe; approximately 455 private residences will be affected.
Bids were opened on March 12, 2020, and Horseshoe Construction, Inc., of La Porte, Texas was the lowest responsible bidder for the Base Bid at $2,796,161.25. On April 14, 2020, the NUA authorized award and approved Contract K-1920-73 with Horseshoe Construction, Inc., for $2,796,161.25. The 15-inch sewer replacement that was bid as an alternate was determined to be too high and was rebid as Phase 2. Bids for Phase 2 were opened on April 9, 2020, and Jordan Contractors, Inc., was the lowest responsible bidder at $370,105. On April 28, 2020, the NUA authorized award and approved Contract K-1920-123 with Jordan Contractors, Inc.
DISCUSSION: Proposed Change Order No. 1 will add pipe bursting of approximately 650 feet of 15-inch sewer to the north end of the project to replace all of the 15-inch line north to a newly installed interceptor and rehabilitate an additional 3 manholes on the line. This additional footage was determined to be necessary after further discussion after bidding the project and determination that the existing concrete line had deterioration. This will also reduce the impact to the residents and future costs by not requiring a future contractor to complete the work and disturb the area. NUA staff recommends approval of Change Order No. 1 with Jordan Contractors, Inc., totaling $92,329 for a revised contract amount of $462,434. This is a 24.9% increase to the contract amount; however, all of the increased cost utilizes existing unit prices and is therefore not subject to the 10% cap on change orders. The contract time will also be extended by 30 calendar days for a revised contract completion date of November 5, 2020.
The current year budget for the FYE17 Sewer Maintenance Project includes an unencumbered balance of $161,309.53 in Construction Account (32193338-46101; Project WW0307) and is adequate to fund CO# 1. Following the encumbrance of these funds, the remaining $68,980.53 should be sufficient to allow for future unforeseen conditions on the projects.
STAFF RECOMMENDATIONS: Staff recommends that the NUA approve Change Order No. 1 with Jordan Contractors, Inc., increasing the contract amount by $92,329 for a revised contract amount of $462,434 for the FYE17 Sewer Maintenance Project Phase 2 to complete sewer pipe bursting north to the new interceptor and replace the entirety of 15-inch concrete line and add 30 calendar days to the contract time to allow for completion of this work.