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CHANGE ORDER NO. ONE FOR CONTRACT K-1415-101: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND MCKEE UTILITY CONTRACTORS, INC., DECREASING THE CONTRACT AMOUNT BY $129,367 FOR A REVISED CONTRACT AMOUNT OF $813,813 AND ADDING EIGHT (8) CALENDAR DAYS TO THE CONTRACT FOR THE LINDSEY STREET WATER LINE IMPROVEMENTS PROJECT, SECTION A, 8-INCH AND 12-INCH WATER LINE RELOCATIONS 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 General Obligation 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 Water Line 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 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 $3,074,065 for both Sections A and B; the City of Norman portion of the bid was $943,180. The NUA portion of the bid (Section B) was $2,130,885. On March 10, 2015, City Council approved award of Bid 1415-45 to McKee for Sections A and B, and authorized the Mayor/NUA Chair to sign Contract K-1415-103 in the amount of $943,180 with McKee. The contract time began March 21, 2015 and was scheduled to be complete by June 4, 2015.
DISCUSSION: Construction projects are awarded to the lowest responsible bidder. Contractor bids are determined using estimated plan quantities multiplied by the contractor’s unit prices for all bid items of the contract. The total of all of these costs represents the contractor’s bid. During construction, each quantity was measured in the field and the contractor is to be reimbursed based on the actual quantity. This final Change Order No. 1 adjusts the contract based on the previously estimated quantity costs to the actual measured quantity costs. In all, 30 bid item quantities changed with 14 item quantities increasing for a total increase of $197,415 and 16 items that decreased for a total decrease of $326,782. The net contract change is a decrease of $129,367 or 13.7%. The original contract amount was $943,180 with a final contract value of $813,813.
The majority of the savings was brought about by two items. First, Staff made a design change deducting the 12-inch water line from the project and feeding the Circle K and the Del Rancho business locations with an eight inch line fed from the new 24-inch water line located along Lindsey Drive (see attached Lindsey Street Water Line Replacement Project drawing). Second, due to utility conflicts with AT&T’s duct bank on the south side of Lindsey Street, the contractor was not able to perform the horizontal bores shown in the plans. Instead, the contractor was directed to excavate Lindsey Street to install the eight inch water lines across the street (boring under the street is more expensive than open excavation of the street).
Most of the additional cost was due to having to install additional pavement above plan quantity due to the following issues. First, due to the poor condition of the pavement the consultant underestimated the amount of pavement that needed to be replaced for the eight inch water line construction on the north side of Lindsey Street. Second, additional pavement was used in the locations the contractor excavated on Lindsey Street to install the eight inch water lines instead of boring underneath the roadway.
Due to time constraints associated with the Lindsey Street Improvements, a completion date of June 4, 2015 was implemented for substantial completion of Section A. Due to the wet spring the contractor was not able to complete the project until June 12. As allowed in the City of Norman Standard Specifications and Construction Drawings Section 1107.8 contract time may be extended for unusual adverse weather conditions above normal for the contract period. Staff is recommending adding an additional eight days to the contract for weather days.
RECOMMENDATION NO. 1: Staff recommends approval of Final Change Order No. 1 with McKee Utility Contractors, Inc., decreasing the contract amount by $129,367 for a final contract value of $813,813.
RECOMMENDATION NO. 2: Staff further recommends acceptance of the Lindsey Street Water Line Improvements Section A: 8-Inch and 12-Inch Water Line Relocations Project and authorize final payment in the amount of $178,035.47 (project BP0189).