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CHANGE ORDER NO. THREE TO CONTRACT K-1819-125: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND CENTRAL CONTRACTING SERVICES, INC., INCREASING THE CONTRACT AMOUNT BY $60,354.77 FOR A REVISED CONTRACT AMOUNT OF $3,119,645.77 AND ADDING 48 CALENDAR DAYS TO THE CONTRACT FOR THE ROBINSON WATER LINE REPLACEMENT PROJECT, PHASE II, AND FINAL ACCEPTANCE OF THE PROJECT.
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BACKGROUND: The Robinson Waterline Replacement project will ultimately replace over 6 miles of 16, 24 and 30-inch deteriorated and undersized waterlines between the Brookhaven Elevated Water Storage Tank and the Water Treatment Plant (WTP). This waterline (WL) has had numerous leaks resulting in significant loss of water and damage to the overlying or adjacent roadway. Repairs to this large diameter WL 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.
The Robinson WL Under I-35 (Project WA0195) was created to replace and enlarge approximately 8,000 feet of the existing WL along Robinson between 24th Avenue NW and the Robinson Water Tower; the estimated cost to complete this project was $7.1 million (MM) continuing through the end of 2020. The Robinson WL Replacement Phase I project included approximately 3,400 feet of 30-inch and 3,400 feet of 12-inch WL and was complete March 24, 2017 at a cost of $3,364,057.
The Robinson WL Replacement Phase II project included approximately 3,900 feet of 30-inch, 130 feet of 24-inch, 120 feet of 16-inch and 600 feet of 12-inch WL and reconstruction of about 2,900 feet of paving in the southern-most eastbound lane of Robinson. The NUA approved Contract K-1819-125 with Central Contracting Services, Inc. (Central) of Norman on March 26, 2019 for $2,845,591.
On February 11, 2020, the NUA approved Change Order No. 1 (CO#1) authorizing Central to install approximately 520 feet of new WL located NW of State Highway 9 and Classen Boulevard adjacent to a new On-Cue Convenience Store; this work is a part of the Classen-Flood Waterline (WA0338). CO#1 increased the contract amount by $193,930 for a revised contract amount of $3,038,721 and extended the contract time by ninety calendar days.
On January 8, 2020, NUA staff authorized implementation of CO# 2 via a field order to keep the WL installation moving west beyond 36th Avenue NW. CO#2 authorized Central to remove and dispose of existing 12-inch ductile iron pipe (DIP) WL blocking installation of the 30-inch WL between Stations 28+20 and 36+50. It also authorized Central to move three water services from the existing 12-inch WL and temporarily connect to an adjacent 24-inch WL, and repairs to curb and gutter, sidewalks and driveway as required after connection of the relocated waterline services. This action allowed the proposed 30-inch WL to be installed as designed. On May 22, 2020, the City Manager approved CO#2 increasing the contract amount by $20,570 to $3,059,291 and increasing the contract time by thirty calendar days.
DISCUSSION: Proposed final Change Order No. 3 to the Phase II project will reconcile “as-bid” to “as-built” quantities and compensate Central for delay due to changed working conditions. As with any major unit price contract, the estimated quantities vary from those actually installed in the field. The changed cost is detailed on Attachment 1 to CO#3; significant changes are discussed further below:
Item 1, Reconcile Quantities for Robinson WL, Phase 2 (WA0195): The net increase associated with reconciling quantities was $15,483.77; changes with relatively significant financial impact were:
• Bid Item 6: 214 fewer feet of 30-inch pipe were installed saving $53,000;
• Bid Item 8: 3,043 additional tons of rock was installed in the pipe excavations due to the unstable materials under Robinson and 36th Avenue NW at an additional cost of $106,505;
• Bid Items 15 to 37: additional tees, reducers and bends of various pipe sizes were required, often to avoid underground obstructions, at an additional cost of $29,484;
• Bid Items 40 and 41: seven additional services were installed at an additional cost of $9,250;
• Bid Item 58: 211 additional square yards (SY) of concrete sidewalk was installed at an additional cost of $13,292;
• Bid Item 61: 656 fewer SY of asphalt paving was installed saving $65,600;
• Bid Items 63 and 64: additional Bermuda sodding was installed for erosion control at Brookhaven Creek in lieu of articulated block for a net savings of $36,102;
• Bid Item 65: an additional 99 SY of high early strength concrete paving associated with quickly re-opening 36th Avenue NW was installed increasing costs by $29,700; this was partially offset by a reduction of $5,290 for 53 SY of “standard” concrete paving.
Item 2, Contractor Delay for Robinson WL, Phase 2 (WA0195): After the bid opening, the City of Norman mandated revisions to the approved Traffic Control Plan between Brookhaven Creek and 36th Avenue NW. This change reduced the contractors working area on Robinson Street from two lanes to one lane that eliminated areas for equipment movement and material or rock storage. A thorough evaluation of construction progress indicates pipe installation was slowed to approximately 20 feet per day in this area as compared to installing between 70 and 100 feet per day in other areas where both lanes of Robinson were available. Contractor documentation of daily manpower and equipment costs justifies a negotiated settlement to increase the contract amount by $60,700 ($26,500 for manpower associated with ten additional working days and $34,200 for equipment costs associated with 18 additional calendar days), and increasing the contract time by eighteen (18) calendar days.
Item 3, Reconcile Quantities for On-Cue WL (WA0338): The net change associated with reconciling quantities was a reduction of $15,829. Two 45-degree 30-inch bends were not required saving $8,890, and slightly less piping was installed for a total savings of $6,939.
In summary, as shown in the proposed CO#3, the overall project cost will increase by $60,354.77 to $3,119,645.77 or approximately 9.6% over the original contract amount. The State Competitive Bidding Act allows processing of change orders up to 10% of the original contract amount; however, 7.5% of these increases utilize the original unit price bid items and are exempted from this maximum amount. The contract time will increase by a total of forty-eight (48) calendar days for a revised completion date of May 27, 2020.
The Fiscal Year Ending 2020 (FYE20) budget for Robinson Waterline Replacement (WA0195) Construction (31993360-46101) has an unencumbered balance of $240,861 to fund CO#3 to Contract K-1819-125. Note that change order approval will require an increase of $76,183.77 to existing purchase order #20003646 for the Robinson Waterline Replacement Phase II (WA0195); On-Cue purchase order #20005184 will ultimately be reduced by $15,829. The Robinson WL Replacement Phase II project was complete and placed into operation on April 17, 2020; the On-Cue WL project was complete on May 27, 2020.
RECOMMENDATION: It is recommended that the NUA approve Final Change Order No. 3 to Contract K-1819-125 with Central Contracting Services, Inc. increasing the contract amount by $60,354.77 for a revised contract amount of $3,119,645.77 and extending the contract time by forty-eight (48) calendar days. It is also recommended that the Robinson WL Replacement Phase II project be accepted and that final payment of $106,457.25 be made to the contractor.