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CHANGE ORDER NO. ONE TO CONTRACT K-1617-91: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND RDNJ, INC. D/B/A A-TECH PAVING, INCREASING THE CONTRACT AMOUNT BY 377,600.15 FOR A REVISED CONTRACT AMOUNT OF $561,869.15 FOR THE 2016 BOND ROAD RECONSTRUCTION; IOWA STREET, PHASE IC.
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BACKGROUND: In the Norman General Obligation Bond Election of March 2, 2010, voters approved a 5-year, 4-phase program of Street Maintenance on neighborhood streets. The four phases include (1) Urban Asphalt Streets, (2) Urban Concrete Streets, (3) Rural Roads and (4) Road Reconstruction. The final two projects in the “Road Reconstruction” category on Iowa and Dakota Streets required outside engineering design services, due to the complexity of the stormwater improvements. Those two projects involved eleven (11) residential blocks of total road reconstruction on Dakota Street and Iowa Street in core Norman.
On March 31, 2016, a bid opening was held for these projects and only one bid was received. The Engineer’s Estimate was $3,053,824. A-Tech Paving submitted the sole bid of $3,201,241, which was $147,417 over the estimate. City staff determined that other contractors did not bid on this project because the schedule was too aggressive. Since the only bid that was submitted was over the Engineer’s Estimate, City staff recommended the bid be rejected and the project be rebid. City Staff also recommended splitting the project into three separate phases to make the schedule less aggressive. The proposed project splits are as follows:
• Phase I - Iowa Street- Berry Road to Pickard Avenue
• Phase II - Dakota Street- Berry Road to Flood Avenue
• Phase III - Dakota and Iowa Streets- Flood Avenue to University Boulevard (see attached map for locations)
Some other strategies to control the costs on the projects included using City forces to perform some of the work. To accommodate that approach the phases were split into three parts, as listed below:
• Part A: Upgrade water system-performed by Norman Utility Authority (NUA; City Utilities Department)
• Part B: Asphalt pavement and stormwater system - performed by City Public Works Dept.
• Part C: Concrete pavement, curb and gutter and driveways - performed by private contractor
This approach provided significant cost savings and scheduling enhancements.
The bid opening for Phase IC was conducted on February 23, 2017 and four (4) contractors submitted bids for concrete pavement, curb and gutter and driveways. A low bid in the amount of $184,269 was submitted by RDNJ, LLC. d/b/a A-Tech Paving of Edmond, OK. The bid was less than the engineer’s estimate of $279,288 by $95,019 (34% percent). On March 9, 2017, City Council approved contract K-1617-91 for Phase I- Iowa Street- Berry Road to Pickard Avenue.
DISCUSSION: Phase I of the project is nearing completion. The two (2) remaining phases of this project are:
• Phase II- Dakota Street- Berry Road to Flood Avenue
• Phase III - Dakota and Iowa Streets- Flood Avenue to University Boulevard
To complete the last two phases of the project, NUA has begun the waterline work (Part A) and Public Works crews will continue with storm water pipeline and the subgrade preparation (Part B). As mentioned above, the curb and gutter and the driveways (Part C) will be completed by a private contractor.
After review of the remaining phases of the project, staff determined that increasing the contract amount with RDNJ, LLC. dba A-Tech Paving with this change order would be the best alternative to completing this project quickly and within the allowable budget. This change order is based on the unit prices bid for Phase I, which were lower than the Engineer’s Estimate. This bid was competitive and the contractor is performing all work in a manner that is acceptable. In addition, this change order reduces the project completion time by eliminating the time required for the bidding process including advertisement, bid submittal and award of contract by City Council.
With this change order RDNJ, LLC. dba A-Tech Paving’s scope of work will be extended to include the curb, gutter and driveway construction portion of Phases II, and III. The engineer’s estimate for Part C of Phases II and III is $493,346. The change order amount is $377,600.15, which is $115,745.85 (23%) less than the Engineer’s Estimate. If approved, the revised contract amount for the total project will be $561,869.15, increasing the original contract amount from $184,269.
Weather permitting, the anticipated schedule to complete these projects is as follows:
• Phase II - Dakota Street - Berry Road to Flood Avenue by the end on November 2017
• Phase III - Dakota and Iowa Streets - Flood Avenue to University Boulevard by the end of December 2017
This project will complete the entire 2010 Street Maintenance Bond Program as approved by Norman voters.
RECOMMENDATION: Staff recommends approval of Change Order No. 1 increasing Contract K-1617-91, between the City of Norman and RDNJ, LLC. dba A-Tech by $377,600.15. The funds for this change order are available in the 2010 Street Maintenance Bond Program, Construction (account 050-9385-431.61-01; projects BP0239 and BP0245).