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CHANGE ORDER NO. TWO TO CONTRACT K-1617-91: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND RDNJ, L.L.C., D/B/A A-TECH PAVING, DECREASING THE CONTRACT AMOUNT BY $41,435.67 FOR A REVISED CONTRACT AMOUNT OF $561,869.15 FOR THE 2010 BOND ROAD RECONSTRUCTION; IOWA STREET, PHASE IC AND FINAL ACCEPTANCE OF THE PROJECT.
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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 2010 Street Maintenance Bond Program includes four categories as follows:
• Urban Asphalt Street Maintenance
• Urban Concrete Street Maintenance
• Rural Road Maintenance
• Urban Street Reconstruction
The final two projects in the “Urban Street Reconstruction” category required outside engineering design services due to the complexity of the stormwater drainage improvements. Those two projects involved eleven (11) residential blocks of total street reconstruction on Dakota and Iowa Streets. The proposed projects were split into phases 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
Each project was further divided into three (3) parts as follows:
Part A: Service utilities - performed by City of Norman Utilities Department;
Part B: Asphalt pavement & stormwater system - performed by City of Norman Public Works Department
Part C: Concrete pavement, curb and gutter and driveways - performed by Contractor
It was anticipated that this approach would provide significant cost savings and expedite the project.
DISCUSSION: 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 or 4.83% over the estimate. City staff recommended the bid be rejected and the project rebid.
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 $95,019.00 or 34%.
On March 28, 2017 City Council approved Contract K-1617-91 with RDNJ, LLC. d/b/a A-Tech for Phase IC - Iowa Street: Berry Road to Pickard Avenue.
This improvement program involved the complete removal and replacement of the neighborhood concrete pavement, curb and gutter and driveways. The project location was funded in the Capital Fund, Bond Road Reconstruction, Construction (account 050-9385-431.61-01; project BP0239).
In an effort to expedite the construction of the remaining two phases of this project which were:
Phase II C- Dakota Street- Berry Road to Flood Avenue, Curb, Gutter and Driveways
Phase III C- Dakota and Iowa Streets- Flood Avenue to University Boulevard, Curb, Gutter and Driveways,
It was decided to amend the contract with RDNJ, LLC. d/b/a A-Tech Paving of Edmond with Change Order No. 1. This change order was based on the prices bid for Phase I which were lower than engineer’s estimate. This approach, in addition to the savings, reduced the time by eliminating the time required for advertising and the bid process.
The schedules to complete these projects were as follows:
Phase II- Dakota Street- Berry Road to Flood Avenue by March of 2018;
Phase III- Dakota and Iowa Streets- Flood Avenue to University Boulevard by January 2018
On August 8, 2017 City Council approved Change Order No.1 to Contract K-1617-91 with RDNJ, LLC. dba A Tech Paving in the amount of $377,600.15, revising the contract to a new amount of $561,869.15
On September 28, 2018 RDNJ LLC d/b/a A Tech Paving, completed all of the work under Contract K-1617-91, including Change Order No. 1. A final pay application of $26,021.67 was submitted by the contractor on September 30, 2018. The total work completed amounted to $520,433.48 leaving a balance of $41,435.67.
RECOMMENDATION 1: Staff recommends Change Order No. Two (final) decreasing the contract by $41,435.67 be approved. If approved, the total contract amount with RDNJ, LLC. d/b/a A-Tech Paving will decrease to $520,433.48 from $561,869.15, a decrease of 7.4%. It is further recommended that the project be accepted and final payment in the amount of $26,021.67 be approved. With the payment of the final pay request the project is closed out.