Manatee County Government Administrative Center First Floor, Commission Chambers 9:00 a.m. - February 13, 2018
REVISED February 13, 2018 - Regular Meeting
Agenda Item #27

Change Order No. 1 to Agreement 17-0071OV: Force Main 1D Replacement


Contact and/or Presenter Information
Contact: Chris Daley, Financial Management Department, Procurement Division, Ext. 3048

Presenters: Anthony Russo, Project Engineer II, Ext. 3055, and Jeff Streitmatter, Public Works Department, Project Management Division, Ext 7335

Action Requested
Authorize the County Administrator or his designee to execute Change Order 1 to Agreement 17-0071OV: Force Main 1D Replacement with Metro Equipment Services, Inc., Miami, FL providing for use of contingency funds to pay for material increases with no additional cost to the Agreement.

Enabling/Regulating Authority
Manatee County Code of Laws

Background Discussion

At its meeting on July 25, 2017, the Board of County Commissioners executed an Agreement with Metro Services, Inc., in the amount of $4,295,170.00 based on a completion time of 365 calendar days for the Force Main 1D Replacement project.

Change Order 1 provides for the use of $168,171.12 from the contract contingency funds to compensate the contractor for increased material costs due to the impacts in the HDPE and PVC material supply chain caused by Hurricane Harvey, which occurred shortly after this contract was awarded prior to commencement of work.

A summary of events that led up to this Change Order 1 are as follows:

  1. The County issued a Notice to Proceed on August 7, 2017, with a project start date of on or before November 15, 2017. In the weeks before Hurricane Harvey struck the gulf coast of Texas on August 25, 2017, Metro Services and the County were in the process of the shop drawing submittal and approval process for the HDPE pipe required for this project
  2. While Metro Services was revising their HDPE shop drawings for resubmittal to the County, they received a letter from their HDPE pipe supplier declaring Force Majeure due to the impacts of Hurricane Harvey on the supply chain for PVC and HDPE pipe and fittings.
  3. In October 2017, the County issued a revised Notice to Proceed with a new commencement date of January 15, 2018, to account for the delays in materials and allow time for market stabilization of pricing related to Hurricane Harvey.
  4. In December 2017, Metro Services notified the County that the market had not adjusted to pre-hurricane pricing and they submitted a claim in the amount of $234,516.73 to the County for the additional material costs for the HDPE and PVC pipe materials for this project and requested an additional 90 days.
  5. In January 2018, staff met with Metro Services to negotiate the claims settlement.  Prior to this meeting staff performed a market research by contacting other material suppliers to confirm pricing impacts to the HDPE pipe supply chain. The claim submitted by Metro Services also included price increases for the PVC pipe; however, the market research conducted by staff did not validate this claim.
  6. The negotiated settlement of $168,171.12 is for the HDPE material price increase only. A revised Notice to Proceed has been issued with a new start date of March 12, 2018. The negotiated amount and revised start date have been agreed to by Metro Services, Inc.

County Attorney Review
Not Reviewed (No apparent legal issues)

Explanation of Other

Reviewing Attorney

Instructions to Board Records
Original to Board Records

Email copy to:
Metro Service, Inc., Attn: Daniel Gonzalez, at dg@mesinc.us
Public Works Department, Attn: Anthony Russo at Anthony.russo@mymanatee.org
Public Works Department, Attn: Kathleen Casey, at Kathleen.casey@mymanatee.org
Public Works Department, Attn: Debbie Marchbank, at Debbie.Marchbank@mymanatee.org
Finance AP Clerk III, Attn: Towanda Brinson, at Towanda.Brinson@manateeclerk.com
FMD Procurement, Attn: Chris Daley at chris.daley@mymanatee.org

Cost and Funds Source Account Number and Name
Funding Source 2015 Utility Rev Ref & Imp Bonds - 4166035781-534000-6035781-0004

Amount and Frequency of Recurring Costs

Attachment:  Departmental Memo -CO 1 to Agreement 17-0071OV.pdf
Attachment:  CO #1 to Agreement 17-0071OV- Metro Services.pdf