ITEM TITLE:
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Consider and take action approving Change Order 1 reducing the contract by $706,852.11, accepting project in the final contract amount of $1,733,921.17 and placing the Maintenance Bond into effect the for Industrial Water Main Extension Phase I PU2306 as constructed by M&T Septic and Backhoe Service, INC.
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INITIATOR: Rusty Whisenhunt, Director of Public Utilities
STAFF INFORMATION SOURCE: Rusty Whisenhunt, Director of Public Utilities
BACKGROUND: The City Council entered into a redevelopment agreement on February 23, 2023, later modified by City Council to support the development of the site as refinery of Cobalt and other elements for Westwin Elements, INC. As part of the agreement, the City of Lawton is required to bring utilities to the project site to support the industry. The contract with Garver LLC is to do the design for phase 1 of the water line construction (approximately 7500 feet). Phase 1 is the construction of a water main (20”) from Lee Blvd south along 97th Street then west along Bishop Road ¾ mile to the southeast corner of the proposed industrial pilot plant construction site. City Council entered a contract with Garver LLC for engineering and design services on May 9th, 2023 for design of phase 1. Council approved plans and specification and authorized advertising on November 7th, 2023. The City of Lawton pre-purchased the 20” PVC pipe, large diameter fittings and 20” valve to expedite construction. Construction is required to be complete for the Plant start up March 1, 2024. A mandatory pre-bid meeting occurred November 9, 2023, at 1:30 pm in the City of Lawton Public Utilities Conference Room and five contractors attended. Bids were received on November 21, 2023, at the City Clerk’s office and publicly opened. A total of one (1) bid was received on this project. After reviewing the bid documents, it was recommended to award the project to M&T Septic & Backhoe Service, INC, of Blanchard, OK, who submitted the lowest responsive and responsible bid for the project. Due to the overage of the bid and the time constraint to meet the start date for the industry, it was requested that value engineering be implemented to reduce the cost while still meeting the completion date required. City Council awarded this project on December 5th, 2023.
M&T Septic and Backhoe Service, INC. completed the project on schedule. A change order has been agreed upon to reduce the total amount of the contract. This change order reduces the contract by a total of $706,851.11, comprised of unused allowances in the amount of $150,000.00 and unused quantities of $556,851.11. This takes the original contract amount of $2,440,772.28 down to $1,733,921.17.
The quick production of this project meets the concept of open for Business and the Pursuit of Excellence as Public Utilities and the City of Lawton strives to meet the goals of the True North Culture.
EXHIBIT: Change Order 1, Engineers approval letter
KEY ISSUES: Does City Council wish to approve Change Order 1 contract reduction of $706,851.11, place the Maintenance Bond into effect, and accept the project as constructed for the Industrial Water Main Extension Phase I PU2306 by M&T Septic and Backhoe Service, INC, for a final contact amount of $1,733,921.17?
FUNDING SOURCE: City of Lawton ARPA Grant Funds already encumbered into ARPA-CRF-CONSTRUCTI Account.
STAFF RECOMMENDED COUNCIL ACTION: Approve Change Order 1 contract reduction of $706,851.11, place the Maintenance Bond into effect, and accept the project as constructed for the Industrial Water Main Extension Phase I PU2306 by M&T Septic and Backhoe Service, INC, for a final contact amount of $1,733,921.17.