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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 12/17/2013 - RESOLUTION 2013-106 APPROVING CHANGE ORDERS TO THEAgenda Item 19 Item # 19 Page 1 AGENDA ITEM SUMMARY December 17, 2013 City Council STAFF Brian Hergott, Facilities Project Manager Gerry Paul, Director of Purchasing & Risk Management Ken Mannon, Operations Services Director SUBJECT Resolution 2013-106 Approving Change Orders to the Contract For the Senior Center with the Neenan Company as an Exception to the Competitive Purchase Process and to Incorporate the Additional Funds Appropriated to the Project. EXECUTIVE SUMMARY The purpose for this item is to sole source the additional scope of work to be added as part of the Senior Center Expansion project. The initial contract price for the “design-build” contract awarded to The Neenan Company for the Senior Center Expansion project was $4,383,702. Since the contract award, it has become necessary to incorporate additional work into the contract. The Purchasing Agent has determined it would be more efficient and cost-effective to award the additional work to the Neenan Company through change orders to the existing contract, the total of which exceeds $200,000. Pursuant to Section 8-161(c)(1) of the City Code, if the total cost for change orders to an existing contract exceeds fifteen percent (15%) of the contract price-- $657,555, in this instance -- the Purchasing Agent must use the competitive purchasing process to award the additional work. Section 8-161 (d)(3) of the City Code allows an exception to the competitive purchasing process upon specific findings by the Purchasing Agent, submission of a request to the City Manager, and approval by City Council for any procurement which exceed Two Hundred Thousand Dollars ($200,000.00). City Council previously appropriated additional funds for the Senior Center project in Ordinance No. 145, 2013 on November 5, 2013. This Resolution seeks City Council’s approval of an exception to the competitive purchasing process in this instance in order to incorporate change orders into the Senior Center project, and to apply appropriated funds to the cost of those change orders. STAFF RECOMMENDATION Staff recommends adoption of this Resolution. BACKGROUND / DISCUSSION The "design-build" contract for the Senior Center Expansion project was competitively bid and awarded to the most qualified responsive and responsible firm: the Neenan Company. The City Project Team has since determined the scope of work under the contract with Neenan should be expanded to include certain additional work through change orders. The City Code generally requires rebidding of additional work through the City's competitive purchasing process when the value of change orders exceeds 15% of the contract price. The Purchasing Agent has determined that competitively bidding the additional work in this instance Agenda Item 19 Item # 19 Page 2 would negatively impact the project schedule. In addition it is not efficient or effective to have two (2) prime contractors working on the same project. Section 8-161(d)(1) b. of the Municipal Code authorizes the Purchasing Agent to purchase additional professional services and services as an exception to the competitive purchasing process, where the Purchasing Agent determines although there exists more than one (1) responsible source, a competitive process cannot reasonably be used or, if used, will result in a substantially higher cost to the City, will otherwise injure the City’s financial interests or will substantially impede the City’s administrative functions or the delivery of services to the public. The Purchasing Agent has determined that competitively bidding the additional work on the Senior Center Expansion Project would result in a substantially higher cost to the City and injure the City’s financial interests by impacting the project’s timely completion. Based on these findings, the Purchasing Agent has submitted to the City Manager for review and City Council approval a request for an exception to the competitive purchasing requirement in this instance. City Council previously appropriated additional funds for the Senior Center Expansion Project, sufficient to cover the additional cost of the subject change orders. FINANCIAL / ECONOMIC IMPACT The Purchasing Agent has determined that competitively bidding the additional work on the Senior Center Expansion Project would result in a substantially higher cost to the City and injure the City’s financial interests by impacting the project’s timely completion. ENVIRONMENTAL IMPACTS The changes being incorporated into the project are to have a positive impact on the environment. - 1 - RESOLUTION 2013-106 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING CHANGE ORDERS TO THE CONTRACT FOR THE SENIOR CENTER WITH THE NEENAN COMPANY AS AN EXCEPTION TO THE COMPETITIVE PURCHASE PROCESS AND TO INCORPORATE THE ADDITIONAL FUNDS APPROPRIATED TO THE PROJECT WHEREAS, the City awarded the contract for the Senior Center Expansion Project to the Neenan Company, as the most qualified responsive and responsible bidder, pursuant to the City’s competitive purchasing requirements; and WHEREAS, the City now needs to incorporate additional work items into the Senior Center Expansion Project; and WHEREAS, sufficient funds for the additional work were appropriated by the City Council in Ordinance No. 145, 2013; and WHEREAS, the City Code generally requires all construction contracts to be competitively bid, except under specific circumstances; and WHEREAS, City Code Section 8-161(d)(1)b. authorizes the Purchasing Agent to directly purchase additional professional services and services as an exception to the competitive purchasing process where the Purchasing Agent determines that, although there exists more than one responsible source, a competitive process cannot reasonably be used or, if used, will result in a substantially higher cost to the City, will otherwise injure the City’s financial interests or will substantially impede the City’s administrative functions or the delivery of services to the public; and WHEREAS, the Purchasing Agent has determined that competitively bidding the additional work for the Senior Center Expansion Project would result in a substantially higher cost to the City and injure the City’s financial interests by extending the project completion timeline; and WHEREAS, the Purchasing Agent has submitted the proposed justification for this determination to the City Manager for approval; and WHEREAS, the City Manager has reviewed and approved the justification for this acquisition of additional services; and WHEREAS, City Code Section 8-161 (d)(3) requires prior approval of this purchasing method by the City Council for all procurements which exceed Two Hundred Thousand Dollars ($200,000.00). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT COLLINS that as an exception to the competitive purchasing requirements, the Purchasing Agent is hereby authorized to execute change orders to the contract with the Neenan - 2 - Company for additional work on the Senior Center Expansion project, up to the amount appropriated for the project by Ordinance No. 145, 2013. Passed and adopted at a regular meeting of the Council of the City of Fort Collins, held this 17th day of December, A.D. 2013. _________________________________ Mayor ATTEST: City Clerk