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TO: Mayor Richard C. Irvin
FROM: Ian Wade, Capital Projects Manager
DATE: January 22, 2024
SUBJECT:
A resolution authorizing the Director of Purchasing to increase the Purchase Order for RC Wegman Construction Company, 750 Morton Avenue, Aurora, IL, 60506 by the amount of $3,617,578.00 for seven individually bid construction trade packages as well as seven allowances as part of the Public Works Combined Maintenance Facility Project.
PURPOSE:
To obtain approval for an increase to a Purchase Order for RC Wegman Construction in the amount of $3,617,578.00
BACKGROUND:
On September 27, 2022, City staff utilized a Qualifications-Based Selection to award RC Wegman Construction Company a contract to provide Construction Manager "as Constructor" (CMc) services for the new Public Works Combined Maintenance Facility via R22-276.
Following the completion of the Structural and Architectural design of the main building, RC Wegman published the first and second bid packages (BP1 and BP2, respectively). BP1 included structural steel and precast concrete totaling $8,274,777 and was awarded on December 13, 2022 via R22-366. BP2 included fourteen (14) other trade packages totaling $17,714,867 and was awarded on April 11, 2023 via R23-102.
The third bid package (BP3), which is the subject of this Resolution, included the seven remaining individual trade packages for the building including Architectural Millwork, Gypsum Board Systems, ACT, General Flooring and Tile, Specialty Flooring, Cranes, and General Trades. BP3 also includes seven allowances for work required by already contracted subcontractors that was not yet identified at the time of the BP1 and BP2 awards, including the build out of the 2nd floor (new home of the City's Engineering Division), installing trench drains in the fleet and repair areas, additional hose valves for fire suppression, revised vehicle exhaust connections, adding small windows in west facing overhead doors, electrical infrastructure for the future fueling station, and a group of miscellaneous additional items resulting from final changes to the building design (see Exhibit B of the attached Amendment No. 1.3 for details).
DISCUSSION:
Requests for bid on each of the seven trade packages included in BP3 were published by RC Wegman and a total of 21 eligible bids were received on December 13, 2023 (see attached bid tabulation). The City's Local Bidder Ordinance applied to these bid packages but was not a factor in any of the selections.
As summarized in the attached updated cost estimate (known as Guaranteed Maximum Price or GMP), the overall project cost, which includes the three primary bid packages procured by RC Wegman, Wegman's reimbursable expenses and CM fees, and other "soft costs" (everything not involving RC Wegman such as design fees, site work, etc.) should be almost $2.5M less than the low end of the estimated cost range of $50M to $56M. Note that this total does not include work performed prior to RC Wegman's initial involvement in 2022.
This Purchase Order increase ($3,617,578) includes the subtotal for the seven trade packages ($2,405,687), the seven allowances for work required by already contracted subcontractors ($1,039,625), and a 5% construction contingency ($172,266). Detailed summaries showing voluntary alternates accepted by the various trades, the included budgetary allowances, and the final Schedule of Values for BP3 are included as Exhibits to the attached contract "Amendment No. 1.3". It should be noted that the costs included for three of the allowances (revised vehicle exhaust connections, adding small windows in west facing overhead doors, and electrical infrastructure for the future fueling station) are estimates, as the final scope and cost of these items are still pending.
It should also be noted that this Purchase Order increase does not include Wegman's Construction Management fees for these items, which will be invoiced separately to the City and paid using the previously approved purchase order for Construction Management services.
Funding will be provided from accounts 510-4063-511.72-01, 354-4411-417.72-01, and 356-441-417.72-01, which have respective 2024 budgets of $7,785,000, $925,000, and $25,000,000 (C114).
IMPACT STATEMENT:
The new facility will improve the working conditions and performance of the various City maintenance divisions to be relocated there. It will also streamline city vehicle fueling (including police), salting, and mulch operations, all of which will improve resident safety and convenience. Further, a central fleet and equipment housing facility such as this will result in saved time (and thereby cost) inherent to traveling back and forth between multiple facilities throughout the City.
RECOMMENDATIONS:
I request the proposed resolution be adopted.
cc: Infrastructure & Technology Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing the Director of Purchasing to increase the Purchase Order for RC Wegman Construction Company, 750 Morton Avenue, Aurora, IL, 60506 by the amount of $3,617,578.00 for seven individually bid construction trade packages as well as seven allowances as part of the Public Works Combined Maintenance Facility Project.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, RC Wegman Construction Company, 750 Morton Avenue, Aurora, IL, 60506 was selected to provide Construction Management as Constructor (CMc) services for the City's Public Works Combined Maintenance Facility Project; and
WHEREAS, Wegman published requests for bid and received 21 eligible bids for seven individual construction trade packages; and
WHEREAS, the lowest qualified bidders were determined for each trade package as shown on the attached Bid Tabulation in the combined final subtotal amount of $2,405,687; and
WHEREAS, the total value of this award ($3,617,578) includes the subtotal of the seven low bids received plus seven allowances and a 5% contingency; and
WHEREAS, funds will be provided from accounts 510-4063-511.72-01, 354-4411-417.72-01, and 356-441-417.72-01, which have respective 2024 budgets of $7,785,000, $925,000, and $25,000,000, (C114) respectively.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: the Director of Purchasing is authorized to increase the Purchase Order for RC Wegman Construction Company, 750 Morton Avenue, Aurora, IL, 60506 by the amount of $3,617,578.00 for seven individually bid construction trade packages as well as seven allowances as part of the Public Works Combined Maintenance Facility Project.