Title/Name/Summary
Elevated Tank No. 8 and No. 1 Rehabilitation - Bid Award
History
Elevated Tank No. 8 (Tank 8) is located at 15501 Park Station Boulevard, was built in 1979 by Chicago Bridge & Ironworks, and is a 500,000-gallon elevated single pedestal tank.
Elevated Tank No. 1 (Tank 1) is located at 117801 S. Wolf Road, was built in 1994, also by Chicago Bridge & Iron Works, and is a 2,000,000-gallon elevated single pedestal tank.
In October 2015, Pittsburg Tank & Tower Maintenance Company was hired to complete a full inspection of all seven (7) water towers. At the time of the inspection, Tanks 8 & 1 had very minor failures in the coating system, so it was recommended to renovate the tanks in the next five (5) years. Due to the other towers having more immediate concerns, as the annual plan was developed for all the towers, Tanks 8 & 1 were pushed slightly further out.
On June 26, 2019, the Illinois EPA conducted an inspection of the Village’s water system. Though no violations were found, the report did include a recommendation to address paint issues and re-paint Tank 8 & 1. Village staff was then required to submit a plan of action to comply with its recommendation. The Illinois EPA was informed that plans to renovate all seven (7) water towers was already underway.
Tanks 8 & 1 will be the sixth and the seventh, respectively, of seven (7) water towers to be rehabilitated. Public Works staff has been working closely with Christopher B. Burke Engineering on the rehabilitation design. The rehabilitation work includes surface repair and repainting, a new concrete floor, antenna and fall protection corral, and miscellaneous steelwork. The new exterior paint scheme is proposed to match the paint scheme that was Board approved in 2019, which features the new Village logo and white exterior on Tank 1. Tank 8 will also have a Centennial West logo added that was Board approved.
The Elevated Tank No. 8 and No.1 Rehabilitation project was advertised on BidNet Direct on December 21, 2023, with a submission deadline on January 23, 2024. Twenty-five (25) companies downloaded the specifications. The Village received four (4) bids for consideration, a summary of which is below.
Era-Valdivia Contractors, Inc, of Chicago, Illinois - $2,698,500.00
Jetco, Ltd, of Wauconda, Illinois - $2,850,311.00
Tecorp, Inc, of Joliet, Illinois - $3,460,712.00
Neumann Company of Merrillan, Wisconsin- $4,167,400.00
As an RFP, the Village evaluates proposals based on prices, vendor qualifications, and additional factors deemed relevant. The Village of Orland Park retains the right to accept any proposal, any part or parts thereof, or reject all proposals.
The Village has worked previously with Era-Valdivia Contractors, Inc., most recently in 2023 on the Tower 10 and Tower 8 Rehabilitation project. The Village had numerous issues in working with Era-Valdivia on this project, mostly related to scheduling and completing work in a timely manner. In not adhering to the project plans, time frames, and provisions detailed in the construction documents, the project suffered a lengthy delay in completion, and an overall time-consuming and frustrating experience for Village staff. Near continuous supervision by Village staff and outside consultants was ultimately necessary to ensure that the project was moved forward. All deficiencies were documented in corrective letters to the contractor. These delays prevented the Tower 8 part of the project to begin, and Era-Valdivia Contractors defaulted completion of Tower 8 on the contract in October 2023.
The Village has worked previously with Jetco Ltd. between 1997 and 1999 on our tanks, and there were no documented issues. Jetco Ltd. is also recommended by our design engineer, and they have performed well for other municipalities, including the well-known “Rose tank” in Rosemont and Woodfield Mall tank in Schaumburg. Jetco Ltd. also provided a revised best and final offer bid after discussion where held on their proposal quantities. This revised proposal reduced their price on the bid tab by $109,137.00.
The proposal price difference between Jetco, Ltd, and Era-Valdivia Contractors, Inc. is within 5% and the Public Works Department believes the Village will receive a better project by Jetco, Ltd to complete Tower 8 by the June 1st deadline, and Tower 1 by 180 days after notice to proceed.
Based on the evaluations, staff recommends approving the base bid from Jetco, Ltd for $2,850,311.00. A $150,000.00 contingency (which is less than 5%) is requested to address change orders made necessary by circumstances not reasonably foreseeable at the time the bid was signed, for a total contract price not to exceed $3,000,311.
This agenda item is being considered by the Committee of the Whole and the Village Board of Trustees on the same night.
Financial Impact
Funding is available from the Water Capital Account 5008150-570600 in the 2024 Budget. The 2024 budget amount for the project was $3,800,00.00.
Recommended Action/Motion
I move to accept the base bid from Jetco, Ltd, of Wauconda, Illinois, for RFP23-073 Elevated Water Tanks #8 and #1 Rehabilitation and award a contract in an amount of $2,850,311.00 plus $150,000.00 contingency for a total amount not to exceed $3,000,311.00;
AND
Authorize the Village Manager to execute all related contracts, subject to Village Attorney review;
AND
Authorize the Village Manager to approve change orders not to exceed the contingency amount.