Meeting_Body
CONSTRUCTION COMMITTEE
MAY 18, 2017
Subject/Action
SUBJECT: METRO RED LINE (MRL) METRO ORANGE LINE (MOL) NORTH HOLLYWOOD STATION WEST ENTRANCE
ACTION: AUTHORIZATION FOR CONTRACT MODIFICATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer (CEO) to execute a final Modification to Contract C1013R, with Skanska USA Civil West California District Inc., for the design and construction of the west entrance at the North Hollywood Station on the Metro Red Line, in the amount $1,261,770, adjusting the total current contract price from $15,743,901.61 to $17,005,671.61 within the life of project budget.
Issue
ISSUE
This action is necessary to execute a final Contract Modification with Skanska USA. This final Modification represents staff’s efforts through negotiations to settle various unforeseen field conditions and construction changes encountered on the project that impacted both scope and schedule. This Contract Modification is required to close-out the Contract, and does not affect the Life of Project (LOP) budget. Through aggressive management and partnership with the contractor, staff delivered this project on-time and under the LOP budget.
Discussion
DISCUSSION
Findings
Metro issued the Notice to Proceed (NTP) for Design-Build (DB) Contract No. C1013R for the Metro Red Line - Metro Orange Line North Hollywood West Entrance on February 11, 2014. The west entrance was opened to public on August 15, 2016.
During the course of construction, the Contractor requested numerous design and construction changes. Significant changes included design provisions and inclusion of a knock out panel for future escalator expansion, additional communications or SCADA system design and construction required to improve the safety functions of the existing North Hollywood system, increase in scope for procurement and installation of Metro Furnished Equipment, differing site conditions encountered during excavation, and time extension and related overhead due to compensable delays encountered.
Considerations
Staff has evaluated the merit of the requested changes and has followed Metro processes and procedures to validate and negotiate the change requests. A list of executed (approved) and unexecuted (pending) modifications is included in Attachment B.
There is no change in the approved LOP amount of $23,077,401.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
There is no safety impact associated with this action.
Financial_Impact
FINANCIAL IMPACT
This action requires an additional $1.26 million in FY17 for the Metro Orange Line to Metro Red Line Hollywood Pedestrian Underpass in project 204122 due to staff closing out the contract earlier than expected. Upon Board approval, staff will re-allocate funds from a project with fungible funding source underutilizing its FY17 budget. No increase to the Agency’s FY17 budget is sought at this point. This increase in the yearly project cashflow does not impact the approved project LOP for 204122 of $23,077,401.
Impact to Budget
Prop A 35% bond will used to fund the Contract Modification. This source is appropriate, and is eligible for capital improvements to rail operations.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may choose not to authorize the increase in contract price. This alternative is not recommended, as staff would be unable to issue the final Contract Modification and close out the contract.
Next_Steps
NEXT STEPS
Upon obtaining Board approval, Metro will issue the final Contract Modification and proceed with Contract closeout.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - Contract Modification/Change Order Log
Attachment C - DEOD Summary
Prepared_by
Prepared by:
Milind Joshi, Sr. Director, Project Engineering, (213) 922-7985
Brad Owen, Deputy Executive Officer, Construction Management, (213) 922-7384
Tim Lindholm, Executive Officer, Capital Projects (213) 922-7297
Reviewed_By
Reviewed by:
Debra Avila, Chief Vendor/Contract Management Officer, (213) 418-3051
Richard Clarke, Chief Program Management Officer, (213) 922-7557
