Broward County Commission Regular Meeting
Director's Name: Leonard Vialpando
Department: Public Works and Environmental Services
Division: Water & Wastewater Engineering
Information
Requested Action
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MOTION TO APPROVE termination for convenience of Contract No. PNC2120945C1 between Broward County and Shiff Construction & Development, Inc. for the construction of the Septage Receiving Facility Operations Administration Building; authorize the Director of Water and Wastewater Engineering Division, as Contract Administrator, to execute and issue the notice of termination pursuant to Section 15.4 of the Contract; and authorize the Contract Administrator to take all necessary administrative and closeout actions consistent with the Contract. (Commission District 2)
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Why Action is Necessary
Pursuant to Section 21.59 of the Broward County Procurement Code and Section 15.4 of the Contract, termination for convenience of the Contract requires approval by the Board of County Commissioners.
What Action Accomplishes
Authorizes termination for convenience of the Contract pursuant to Section 15.4 of the Contract.
Goal Related Icon(s)
☐County Commission
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Previous Action Taken
November 10, 2020, Regular Meeting (Item No. 46).
Summary Explanation/Background
THE PUBLIC WORKS AND ENVIRONMENTAL SERVICES DEPARTMENT AND THE WATER AND WASTEWATER SERVICES ENGINEERING DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.
On November 10, 2020 (Item No. 46), the Board of County Commissioners approved the fixed contract (Exhibit 1) for the construction of the Septage Receiving Facility Operations Administration Building (Project) located at 3092 North Powerline Road, Pompano Beach, Florida 33069 (Location Map Exhibit 2) to Shiff Construction & Development, Inc. (Contractor), as the lowest responsive and responsible bidder for Bid No. PNC2120945C1 (Contract). The Project was budgeted for approximately $3,070,648, including allowances.
On January 13, 2021, the County issued the first Notice to Proceed authorizing preliminary activities, including project submittals, permitting coordination, and mobilization activities. The Project subsequently experienced extended permitting review processes and multiple review cycles associated with permitting and development-order-related requirements through the applicable permitting authority. The Contract required issuance of all permits as a condition precedent to issuance of the second Notice to Proceed for additional construction work.
During the permitting phase, Contractor asserted that market conditions, escalation in construction costs, and project delays affected its ability to proceed under the original Contract pricing and schedule. Contractor requested additional compensation and other relief, which were not approved by the County. The parties were unable to reach agreement regarding continuation of the Project before the second Notice to Proceed was issued.
On April 21, 2022, the County issued a Notice to Cure pursuant to Section 15.1 of the Contract relating to Contractor’s performance obligations under the Contract. Contractor subsequently disputed the Notice to Cure and asserted various positions regarding permitting responsibilities, delay impacts, and contract administration.
Following evaluation of the Project status, permitting history, elapsed time, remaining work, potential costs associated with continued performance, and overall project administration considerations, County staff determined that termination for convenience pursuant to Section 15.4 of the Contract is in the County’s best interest (Exhibit 3).
If approved, the Contract Administrator will issue the notice of termination for convenience and administer Contract closeout activities in accordance with the Contract. County records reflect that payments totaling approximately $238,333 have been issued to Contractor under the Contract. Contractor has confirmed that the amount already issued covers all of Contractor’s expenditures on the Project and has communicated in writing its willingness to sign a release. No further payments to Contractor are outstanding or owed under this Contract.
All dollar amounts referenced in this agenda item have been rounded to the nearest whole dollar.
Source of Additional Information
Alicia Dunne, P.E., Director Water and Wastewater Engineering Division, (954) 831-0740
Fiscal Impact
Fiscal Impact/Cost Summary
Pursuant to Section 15.4 of the Contract, the Contractor has been compensated for all Work executed and actual expenses incurred. All materials and equipment purchased under the Contract have been turned over to the County. Therefore, approval of this item will not result in additional fiscal impact to the County.