Broward County Commission Regular Meeting
Director's Name: Glenn Wiltshire (Acting Director)
Department: Port Everglades Division: Seaport Engineering and Construction
Information
Requested Action
title
MOTION TO APPROVE Change Order No. 5 to Agreement No. X1349802P1 between Broward County and Moss/Kiewit Joint Venture, Managing General Contractor for the Port Everglades Southport Turning Notch Expansion and Southport Crane Rail Infrastructure Improvement Project, to increase the Reconciled Guaranteed Maximum Price in the amount of $9,573,246, from a total of $471,031,588 to $480,604,834; and authorize the Mayor and Clerk to execute same.
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Why Action is Necessary
In accordance with Broward County Procurement Code Section 21.56, Broward County Board of County Commissioners approval is required for change orders of $ 250,000 or more.
What Action Accomplishes
Approves Change Order No. 5 providing for the revised Reconciled Guaranteed Maximum Price to include additional scope items within the project.
Goal Related Icon(s)
☒County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None
Summary Explanation/Background
THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County Board of County Commissioners’ (“Board”) Goal of “Ensuring accessible, seamlessly integrated investment in renewable energy, sustainable practices, manufacturing, resilient infrastructure, and environmental protection.”
The Office of Economic and Small Business Development (“OESBD”) did not establish a County Business Enterprise (“CBE”) program goal for this project since it was anticipated that Federal funding was to be used for a portion of the project. This project is designated as a small business participation component project under 49 CFR Section 26.39, and the Broward County Disadvantaged Business Enterprise Program Plan. Per 49 CFR Part 80 and implementing guidance, the requirements of 49 CFR Part 26 apply to this project. The Moss/Kiewit Joint Venture (“Moss/Kiewit JV”), is in compliance with the OESBD requirements (see Exhibit 2).
On May 23, 2017 (Item No. 66), the Board approved the Agreement between Broward County and Moss/Kiewit Joint Venture for Request for Proposal X1349802P1, Managing General Contractor for Port Everglades Southport Turning Notch Expansion and Southport Crane Rail Infrastructure Improvements, with an Estimated Guaranteed Maximum Price (“EGMP”) of $437,493,624, of which $4,113,765 was approved for Preconstruction Services. The agreement established 1,539 calendar days for Project Substantial Completion.
On January 29, 2019 (Item No. 61), Change Order No. 1 was approved by the Board establishing the Reconciled Guaranteed Maximum Price (“RGMP”) of $471,031,588, an increase of $33,537,964 to the Agreement. Change Order No. 1 added an additional 654 calendar days for Project Substantial Completion, for a total contract term of 2,193 calendar days.
On January 14, 2020, the Acting Port Director approved Change Order No. 2, decreasing the Agreement RGMP amount by $12,500,000 to $458,531,588 to fund Professional Liability deductibles that were not specified in the Agreement. No change in contract time was included in this Change Order.
On February 16, 2022, the Port Director approved Change Order No. 3, incorporating construction of the Southport Phase 9-A container terminal yard into the Agreement. This Zero Dollar Change Order resulted in no change to the RGMP, but added 192 calendar days for Project Substantial Completion, for a total contract term of 2,385 calendar days.
On July 31, 2023, during the Board’s 2023 Summer Recess, the County Administrator approved Change Order No. 4, restoring the $12,500,000 to the originally approved RGMP due to the additional project costs due to supply chain issues associated with COVID impacts as well as additional scope associated with underground utilities and the discovery of contaminated soils requiring implementation of an approved Soil Management Plan to proceed with the Southport Phase 9-A Container Yard Improvements. In addition to the $12,500,000 added by Change Order No. 4, the contract term for Project Substantial Completion was extended by 441 calendar days to March 31, 2025, to account for the implementation of the Soil Management Plan.
This Change Order No 5 (See Exhibit 1), provides for an additional $ 9,573,246 in funding for the following items:
• Remove and dispose of existing marine fenders at Southport Berths 31-33 and furnish and install a new fender system for Berths 31-33 at a cost of $4,850,000. The fenders have reached the end of their useful life and require total replacement. Although not part of the original Project, the County Auditor’s Office concurred that using the Moss/Kiewit JV team to complete this additional work was the most efficient and cost effective approach.
• Complete additional dredging at the northeast corner of the Southport Turning Notch to a minimum depth of 42 feet as required by the Port Everglades Pilots to provide a greater margin of safety to ensure safe passage of ships transiting the northeast corner of the Turning Notch at a cost of $1,400,000.
• Demolition and removal of the existing truck scale facility located at the entrance of the Southport Phase 9-B container terminal land at the request of the tenant to accommodate changes in terminal operations resulting from the Turning Notch Expansion. The work will require demolition of concrete ramps and pavement restoration at a cost of $350,000.
• Construction of additional underground utility improvements to fit up the Southport 9-A container yard, including FPL conduits, water main, and sanitary sewer improvements to provide utilities consistent with the tenant proposed layout of the container terminal at a cost of $1,265,288.
• Clearing and restoration of the Port’s Dredged Material Management Area (“DMMA”) in Southport. The DMMA is used to allow dredged material from Port berth maintenance dredging to dry prior to trucking offsite. The restoration requires clearing and regrading of the site at a cost of $240,000.
• Additional Payment/Performance Bond costs and Moss/Kiewit JV fee at a cost of $597,663.
• Construction Contingency of 10% of the Change Order total, amounting to $870,295.
To capitalize on the existing Moss/Kiewit JV resources already on site for the balance of construction of the project thru March 2025, Port staff believes that it is in the best interest of the County to include this work within the scope of work for the subject Agreement. It is anticipated that this Change Order scope will be fully completed by March 2025, within the existing contract time.
As noted in the Agreement history, Change Order No. 1 established the RGMP or final contract value in accordance with the terms of the Agreement. Change Order No. 2 reduced the RGMP by $ 12,500,000, which was restored in Change Order No. 4 to the original RGMP for the reasons stated. This Change Order No. 5 in the amount of $9,573,247 represents 2% of the RGMP final contract value and is within the Procurement Code allowance of 5%.
Source of Additional Information
Glenn Wiltshire, Acting Port Director, Port Everglades Department, (954) 468-3504
John Foglesong, P.E., Director, Seaport Engineering & Construction Division (954) 468-0142
Fiscal Impact
Fiscal Impact/Cost Summary
This Change Order will be funded by a funds transfer in the Second Supplemental.