Title
Dept/ Agency: Water and Sewer Utilities
Action: ( X ) Ratifying ( X ) Authorizing ( X ) Amending
Type of Service: Closeout Change Order #2/Amend Resolution 7R12-b adopted on December 21,2022 and Resolution 7R12-a adopted August 7, 2024
Purpose: To execute Contract Closeout Change Order #2 Emergency Repair of Sewers - Contract 01-WS2022.
Entity Name: Montana Construction Corp., Inc.
Entity Address: 80 Contant Avenue, Lodi, New Jersey 07644
Contract Amount: Increase the contract amount by $189,784.11 for total not to exceed $2,024,347.81
Funding Source: Capital Budget/Department of Water and Sewer Utilities Utilities/ NW038-800-8007-71970-B2025
Contract Period: 730 calendar days from the date of a written Notice to Proceed
Contract Basis: ( X ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
Additional Information:
Resolution 7R12-b adopted on December 21, 2022 awarded a contract in an amount not to exceed $1,529,563.70 for a period of 730 calendar days from the date of the written Notice to Proceed.
Resolution 7R12-a adopted on August 7, 2024 Change Order #1 increased the contract amount by $305,000.00 for a new total contract amount not to exceed $1,834,563.70 with no extension on the contract period of 730 calendar days from the date of the written Notice to Proceed.
Close-out Change Order# 2 will increase the contract amount by $189,784.11 for a new total contract amount not to exceed $2,024,347.81 with no extension on the contract period of 730 calendar days from the date of the written Notice to Proceed
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WHEREAS, Resolution 7R12-b adopted on December 21, 2022, authorized the award of Contract 01-WS2022, Emergency Repair of Sewers, to Montana Construction Corp., Inc. 80 Contant Avenue, Lodi, New Jersey 07644, in the amount of $1,529,563.70 for a period of 730 calendar days from the date of the written Notice to Proceed, in accordance with the Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq.; and
WHEREAS, Resolution 7R12-a adopted August 7, 2024 authorized change order # 1 which increased the contract amount of $305,000.00 and no extension of 730 calendar days from the date of the written Notice to Proceed; and
WHEREAS, on May 28, 2024, a new contract for Emergency Repairs of Sewers was publicly advertised, and the lowest responsible responsive bidder was Shauger Property Service, Inc.; and
WHEREAS, during the award process, Shauger Property Service, Inc. requested to withdraw their bid, but failed to comply with the strict requirements of N.J.S.A. 40A:11-23.3, as such, the City could not consent to their request to withdraw their bid and proceeded to award the contract by governing body approval; and
WHEREAS, Shauger refused to execute the contract indicating that they made a numerical error in their bid, because of their untimely request to withdraw the bid the City proceeded to notify their Bid Bond Company; and
WHEREAS, once the matter was resolved with the Bid Bond Company the City was able to award the contract to the second lowest bidder Underground Utilities (a copy of Correspondences with Shauger, Notice of Claim to Bond Company and corresponding emails are attached); and
WHEREAS, Montana continued to provide uninterrupted Emergency Repair of Sewers during the legal dispute with Shauger and the contract was eventually awarded to the second lowest responsible responsive bidder, Underground Utilities Corporation; and
WHEREAS, due to delays in the award process, the formal contract award to Underground Utilities Corporation was not issued until December 18, 2024, thereby necessitating the continuation of services by Montana Construction Corporation during this period; and
WHEREAS, during this time, the available funds for Montana Construction Corporation were exhausted, the contract amount was exceeded, therefore, the Department seeks to amend the contract and execute Contract Closeout Change Order #2 to Contract 01-WS2022, Emergency Repair of Sewers, with Montana to increase in the contract amount by $189,784.11 for a new contract amount of $2,024,347.81.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor of the City of Newark and/or his designee, the Director of the Department of Water and Sewer Utilities, are authorized to enter into and execute Contract Change Order #1 to Contract 01-WS2022, Emergency Repair of Sewers with Montana Construction Corp., Inc. 80 Contant Avenue, Lodi, New Jersey 07644, to increase the contract amount by $189,784.11 bringing the final contract amount to $2,024,347.81, and no extension of 730 calendar days from the date of the written Notice to Proceed.
2. Pursuant to N.J.A.C. 5:30-5.5(a), a Temporary Budget, attached hereto is a partial Certification of Funds from the Chief Financial Officer, which states that funds in the amount of Five Thousand Dollars and Zero Cents ($5,000.00), are available in the Water and Sewer Utilities Capital Budget under Business Unit NW038, Department ID 800, Division/Project 8007, Account # 71970, Budget Ref. B2025 and which shall be filed along with the original Resolution in the Office of the City Clerk.
3. This Closeout Change Order is ratified from the date of the Contract Modification Proposal and Acceptance (Closeout Change Order #2) to the date of this authorizing Resolution.
4. A fully executed copy of the Closeout Change Order #2 shall be filed in the Office of the City Clerk by the Director of the Department of Water and Sewer Utilities.
5. A fully executed copy of the Closeout Change Order #2 shall be filed with the New Jersey Department of Environmental Protection (NJDEP) by the Director of the Department of Water and Sewer Utilities.
6. If required by State Law, the Acting City Clerk shall provide the appropriate notice of the award of this contract to the State Comptroller, no later than twenty (20) business days following such award, in accordance with N.J.S.A. 52:15C-10 and the Notice of the Office of the State Comptroller dated May 7, 2008.
STATEMENT
This Resolution ratifies, amends and authorizes the Mayor of the City of Newark and/or his designee, the Director of the Department of Water and Sewer Utilities, to enter into and execute Contract Closeout Change Order #2 for Contract 01-WS2022, Emergency Repair of Sewers with Montana Construction Corp., Inc. 80 Contant Avenue, Lodi, New Jersey 07644, increasing the contract amount by $189,784.11 for a new total contract amount of $2,024,347.81, and no extension of 730 calendar days from the date of the written Notice to Proceed.