Post on 22-May-2020
HONOLULU AUTHORITY tor RAPID TRANSPORTATION
July 18, 2019
MEMORANDUM
TO: ,,..
THROUGH: Andrew S. Robbi a,h .. <lfl/J Executive Direct a CEO ~ tJP/1-Charles S. Carn ggiolf f.~~~ Project Director an~~oharge
THROUGH:
THROUGH: ~
FROM: )&ln o / East:; ea Construction Manager
/C I Request for Change Order Approval
;
/S'himmick/Traylor/Granite Joint-Venture Airport Guideway and Stations Design-Build Contract
SUBJECT:
IN REPLY REFER TO:
CMS-AP00-03534
Andrew S. Robbins
EXECUTIVE DIRECTOR AND CEO
BOARD OF DIRECTORS
Damien T.K. Kim CHAIR
Terrence M. Lee VICE CHAIR
Michele Chun Brunngraber
Jade Butay John Henry Felix
Wes Frysztacki Kamani Kuala'au
Wesley K. Machida Tobias Martyn
Glenn M . Nohara Ember Shinn
Kathy Sokugawa Hoyt H. Zia
Contract Change Order - Contaminated Water at HOOT-Airport Lots A and J Contract No. CT-HRT-1600385
Overview HART staff is requesting this Amendment to the AGS contract for the additional cost the Contractor has incurred as a result of the discovery of contaminated groundwater within the Project site on HOOT-Airport property.
As a result of the discovery, the Contractor is experiencing additional costs for equipment delays, additional on-site mobilizations and storage, handling, and treatment and disposal of water found to be above HDOH Environmental Action Levels for commercial or industrial properties.
The final scope and cost of this Amendment are dependent upon the various levels of contamination encountered during the Contractor's shaft construction operations. Because the level of contamination is unknown and not quantifiable at this time, the proposed methodology for compensation will be through a Provisional Sum based on actual supported incurred costs.
This will be a Provisional Sum with a Not-to-Exceed value of $10,000,000.00
Justification • On December 10, 2018, HART was notified that Contractor's laboratory analysis identified elevated
concentrations of potentially hazardous substances in the groundwater within HDOT-A property (specifically the solvent trichloroethylene TCE and TCE byproducts.)
• HDOH, HDOT-A, HART, and STG JV worked together on a solution and on April 22, 2019, HDOH accepted the Site-Specific EHE-EHMP allowing HART and STG JV to begin implementation and resume construction activities.
CITY AND COUNTY OF HONOLULU , Al ii Place, Suite 1700, 1099 Alakea Street. Honolulu, Hawaii 96813
Phone: (808)768-6159 Fax: (808)768-5110 www.honolulutransit.org
HART Board of Directors Page 2 July 18, 2019
• This Amendment will: - Keep Project Moving: Allows the Contractor to receive reimbursement for costs associated with
the impacts associated with the work stoppage and eventual remediation cost due to the encountering contaminated water. The Contractor was able to resume work incrementally in Airport Lots A and J as discussed.
- Reduces Risk: The Site-Specific EHE-EHMP was developed to provide the Contractor with instruction of the proper handling, treatment, and disposal of contaminated water and soil encountered during their construction operations at this site. The plan allows work to continue with the proper procedures in place, to expand the AGS project scope to meet the environmental requirements and to mitigate further delays due to contamination conditions.
- Preserves Schedule: Project Critical Path Schedule impacts are yet to be determined and will be available when the Contractor submits the Time Impact Analysis (TIA).
Recommendation As a result of the discovery of TCE groundwater contamination within the Project site:
• HART staff recommends that the Board approve the Amendment for the Provisional Sum to cover the costs the Contractor has experiences in equipment delays and additional on-site mobilizations, storage, handling, treatment and disposal of water, found to be above HDOH Environmental Action Levels (EALs) for commercial or industrial properties.
• This Amendment will have a Not-to-Exceed value of $10,000,000
• This Amendment will be funded from the AGS contract allocated contingency.
Honolulu Authority for Rapid Transportation
STAFF SUMMARY TITLE: STAFF CONT ACT: DATE: CT-HRT-1600385, Airport Guideway and Stations DB; Contract Change Order
John Moore July 18, 2019 for Contaminated Groundwater at HOOT-Airport Lots A & J Area Manager East
Type: Goal Focus Area Reference Notes
[8J Action/Approval [8J Project Delivery D Livability/Land Use
D Information D Service Delivery D Partnerships
D Follow-up D Resource Stewardship D Agency Admin.
1. Purpose:
• HART staff is requesting this Amendment to the AGS contract for the additional cost the Contractor has incurred as a result of the discovery of contaminated groundwater within the Project site on HOOT ·Airport property.
• As a result of the discovery, the Contractor is experiencing additional costs for equipment delays, additional on-site mobilizations and storage, handling, and treatment and disposal of water found to be above HDOH Environmental Action Levels for commercial or industrial properties.
• The final scope and cost of th is Amendment are dependent upon the various levels of contamination encountered during the Contractor's shaft construction operations. Because the level of contamination is unknown and not quantifiable at this time, the proposed methodology for compensation will be through a Provisional Sum based on actual supported incurred costs.
• This will be a Provisional Sum with a Not-to-Exceed value of $10,000,000.00
2. Background/Justification
• On December 10, 2018, HART was notified that Contractor's laboratory analysis identified elevated concentrations of potentially hazardous substances in the groundwater within HOOT-A property (specifically the solvent trichloroethylene TCE and TCE byproducts.)
• HDOH, HOOT-A, HART, and STG JV worked together on a solution and on April 22, 2019, HDOH accepted the Site-Specific EHE· EHMP allowing HART and STG JV to begin implementation and resume construction activities.
• This Amendment will: . Keep Project Moving: Allows the Contractor to receive reimbursement for costs associated with the impacts associated with the
work stoppage and eventual remediation cost due to the encountering contaminated water. The Contractor was able to resume work incrementally in Airport Lots A and J as discussed.
. Reduces Risk: The Site-Specific EHE-EHMP was developed to provide the Contractor with instruction of the proper handling, treatment, and disposal of contaminated water and soil encountered during their construction operations at this site. The plan allows work to continue with the proper procedures in place, to expand the AGS project scope to meet the environmental requirements and to mitigate further delays due to contamination conditions.
. Preserves Schedule: Project Critical Path Schedule impacts are yet to be determined and will be available when the Contractor submits the Time Impact Analysis (TIA).
3. Board Authority
HART Board is required to approve all Change Order/Contract Amendment over an absolute value of $1 M. The absolute value of this Change Order exceeds $1M.
4. Procurement Background
This CCO has been processed in accordance with Contract terms and Construction Change Order Procedures.
5. Financial/Budget Impact
This CCO will have a Not-to-Exceed value of $10,000,000 and funded from the AGS contract allocated contingency.
6. Pol icy Impact
Not Applicable
7. Public Involvement
Not Applicable
8. Alternatives
Not Applicable
9. Exhibits
PowerPoint Presentation
Contaminated Water HDOT-Airport Lots A and J
Airport Guideway and Stations Design-Build
Contract CT-HRT-1600385
Board of Directors Meeting July 18, 2019 Honolulu, Hawaiʻi
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Purpose
To seek Board approval of an amendment to the AGS contract for the additional cost theContractor has incurred as a result of the discovery of contaminated groundwater withinthe Project site on HDOT-Airport property.
The final scope and cost of this Amendment is dependent upon the various levels ofcontamination encountered during the Contractor’s shaft construction operations.Because the level of contamination is unknown and not quantifiable at this time, theproposed methodology for compensation will be through a Provisional Sum based onactual supported incurred costs.
This change order will have a Not-to-Exceed value of $10,000,000.00
3
Background
On December 10, 2018, HART was notified that the Contractor’s laboratory analysisidentified elevated concentrations of potentially hazardous substances in thegroundwater within HDOT-A property (specifically the solvent trichloroethylene TCEand TCE byproducts.)
On December 15, 2018, as a result of these findings and as a potential generator ofthe contamination, HDOT-A issued a directive to suspend work at HDOT-A Lots Aand J.
On December 19, 2018, the Contractor provided notice to HART that it would besuspending work in Lot A and Lot J in compliance with the HDOT-A directive.
4 Background (Continued)
On December 27, 2018, HART received a letter from the State of Hawaii Departmentof Health (HDOH) requiring additional environmental sampling and development ofa Site-Specific Environmental Hazard Evaluation and Environmental HazardManagement Plan (EHE-EHMP), prior to resuming construction in the area of themonitoring well.
On January 10, 2019, HART, STG JV, HDOT-A, and HDOH met to discuss previous dataand options to expedite both sampling and the review/approval of the Site-SpecificEHE-EHMP.
On January 15, 2019, HART responded to HDOH’s letter citing HART’s willingness andability to undertake appropriate response actions within a reasonable period of timewith the intention of enabling STG JV to continue work.
5 Background (Continued)
Through the HART Hazardous Material Contract, fourteen additional groundwater monitoringwells were installed and sampled to characterize the plume of contamination within theconstruction area, as required by HDOH. The sampling results allowed HART to develop theSite-Specific EHE-EHMP, initially submitted to HDOH in February 2019. The Site-Specific EHE-EHMP dictates storage, treatment, and sampling requirements for water. The most practicaland cost-effective method for treating water found to be above HDOH Environmental ActionLevels (EALs) for commercial or industrial properties is with an on-site activated carbonfiltration system, which is being implemented under the scope of this change.
HDOH, HDOT-A, HART, and STG JV worked together on a solution and on April 22, 2019,HDOH accepted the Site-Specific EHE-EHMP allowing HART and STG JV to beginimplementation and resume construction activities.
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Opportunities with this Strategy
Keep Project Moving Allows the Contractor to receive reimbursement for costs associated with the impacts
associated with the work stoppage and eventual remediation cost due to the encountering contaminated water. The Contractor was able to resume work incrementally in Airport Lots A and J as discussed above.
Reduces Risk The Site -Specific EHE-EHMP was developed to provide the Contractor with instruction of the
proper handling, treatment and disposal of contaminated water and soil encountered during their construction operations at this site. The plan allows work to continue with the proper procedures in place, to expand the AGS project scope to meet the environmental requirements, and to mitigate further delays due to contamination conditions.
Preserves Schedule Project Critical Path Schedule impacts are yet to be determined and will be available when
the Contractor submits the Time Impact Analysis (TIA).
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Cost Overview
Awarded Value of Contract $ 874,750,000.00
Previously Authorized Changes $ (13,242,671.09)
Contract Value Prior to this CCO $ 861,507,328.91
Proposed Amendment * $ 10,000,000.00
Total Contract Value $ 871,507,328.91
*Funded from the AGS contract allocated contingency.
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Recommendation
As a result of the discovery of TCE groundwater contamination within the Project site:
Approve the Amendment for the Provisional Sum of $10,000,000 to cover the costs the Contractor has experiences for equipment delays, additional on-site mobilizations and storage, handling, and treatment and disposal of water found to be above HDOH Environmental Action Levels for commercial or industrial properties.
This Amendment will have a Not-to-Exceed value of $10,000,000
This Amendment will be funded from the AGS contract allocated contingency.
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Questions?
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