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1-GO-V! f G. OGr"IVi. VI1. ili ? t i ?..ar t uur v vvnn ??nn r ?? cva c-r.-r ...+? ?c <br />6 <br />A value engineering,(VE) process to identify potential cost reductions was conducted-with <br />the low single prime contractor, J.M. Thompson Company. The result of the VE discussions <br />with J.M. Thompson was'a possible reduction of $682,118. The VE list and associated costs <br />were discussed at the January 18 School Board meeting. It should be noted that since the <br />Board meeting it has been determined that eliminating the rainwater recycling system would. <br />cause major modifications to the approved site plans. Resubmitting the plans for approval <br />would result in a lengthy delay of a Building Permit from the Town of Carrboro. Therefore, <br />the VE line item for eliminating the rainwater recycling system. has been omitted and J.M. <br />Thompson's revised VE reduction total is $569,618. <br />Since the Board meeting, architects, engineers, and Facilities Management staff have had VE <br />discussions with the low-bid multi prime contractors. J. H. Allen, Inc, Southern Piping <br />Company, Vaughan Electric Co., Quate Industrial Services, and ABL-Fire Protection <br />submitted the low multi prime bids on December 14. The attached list reflects the results of <br />these discussions. Overall, the value of the VE items negotiated from the multi prime <br />contractors is greater than the value offered by the single prime contractor. The total of the <br />VE items and project additions from the multi prime contractors is a reduction of $674,819. <br />FINANCIAL IMPACT: The total project costs are projected to be $23,241,036 if contracts <br />are awarded to the multi prime contractors and all value engineering options are taken. The <br />cost of the complete building, with no deletions is projected to be $23,936,100. Both figures <br />are over the projected budget developed last year of $21,957,245. If all the value engineered <br />options are accepted, the projected costs for elementary #10 are estimated to be $1,283,791 <br />(5.8%) higher than expected. <br />PERSONNEL IMPACT: none <br />RECOMMENDATION: As a result, Facilities Management recommends proceeding with <br />the low bids submitted by the multi prime contractors: J. H. <br />Allen, Inc, Southern Piping Company, Vaughan Electric Co., <br />Quate Industrial Services, and ABL=Fire Protection. Decisions <br />regarding the VE items can be addressed as the bids are reviewed <br />by the School Board and funding is approved by the. County <br />Commissioners. It is also recommended to accept the low bid for <br />the water and sewer installation submitted by Blackmon and <br />Associates in the amount of $634,848. <br />RESOLUTION: Be it,. therefore, resolved that-the Board of Education directs the <br />school administration to prepare and deliver a request to the <br />Orange County Board of County Commissioners for a Capital <br />Project Ordinance*to fund the Elementary # 10 project. Be it <br />Macintosh HD:Documents; January 2007:Elementary #10 vl.doc 2