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titleNapoleon Facility Rehabilitation: Amendment to CDW Services Contract (Builder’s Risk Insurance)
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DESCRIPTION: Requesting Board Authorization to Amend CDW Services contract for Additional Builder’s Risk Insurance |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
Authorize the Chief Executive Officer to amend the CDW Services contract in the amount of $167,983.97 for the procurement of additional builder’s risk insurance.
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ISSUE/BACKGROUND:
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The Contractor’s builder’s risk insurance policy was due to expire on September 6, 2023. Builder’s risk policy is required to protect the contractor and RTA in the event there is damage to or total destruction of the building prior to substantial completion. The project delivery date of September 30, 2023, was beyond the limits of the original policy and the revised substantial completion has been extended to November 30, 2023, due to additional scope.
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DISCUSSION:
CDW Services has renewed their policy at the cost of $167,983.97 including their initial down payment of $40,000.00 as the project has been extended through November 30, 2023. As a result of many significant external factors, there have been significant changes to available products and pricing in the insurance industry throughout the Gulf Coast and South Louisiana in the last year. CDW’s current insurance agency does not allow month-to-month policies and requires that a policy must be procured to cover an entire calendar year. Their request for quotes from other agencies came back even higher.
FINANCIAL IMPACT:
Including previous change orders, CDW Services current contract value is $5,357,305.63. The confirmed amount for the renewal of the builder’s risk insurance policy is $167,983.97. The revised contract value is to be $5,525,289.60.
NEXT STEPS:
Upon Board approval, staff will amend/increase CDW Services contract to include the builder’s risk insurance through the substantial completion of the Napoleon Facility rehabilitation.
ATTACHMENTS:
1. Resolution
Prepared By: Christopher Cook, ccook@rtaforward.org
Title: Interim Director of Capital Projects
Reviewed By: Dwight Norton, dnorton@rtaforward.org
Title: Chief Planning & Capital Projects Officer
Reviewed By: Gizelle Johnson Banks
Title: Chief Financial Officer
12/4/2023
Lona Edwards Hankins Date
Chief Executive Officer