SUBJECT/RECOMMENDATION:
Title
Approve modifications to Purchase Order ST 112388 to Omega Sign Service Corporation of Odessa, Florida, in order to allow Omega to complete contractual obligations to construct scoreboards and decorative signs at Carpenter Complex and Jack Russell Stadium. (consent)
Body
SUMMARY:
Omega Sign Service Corporation of Odessa, Florida was awarded a purchase order contract to construct scoreboards and decorative signs at Carpenter Complex and Jack Russell Stadium in the amount of $163,225 on December 3, 2015. Notice to Proceed was given on December 9, 2015 with a projected construction and completion date of February 10, 2016 (45-day contract).
As of May 23, 2016, the contract has yet to be completed. The City has paid invoices based on work performed and materials and scoreboards on site of $69,227 leaving a balance of $93,998 to complete the contract.
Based on the fact that the contract was not completed on time, the City has determined that Omega Sign Service Corporation is in default of the contract (S.17) and unable to complete the contract without some modifications to the contract.
In an attempt to salvage the work already done and the fact that the contractor is willing to work with the City to complete the project the contract will be modified under Remedies (S. 18). These remedies allow for the City to purchase the services required under the contract from the open market to complete the required work.
Since Omega Sign is willing to do all of the work required by the contract but does not have the financial means to purchase necessary materials and labor to complete the project, the City will purchase these items with the cost of said items deducted from the contract issued to Omega Sign Purchase Order ST112388.
A complete list of equipment, supplies and labor necessary to complete the project has been identified. Items from this list will be purchased by the City according to all city purchasing requirements. Omega will then construct the signs using city-owned materials and services under the direct supervision of Parks and Recreation Construction Manager.
If there is a balance of funds remaining in purchase order ST112388 after all invoices have been paid, the remainder will be submitted to Omega Signs. The current estimate cost to complete the project based on the list is $91,004.20. The current balance remaining in the purchase order is $93,998, leaving a balance of $2,993.80 for Omega Signs once the project is complete.
Upon approval, Omega will complete construction of the signs according to the specifications no later than 30 days. Failure to do so will result in default of the modified contract and all materials and equipment purchased will be forfeited to the City.
This modified contract does not invalidate the remainder of the original purchase order contract and all other conditions of the contract remain in force.
APPROPRIATION CODE AND AMOUNT: N/A
USE OF RESERVE FUNDS: N/A