Okaloosa County BOCC — May 19, 2015 — New Admin Building - Deductive Change Order — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: May 19, 2015 TO: Honorable Chairman and Members of the Board FROM: James Puckett SUBJECT: New Admin Building - Deductive Change Order DEPARTMENT: Facility Maintenance BCC DISTRICT: 2 STATEMENT OF ISSUE: Request BCC approval of a Deductive Change Order ( #14-09) to Lord & Sons' Contract on the New Admin Building in the amount of $516,872.26 as a part of the Owner Direct Purchase Program. BACKGROUND: The Owner Direct Purchase (ODP) is a program that allows the County to use its tax exempt status to purchase some or all of the materials on its contracted construction projects in order to save the sales tax on those purchases. This tax savings is then deducted from the contractor's contracted price. The amount deducted from the contractor's contract includes the cost of the materials, shipping, and sales tax. At the beginning of the project to construct a new administration building, the County opted to utilize the ODP to reduce the final project cost. RECOMMENDATIONS: Staff requests approval of Deductive Change Order #14-09 to Lord & Sons' Contract #C12-1995-FM on the New Admin Building in the amount of $516,872.26 as a part of the Owner Direct Purchase Program. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator