Okaloosa County BOCC — February 17, 2015 — New Admin Building - Deductive Change Order — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: February 17, 2015 TO: Honorable Chairman and Members of the Board FROM: Don Turner SUBJECT: New Admin Building - Deductive Change Order DEPARTMENT: Facility Maintenance BCC DISTRICT: 2 STATEMENT OF ISSUE: (FM) Requests BCC approval of a Deductive Change Order to Lord & Sons' Contract on the New Admin Building in the amount of $741,693.02 as a part of the Owner Direct Purchase Program. BACKGROUND: The Owner Direct Purchase (ODP) program is a successful program for the County that allows the County to use its tax exempt status to purchase some or all of the materials on its construction projects in order to save the sales tax on those purchases. The amount included in the contractor's contract for materials that the County will purchase through the ODP program is deducted from the contractor's contract. Then, the materials are purchased by the County through its ODP program. The amount deducted from the contractor's contract will include 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 cost of the project. Staff recommends approval of the deductive change order. RECOMMENDATIONS: (FM) Staff requests approval of Deductive Change Order #14-07 to Lord & Sons' Contract #C12-1995-FM on the New Admin Building in the amount of $741,693.02 as a part of the Owner Direct Purchase Program. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator