SUBJECT
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Approve Change No. 003 (Deductive) to Guaranteed Maximum Price GMP-3 with Florida Water Partners for the Southeast Wellfield Water Production Facility (Action)
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DESCRIPTION
Guaranteed Maximum Price GMP-3 with Florida Water Partners (“FWP”) was approved by the Project Board on January 15, 2025 in the amount of $214,454,324.00. GMP-3 consists of the water production facility, production well site improvements, and raw water transmission main construction. A Conditional Notice-to-Proceed was issued to FWP on February 12, 2025 and a Construction Notice-to-Proceed was subsequently issued on May 20, 2025.
Rule 12A-1.094, F.A.C., Public Works Contracts, “governs the taxability of transactions in which contractors manufacture or purchase supplies and materials for use in public works contracts, as that term is referred to in Section 212.08(6), F.S”. Additionally, Article 14 of the Construction Manager-at-Risk (“CMAR”) Agreement allows the Cooperative to exercise its right to purchase directly various construction materials, supplies and equipment that may be part of a Subcontract (a.k.a., “Cooperative Purchased Material”).
On July 30, 2025, the Board approved Change Order No. 001 to GMP-3 for the direct-purchase of certain equipment items, resulting in sales tax savings of $647,373.94. The corresponding deductive change order amount of $12,531,077.94 resulted in a revised GMP of $201,923,246.06. On November 19, 2025, the Board approved Change Order No. 002 to GMP-3 for additional equipment items, resulting in an additional sales tax savings of $903,265.46. Change Order No. 002 deducted an additional $16,936,211.46 in equipment costs from GMP-3, resulting in a revised GMP of $184,987,034.60. At that time, the Project Board was advised that a subsequent deductive change order would be required to capture additional tax savings for equipment items included in GMP-3.
Exhibit “A” summarizes the GMP-3 owner-direct purchase equipment items, including one (1) additional equipment item which is included in Change Order No. 003. The corresponding sales tax savings associated with the Change Order No. 003 equipment purchase is $101,324.00. Change Order No. 003 deducts an additional $1,851,324.00 in equipment costs from GMP-3, resulting in a revised GMP of $183,135,710.60 (Exhibit H). The approval of GMP-3 will result in a total tax savings of $1,651,963.40 for the Southeast Wellfield WPF, production well sites, and raw water transmission system. In accordance with the CMAR Agreement, the FWP remains responsible for shop drawings, placing ordering, taking delivery, installation/testing of materials, and warranties. Additionally, the Cooperative is not liable for interruption or delays, defects or other problems associated with Cooperative Purchased Material.
RECOMMENDATION
Approve Change Order No. 003 (Deductive) to Guaranteed Maximum Price GMP-3 with Florida Water Partners for the Southeast Wellfield Water Production Facility, Production Well Sites, and Raw Water Transmission System (Action).
FISCAL IMPACT
Tax savings in the amount of $101,324.00.
CONTACT INFORMATION
Mark Addison