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Approve Change Order No. 001 (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. 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").
Several equipment items were identified as candidates for direct purchase by the PRWC, including the equipment items included in Change Order No. 001 (refer to Exhibit "A"). The corresponding sales tax associated with these equipment purchases is $647,373.94. Change Order No. 001 deducts the equipment cost ($12,531,077.94) from GMP-3 to allow the Cooperative to direct-purchase these equipment items, resulting in a new Guaranteed Maximum Price of $201,923,246.06 (Exhibit "H"). In accordance with the CMAR Agreement, the Contractor (i.e., Florida Water Partners) 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 Mate...
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