The proposed Modification No. 2 to Contract No. DCAM-23-CS-RFP-0016 with Smoot Construction Company seeks to increase the not-to-exceed (NTE) amount by $8,267,292, raising the total contract value from $5,940,809 to $14,208,101. This funding is designated for the early release of funds for an additional initial phase of the Brent Elementary School modernization project, which encompasses various construction services, including demolition, concrete work, and the installation of structural steel and sprinklers. The modification is necessary to ensure the project's timely completion while the full scope and guaranteed maximum price are finalized.

The contract, initially approved by the Council on May 3, 2024, is structured as a cost-plus fixed fee agreement with a guaranteed maximum price, and the proposed modification requires Council approval due to the increase exceeding $1 million. The modification also includes a $1,354,000 allowance for owner-directed changes and other project-related expenses. Furthermore, Smoot Construction Company agrees to release any potential claims against the Department of General Services related to delays or additional costs arising from this modification, while all other terms of the original contract remain unchanged. The bill underscores the necessity of obtaining written pre-authorization from the Department to utilize the owner's allowances.