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Government of the U.S. Virgin Islands DEPARTMENT OF PUBLIC WORKS March 21, 2019 Commissioner Nominee Anthony Thomas Department of Property & Procurement Building #1, Sub Base, 3“ Floor St. Thomas, U.S. Virgin Islands 00802 Re: _ Letter of Justification for COO3SPRC15 (GEC) Service Contract for Design-Build of Paul E. Joseph Stadium and Sports Complex (Lump Sum Contract Price) between Government of the Virgin Islands and GEC, LLC. Periodical Pay Estimate 17 Dear Commissioner Nominee Anthony Thomas: I am requesting your Agency’s direct assistance in the expeditious processing and signature approval of this Periodical Pay Estimate 17 in the amount of TWO MILLION NINETY SIX THOUSAND FIFTY AND 50/100 DOLLARS ($2,096,050.50). This request represents pertinent services rendered in the development of CO03SPRC15 (GEC) Service Contract for Design-Build of Paul E. Joseph Stadium and Sports Complex (Lump Sum Contract Price) between Government of the Virgin Islands and GEC, LLC. This specifically represents Payment allowed by the Contract to avoid delays in delivery of materials to the site. This invoice is for piles and mat slab rebar in compliance with the following contract clauses: From ion of the Contract: The Contractor shall be entitled to payment of the purchase and storage of Materials and Equipment for the Project off site provided that it complies with the payment processing procedures required under Appendix B, From Section 28 of the Contract which states the intent of payments before delivery to site and clarifies that Title to the material will pass to the Government on payment to the Contractor, that the Contractor has the requirement and risk for materials until they are delivered to the site, and the Contractor has the requirement to replace any materials for which it has responsibility. (c) Passage of Title. Title to all Materials and Equipment incorporated, or to be incorporated, into the Project (or to be stored for future incorporation into or used with respect to the Project) shall pass to Government at the earlier of (i) the time of payment therefor by Government regardiess of whether then delivered to the Site, any other staging area for the Design/Build Work, or any storage facility maintained by Government or (ii) delivery to the Site or incorporation into the Project. No such passage of title shall relieve Contractor of its obligations under this Service Contract with respect to the protection of and care for such Materials and Equipment. Contractor warrants and guarantees that legal title to all Design/Build Work and Materials and Equipment incorporated, or to be incorporated, into the Project or to be stored for future incorporation into or use with respect to the Project shall pass to Government free and clear of any and all liens, claims, security interests or other encumbrances. 6002 Anna's Hope 6 Susannaberg 8244 Subbase St. Croix, V.1, 00820 St. John, V.1, 00830 St. Thomas, V.1 00802 {340} 773-1290 [340] 776-6346 (340) 776-4844 pees) Commissioner Nominee Anthony Thomas| March 21, 2019 {d} Government and Contractor acknowledge that title to all Materials and Equipment to be transported to the Site by the Contractor remains with the Contractor until the earlier of the date payment fs made or the date it arrives at the Site, and that Government has rights in such Materials and Equipment as a result of having made payment therefor, even if delivery has not been completed. To evidence such rights, Contractor hereby grants to Government a lien and security interest (including, to the extent applicable, a security interest under the Uniform Commercial Code) in the Materials and Equipment held by Contractor, or held by any Subcontractor and identified as goods to which this Service Contract (or any agreement with any Subcontractor or Vendor) refers, regardless of whether such Materials and Equipment are parts, inventory, Design/Build Work in progress or finished goods. Such security interest shall secure Contractor’s obligations under this Service Contract, including the obligation to transfer title to Government upon termination as provided in Section 30 of this Contract. Contractor agrees to execute (and cause to be executed) such security agreements, financing statements or other lien or evidentiary documents as Government may reasonably request to evidence and perfect Government's rights in such Materials and Equipment. Until and to the extent such security agreements are entered Into, this Service Contract shall operate as a security agreement. {e} Contractor assumes all liability and risk until the Date of Substantial Completion related to damage to, or loss or destruction of (i) the Materials and Equipment (including consumables and regardless of where stored or located) and (ii) the Project. Contractor shall at its sole cost and expense promptly repair, restore or replace any property for which it has responsibility for risk of loss. It is my recommendation that this payment be processed in accordance with GVI contractual obligations. If you have any questions and/or concerns, please give James Grum, P.E., DPW/CIP Engineering Administrator a call at (340) 776-4844 ext. 4265. Respectfully, {A Nels . Pett¥Ir., P.E. Commissioner Department of Public Works NP/JG/jg Attachments: Pay Estimate 17 Pay Estimate 17 Analysis cc: Calvert White, Acting Commissioner of DSPR James Grum, P.E., CIP Engineering Administrator, DPW CONTRACT HO.: COO?SPRICTRQEC) LOCATION: 8 Crotr 216-18 zc, LLC v7 SCHEDULE OF AMOUNTS FOR CONTRACT PAYMENTS AS REVISED PER CHANGE OADER 10 ESTIMATE NO. NAME OF PROJECT: Ossign-Bulid of Paul E. Joseph Gtedium end Sports Complex NAME OF CONTRACTOR: i} a. ESECEE ELESECELEEEE EEESEZET ED == | rT oe JE Se Serer ee i | | tt? =+}| =) =f ea ede de bel seperate niet 2 Ben wen prompt oa perboerreed bo cate (Cctran & Frord)..—........ - x Aas Maeriae seek oe ofan pe (ache ining Seneca view rei ongae boa Lome: Aregurd Pgtedrcl = 6 Mel around eared on comet ie dele... ofc MSL Nn ee Eee nd REET (Deductions HH i 3 . fi LJ (ira 27. : 10.07 Re7 5 TM aT . Low oo pee - i cr a ey ebeiiedces felted eels erie al af hich arr ee latedabaalhy dy r ay eR rd aE ‘EAGER OF TH Ve LA . 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