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The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract No. 6006686 with Ajax Paving Industries, Inc., for Cold Patch Material, for a new contract amount not-to-exceed $256,500.00 and a term of one (1) year. The BOWC also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
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Agenda of October 16, 2024
Item No.: 2024-194
Contract No.: 6006686
Contractor: Ajax Paving Industries, Inc., 1957 Crooks Rd., Troy, MI 48084
Contract Total Amount: $256,500.00
Contact Term: 11/1/24-10/31/25 (1 year)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract 6006686
Patch Material
Ajax Paving Industries, Inc
MOTION
Upon recommendation of Marqaicha Welch, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract No. 6006686 with Ajax Paving Industries, Inc., for Cold Patch Material, for a new contract amount not-to-exceed $256,500.00 and a term of one (1) year. The BOWC also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
DWSD Warehouses receive, stock, store and issue materials to various DWSD Division to support the work of our Field Services and Maintenance & Repair Operations. Bituminous CP-5, Cold Patch material is essential to the day-to-day field work for many DWSD projects. Cold patch (specification #CP-5) is used year around to patch excavation holes on streets and sidewalks made by DWSD during water and sewer asset repairs. To support their work, DWSD’s Materials Management team maintains a readily available supply at both the CSF and West Yard warehouses. Cold patch is bid out annually due to the volatile pricing of the product. This contract will assure that operations will run smoothly and to replenish stock, by preventing emergency spot buys and possible work stoppage.
PROCUREMENT METHOD
This contract was procured through a Request for Bids (RFB) #523313 and was advertised on the Michigan Inter-Governmental Trade Network (MITN) website for 22 calendar days. MITN published this opportunity to 149 companies and 16 firms downloaded the bid package. Two bids were received.
The bids were evaluated and determined to be responsive and responsible bidders. Based on the information above, it is recommended that the contract be awarded to the lowest bidder, Ajax Paving.
Ajax Paving clearances expire 1/22/25, and a formal contract document is not required as the Standard Terms & Conditions apply.
SUMMARY
A. Contract No: 6006686
B. Contract Term: 11/1/24 - 10/31/25 (1 year)
C. Initial Contract Amount: $256,500.00
D. Anticipated FY Spend: FY 24-25: $171,000.00
FY 25-26: $ 85,500.00
E. Funding Source: O&M Funds
F. GL String: 5720-00000-000000-150100-000000-00000-0000-000000- 100% Water
This proposed contract was presented to the BOWC Finance Subcommittee on October 2, 2024. Per DWSD procurement protocol, no additional approvals are required.