Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Amendment No.1 for DWSD Contract 6003270 with KONE Inc., to add $111,950.00 to continue providing for preventative maintenance, service and repairs for all DWSD elevators, for a total amended not-to-exceed cost of $511,950.00. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of October 19, 2022
Item No. 22-0935
Proposed Amendment No. 1
Contract No.: 6003270
Contractor: Kone Inc., 11864 Belden Court, Livonia, MI 48150
Current Contract Amount: $400,000.00
Proposed Amendment No. 1 Amount: $111,950.00
Proposed New Total Contract Amount: $511,950.00
Contract Term: 3/1/21 - 11/30/24
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed Amendment No. 1 to Contract 6003270
Preventative Maintenance, Services and Repairs for DWSD Elevators
Kone 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 Amendment No. 1 for DWSD Contract 6003270 with KONE Inc., to add $111,950.00 to continue providing preventative maintenance, service and repairs for, a total amended not-to-exceed cost of $511,950.00. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
Under the proposed amendment, the additional funding will be used for repairs to the administrative elevator at CSF. The contract with Kone Inc. will continue to provide preventative maintenance, along with as-needed parts, service, and repairs for Facility Operations.
The DWSD Facility Operations Department manages the repair and maintenance for all DWSD facilities. DWSD’s facilities have a total of twelve (12) elevators for daily operations:
• 6 Passenger and 1 Auto Freight Elevator at MOB
• 5 Hydraulic Elevators at CSF
Elevators bear the responsibility of transporting employees, visitors, vehicles, and material throughout the building. This maintenance contract assists the Facilities Department in getting preventative maintenance and repairs done in a timely manner when units fail or are damaged by accidents.
PROCUREMENT METHOD
The DWSD Procurement Policy allows for participation in Cooperative Purchasing Agreements from other public purchasing consortiums or competitively solicited contracts. OMNIA through the City of Kansas City, MO issued a Request for Proposal for elevator preventative maintenance, service and repairs and awarded based on the highest ranked proposal. The cooperative OMNIA Contract No. EV2516 is good through November 30, 2024, with the option to renew for five (5) additional one-year terms.
The DWSD Procurement Policy requires that Detroit Based Business (DBB) and Detroit Resident Business (DRB) be provided an exclusive opportunity to submit a bid that is equal to or less than the cost of the cooperative purchase price, provided the DBB or DRB will meet or exceed all terms and conditions of the original cooperative contract.
To ensure compliance, DWSD Procurement issued an Invitation to Respond (ITR) #483935 on MITN, on November 30, 2020, which required an intent to respond due on December 7, 2020, and closed December 16, 2020. The ITR opportunity was submitted to 107 companies subscribing to the relevant NIGP codes(s). The ITR as viewed by 10 companies yielded two intents to bid and only one bid was submitted by ThyssenKrupp who is not a DBB or DRB and did not qualify per the policy.
This proposed Amendment No. 1 was initiated through requisition #500366 and approved by DWSD Budget on 9/1/22. The additional funding will be used for repairs to the administrative elevator at CSF.
KONE Inc. clearances are expired; they will submit a renewal request. Per DWSD procurement protocol, no additional approvals are required.
SUMMARY
A. Contract No.: 6003270
B. Initial Contract Amount: $400,000.00
C. Proposed Amendment No. 1 Amount: $111,950.00
D. Proposed New Total Contract Amount: $511,950.00
E. Contract Term: 3/1/21 - 11/30/24
F. Funding Source: O&M Funds
G. GL String(s):
5721-20244-487711-622900-004104-30129-0000-000000 - 47.1% Water
5821-20243-497711-622900-004105-30129-0000-000000 - 52.9 % Sewer
H. Projected Fiscal Year (FY) Contract Expenditures:
FY 22-23 $236,950.00
FY 23-24 $100,000.00
This proposed amendment was presented to the DWSD Finance Committee on October 5, 2022. Per DWSD procurement protocol, no additional approvals will be obtained.