Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6003663 with Inland Waters Pollution Control, Inc. for Large Sewer Improvements in Riverdale & Rosedale Park (Project DWS-932) for a total contract amount not-to-exceed $3,927,247.00 and a term of one year. This 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 August 18, 2021
Item No. 21-0561
Contract No. 6003663 (DWS-932)
Contractor: Inland Waters Pollution Control, Inc. (DBB)
Address: 4086 Michigan Avenue, Detroit, MI 48210
Contract Amount: $3,927,247.00
Contract Term: 365 Calendar Days (1 year) - Anticipated Start Date of September 24, 2021
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6003663 / Project No. DWS-932
Large Sewer Improvements in Riverdale & Rosedale Park
MOTION
Upon recommendation of Mamata Burgi, Operations Resource Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6003663 with Inland Waters Pollution Control, Inc. for Large Sewer Improvements in Riverdale & Rosedale Park (Project DWS-932) for a total contract amount not-to-exceed $3,927,247.00 and a term of one year. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
The existing DWSD sewer system within the City limits (approximately 3,000 miles of sewers ranging from 8” thru 180”) is generally older than 90 years. As a result of the sewers age, they are deteriorating at a faster rate. Some are near the point of collapsing, and immediate emergency action is often required. Sewer rehabilitation services are needed to repair plugged, damaged, and collapsed sewers to avoid basement flooding, and maintain the flows within the wastewater collection system.
Proposed Contract No. DWS-932 (Large Sewer Improvements in Riverdale and Rosedale Park Neighborhoods) is to provide in-place rehabilitation of selected sewers primarily using the procedures, methods and equipment of the large diameter spot repair processes. The work will take place in the Riverdale and Rosedale Park neighborhoods. The Capital Improvement Management Organization (CIPMO) team has performed a sewer condition assessment in these neighborhoods and presented a proposed scope of work for each intervention in the bidding documents.
DWSD will continue the rehabilitation of sewers to provide better services to citizens of Detroit and meet the needs of future City Development. The proposed lining processes will extend the life of a sewer by at least 50 years.
PROJECT OBJECTIVES / COSTS
The objective of the proposed Contract 6003663 (DWS-932) is the rehabilitation of large diameter sewers which will include man-entry walk through inspection, internal repairs, cleaning, and site restoration of the surface areas and existing structures after performing any necessary sewer work as specified in the Contract. Repairs and cleaning will include concrete repair, fracture/crack repair, joint repair, cleaning of roots or attached debris, and infiltration repairs. Quantities of large diameter sewer repairs are listed in the Contract Documents. Lining of approximately 2,862 Linear Feet of large diameter sewers will also be performed.
This is a State of Michigan State Revolving Fund (SRF) project; Federal requirements must be met for Disadvantaged Business Enterprises (DBE) and Davis-Bacon. With regard to DBE participation, prime contractors who bid on a SRF-funded projects and who intend to use subcontractors must demonstrate good-faith procurement outreach efforts for Disadvantaged Business Enterprises (DBE) during the bidding period, which involves soliciting at least three disadvantaged subcontractors per trade, and documenting these efforts in the DBE forms found in the SRF portion of the bid document specifications. The DBE forms and supporting documents were included in the successful bidder’s package in order to comply with SRF program requirements.
The contract costs are as follows:
Contract Price $4,268,725.00
Contaminated Material Allowance $20,000.00
Provisional Allowance for Unforeseen Conditions $430,000.00
Total Contract Price $4,718,725.00
PROCUREMENT METHOD
This procurement was competitively solicited through a Request for Bids (RFB) per Requisition 486276, which was fully approved on 3/3/21. The RFB was advertised on the Michigan Inter-Governmental Trade Network (MITN) BidNet website for 37 calendar days (5/19/21 - 6/25/21). MITN published this opportunity to 751 companies and 75 firms downloaded the bid package. In addition to posting on MITN, Procurement also sent email notices to approximately 90 firms.
Due to the change in specifications from the last time this was bid out, the Pre-Bid meeting held for RFB DWS-932 was mandatory and only bidders that attended were allowed to submit a bid as a Prime Contractor. All bids received were from vendors that attended the mandatory Pre-Bid meeting.
The Engineer’s Estimate for this work is $4,718,725.00.
Three (3) bids were received:
|
Bidder |
Bid Price |
Equalizations |
Equal Credits |
Equalized Total Bids |
|
Inland Waters |
$3,927,247.00 |
DBB - 1% |
($39,272.47) |
$3,887,974.53 |
|
Lanzo Construction |
$4,870,725.00 |
N/A |
$0.00 |
$4,870,725.00 |
|
Lakeshore Global |
$5,678,078.46 |
DBB - 1% |
($56,780.78) |
$5,621,297.68 |
Note: $530,000 of the total bid prices includes allowances for permits, contaminated materials and unforeseen conditions.
As the apparent low bidder, Procurement first reviewed the bid from Inland Waters. Inland submitted all required information and met all minimum requirements except for having an Experience Modification Rate (EMR) of 1.04 for the year 2020, which is above the requirement of 1.0 or below as listed in the RFB, which would disqualify them.
Therefore, Procurement reviewed Lanzo Construction’s bid next, followed by Lakeshore’s bid. Both bidders used subcontractors to meet the technical minimum qualifications, which is not allowed based on how the RFB was written, disqualifying both Lanzo and Lakeshore.
Because all three (3) vendors would be disqualified, DWSD Finance made the decision to waive the EMR requirement of 1.0 or below for Inland Waters, with Engineering’s consent, based on the following factors:
1. Engineering has confirmed that the bids received from Lanzo and Lakeshore do not meet a majority of the minimum requires as they are using subcontractors to meet the minimum qualifications required by the Prime as the RFB states that the “Bidder” (or Prime) must have the required experience.
2. Inland Waters Pollution Control is the incumbent on the current contract for these services and has performed satisfactorily with their current Experience Modification Rating (EMR) of 1.04. Inland is also a subcontractor on one or more other active DWSD contracts in which their performance is satisfactory to DWSD. In addition, Inland’s current EMR for 2021 is .99 which is a decrease from 2020 and in compliance with the 1.00 or less EMR requirement.
Note: The EMR is a metric that insurers use to calculate worker's compensation premiums; it takes into account the number of claims/injuries a company has had in the past and their corresponding costs, which is then compared against other firms in the industry.
3. Preserving the low bid delivers a savings value to DWSD.
Based on the information above, it is recommended that the contract be awarded to the lowest equalized responsive bidder, Inland Waters Pollution Control, Inc. Inland Waters clearances expire on 1/26/22.
SUMMARY
A. Contract No.: 6003663 (DWS-932)
B. Contractor: Inland Waters Pollution Control, Inc.
C. Contract Term: 365 days (1 year) - Anticipated start date 9/24/21
D. Contract Amount: $3,927,247.00
E. Fiscal Year (FY) Breakdown: FY 21-22: $2,945,435.25
FY 22-23: $ 981,811.75
F. Funding Source: Drinking Water State Revolving Funds comprised of:
77.5% Federal Funds
22.5% State Funds
G. GL String (Water): 5831-20310-497800-617900-900339-30129-0000-000000 - 100% Sewer
This contract was presented to the DWSD Finance Subcommittee on August 4, 2021. Per the DWSD procurement protocol, Mayoral review will also be obtained.