Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6005050 with Five Star Energy Services for Full Lead Service Line Replacements at Various Locations Throughout Detroit (Project WS-735), for a total contract amount not-to-exceed $25,000,000 (reimbursable by ARPA) and a term of three years. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of February 15, 2023
Item No. 2023-27
Contract No. 6005050 (WS-735)
Contractor: Five Star Energy Services, Inc.
Address: West 228th St 7055 Enterprise Dr, Suite 2, Big Bend, WI 53103
Contract Amount: $25,000,000
Contract Term: 1,095 calendar days (3 years) - to begin ASAP
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6005050 / Project No. WS-735
Full Lead Service Line Replacements at Various Locations Throughout Detroit
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 6005050 with Five Star Energy Services for Full Lead Service Line Replacements at Various Locations Throughout Detroit (Project WS-735), for a total contract amount not-to-exceed $25,000,000 (reimbursable by ARPA) and a term of three years.
BACKGROUND / JUSTIFICATION
Detroit has an estimated 80,000 lead service lines (LSLs), connected to an aged and historically under-maintained water network, with high incidences of water main breaks. Main breaks and service leaks frequently affect LSLs and require disconnecting the LSL to make a repair. As part of the DWSD Capital Improvement Program (CIP) for the replacement of water mains, lead service lines are converted to new copper service lines along with the provision of water filters and pitchers to the customer for the benefits the public health and safety. Given the potential negative health impacts due to Lead service lines to water system customers, DWSD has been undertaking efforts in the replacement of these services. In addition to the replacement of LSLs along with water main replacement work, DWSD is undertaking dedicated LSL replacement from the existing water main to the customer meter without water main replacement.
Per EPA and MI-EGLE requirements, Lead services are to be replaced from the water main all the way to the customer meter within their property (residence, commercial space, other). Normally, Lead replacements are integrated into water main replacement capital work, but not all water mains can be replaced over the next handful of years to capture all of the outstanding Lead services. Under Contract WS-735, DWSD proposes to develop a dedicated Lead water service replacement project whose scope does not have the necessity of a full water main replacement. Through this contract, up to 2,500 Lead services will be replaced over three years with a combination of excavation and directional boring.
The work consists of replacing Lead water services of up to two-inches in diameter with copper services and road/curb boxes at up to 2,500 locations throughout the City of Detroit. These locations are not known at this time and services will be located through hydroexcavation work by the contractor as part of the project scope. The space near the shutoff box at the sidewalk will be excavated to the depth of the existing water service and visual confirmation made of Lead or copper in place. If a copper service is found, then the site will be backfilled and restored at cost; if Lead, then the contractor will coordinate replacement. Also, other locations of LSL work may be assigned to the Contractor identified by the Engineer and assigned to the Contractor on an “as-needed” basis pursuant to the terms and conditions of the Contract Documents.
There is no guarantee as to the number of replacement locations that will be assigned. However, about 2,500 Lead service line replacements are expected to be assigned throughout the life of this Contract. And no design drawings will be provided by DWSD. The contractor will be responsible for following the DWSD Full Lead Service Line Replacement (FLSLR) Standard Operating Procedures (SOPs) and Lead Water Services specification to efficiently, effectively, and safely remove and replace LSLs.
This project is underwritten with monies from the Federal American Rescue Plan Act (ARPA).
PROJECT OBJECTIVES / COSTS
The work is to be completed within 1,095 days. The full-service line replacement involves replacing the existing Lead service with new copper service line, installing new curb stop and curb box, and restoration of all lawn/pavement disturbed by the individual site work. The pay item description shall be as follows:
a. The costs of materials, labor, equipment, and all other incidental materials necessary for the removal and replacement of Lead water services lines on the private side from the curb stop to the water meter, including coordination with customer, saw cutting, pavement removal, driveway removal, sidewalk removal, curb removal, excavation, excavation support, dewatering excavation, hauling, disposal, bedding, provision of clean backfill, compaction, copper services, wax tape, and all attendant water service installation items required per the Specifications shall be included in the cost of the pay item.
b. Restoration for full reinstatement of all items including, but not limited to, aggregate base, concrete base, paving, curb, sidewalk, seeding, and sod will be paid for as a per-service arrangement.
c. Installation of water service from the existing water main, through the curb stop, and onward to the property water meter will include the furnishing, installation, and connection of a new curb stop, road box, and all other appurtenances.
d. Lead service line replacement at each property will include the coordination between the Contractor and the DWSD Lead Service Team. Contractor to coordinate with Lead Service Team for interaction and communication with residents, delivery of notices to residents, and all other requirements as found in the Specifications for Lead Service Line Replacement and will be included in the cost of this item.
The contract costs are as follows:
|
Contract Price |
$ 23,652,600 |
|
Provisional Allowance for Unforeseen Conditions |
$ 1,000,000 |
|
Contaminated Materials Allowance |
$ 50,000 |
|
Remaining Balance of ARPA Funding Received |
$ 297,400 |
|
Total Contract Price |
$ 25,000,000 |
PROCUREMENT METHOD
This procurement was competitively solicited through a Request for Bids (RFB) per Requisition 502647, which was fully approved on 11/21/22. The RFB was advertised on the Michigan Inter-Governmental Trade Network (MITN) BidNet website for 50 calendar days (11/22/22 - 1/11/23). MITN published this opportunity to 1,408 companies and 94 firms downloaded the bid package. In addition to posting on MITN, Procurement sent email notices to approximately 90 firms. Additional vendor outreach was performed by DWSD staff in an attempt to connect with firms that have not done business with DWSD in the past in an effort to expand the DWSD vendor pool.
The Engineer’s Estimate for this work is $25,000,000, which is the amount DWSD received in ARPA funding to replace lead service lines in Detroit.
Six bids were received:
|
Bidder |
Total Bid Price |
Equal. Applied |
Equal. Credit |
Equal. Bid Total |
|
Five Star Energy Services |
$24,702,600 |
N/A |
N/A |
$24,702,600 |
|
Major Contracting |
$29,970,500 |
DBB - 1% |
($299,705) |
$29,670,795 |
|
Bidigare Contractors |
$36,199,850 |
N/A |
N/A |
$36,199,850 |
|
Lakeshore Global Corp. |
$36,999,000 |
DBB - 1% |
($369,990) |
$36,629,010 |
|
GDI Services |
$39,482,813 |
N/A |
N/A |
$39,482,813 |
|
Metro Pipe & Drain |
$67,903,400 |
N/A |
N/A |
$67,903,400 |
As the apparent equalized low bidder, Five Star Energy Services, Inc.’s bid was evaluated first. Five Star’s bid included all required information and was deemed responsive and responsible. Therefore, it is recommended that Five Star Energy Services, Inc. be awarded the contract resulting from the RFB for WS-735 in the amount of $25,000,000 and for a term of three years. The bid tab, responsiveness evaluation, equalization analysis, and the six bids were sent to the Construction and Engineering Division.
Five Star’s clearances expire on 12/12/23 and the formal contract document has been sent to Five Star for review and signature.
SUMMARY
A. Contract No.: 6005050 (WS-735)
B. Contractor: Five Star Energy Services, Inc.
C. Contract Term: 1,095 days (3 years) - to begin ASAP
D. Contract Amount: $24,702,600
E. Anticipated FY Breakdown: FY 22-23: $5,000,000
FY 23-24: $10,000,000
FY 24-25: $10,000,000
F. Funding Source: I&E Funds, with 100% of the funds reimbursable through the
Federal American Rescue Plan Act (ARPA) Funds
G. GL String: 5721-20244-487711-617900-900355-30129-0000-000000
- 100% Water
This proposed amendment was presented to the BOWC Finance Subcommittee on February 1, 2023. Per DWSD procurement protocol, Mayoral Review will also be obtained.