Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6004359 with Lakeshore Global Corporation for Full Lead Service Line Replacement at Various Locations Throughout the City (Project WS-721), for a total contract amount not-to-exceed $10,000,000 which will utilize a Drink Water State Revolving Funds Grant from the State of Michigan and a term of two 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 April 20, 2022
Item No. 22-0771
Contract No. 6004359 (WS-721)
Contractor: Lakeshore Global Corporation (DBB)
Address: 7310 Woodward, Suite 500, Detroit, MI 48202
Contract Amount: $10,000,000 (DWSRF Funds)
Contract Term: 730 calendar days (2 years) - Anticipated Start Date of July 5, 2022
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6004359 / Project No. WS-721
Water Main Repairs (As Needed)
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 6004359 with Lakeshore Global Corporation for Full Lead Service Line Replacement at Various Locations Throughout the City (Project WS-721), for a total contract amount not-to-exceed $10,000,000 which will utilize a Drinking Water State Revolving Funds Grant from the State of Michigan and a contract term of two years. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
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 (Pb) 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 line to water system customers, DWSD has been undertaking efforts in the replacement of these services as the presence of Lead in drinking water is a public health threat. 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 the outstanding Lead services. Under Contract WS-721, 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 fifteen hundred (1500) Lead services will be replaced across two 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 fifteen hundred (1500) locations throughout the City of Detroit.
The locations of the replacements that will be assigned to the Contractor will be identified by the Engineer 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 under this Contract. However, about 1500 lead service line replacements are expected to be assigned throughout the life of this Contract.
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.
PROJECT OBJECTIVES / COSTS
The anticipated estimated construction cost is $10,000,000. The work is to be completed within 730 days. The full-service line replacement replacing 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, clean backfill, compaction, copper services, and all water service installation items required for install 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 and all 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 water service line replacement and will be included in the cost of this item.
PROCUREMENT METHOD
Requisition 493516 was approved on 12/6/21. The RFB was advertised on the Michigan Inter-Governmental Trade Network (MITN) BidNet website for 33 calendar days (12/23/21 - 1/25/22). MITN published this opportunity to 719 firms and 67 firms downloaded the bid package. In addition to posting on MITN, Procurement also sent email notices to approximately 90 firm. The Engineer’s estimate for this work is $11,000,000.
Four bids were received:
|
Bidder |
Bid Total |
Equalizations |
Equalization Credits |
Equalized Bid Total |
|
Lakeshore Global Corp. |
$17,445,000.00 |
DBB - 1% |
($174,450.00) |
$17,270,550.00 |
|
Inner City Contracting |
$17,568,948.67 |
DBB - 1% |
($175,689.49) |
$17,393,259.18 |
|
Major Contracting Group |
$18,740,000.00 |
DBB - 1% |
($175,689.49) |
$18,552,600.00 |
|
Mid-City Corporation |
$22,938,000.00 |
N/A |
N/A |
$22,938,000.00 |
Evaluation of Bids
As the apparent equalized low bidder, Lakeshore Global Corporation was evaluated and determined to be responsive. The bid tab, responsiveness evaluation, equalization analysis, and the four (4) bids were emailed to the Business Unit for review.
DWSD received a grant from the State in the amount of $10,000,000 for WS-721, but the bids came in much higher than anticipated. Therefore, DWSD will be awarding the contract with a total contract amount of $10,000,000, to be in line with the funding received from the State of Michigan. Lakeshore Global Corporation has agreed in writing that they understand and agree to the reduced total contract amount. The RFB scope of work stated that the work included up to 1,500 lead service line replacements and the bid pricing was provided in per unit increments.
Therefore, DWSD Procurement and the Engineering and Construction Department recommend that Lakeshore Global Corporation be awarded the contract resulting from RFB for WS-721 in the amount of $10,000,000 for term of 2 years.
Lakeshore’s clearances expire in 12/10/22 2022 and the formal contract document is routing for signatures.
SUMMARY
A. Contract No.: 6004359 (WS-721)
B. Contractor: Lakeshore Global Corporation
C. Contract Term: 730 days (2 years) - Anticipated start date of July 5, 2022
D. Contract Amount: $10,000,000
E. Anticipated FY Breakdown: FY 22-23: $4,800,000.00
FY 23-24: $4,800,000
FY 24-25: $400,000
F. Funding Source: Drinking Water State Revolving Fund (DWSRF)
G. GL String: 5721-20244-487711-617900-900349-30129-0000-000000 - 100% Water
This proposed amendment was presented to the BOWC Finance Subcommittee on April 6, 2022. Per DWSD procurement protocol, Post FRC Mayoral Review will be obtained.