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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 No. 6003376 (CS-1964) with Loadspring Solutions, Inc., for Primavera Project Management Software; by adding $150,000.00, for an amended total contract amount not-to-exceed $315,000.00 and extending the term 5 years for a new term ending 6/30/29. 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 July 17, 2024
Item No. 2024-129
Proposed Amendment No. 1
Contract No.: 6003376 (CS-1964)
Contractor: Loadspring Solutions, Inc.
Address: 1500 District Ave., Burlington, MA 01803
Initial Contract Amount: $165,000.00
Proposed Amendment No. 1 Amount: $150,000.00
Proposed New Total Contract Amount: $315,00.00
Initial Contract Term: 7/1/21 - 6/30/24
Proposed Amendment No. 1 Extension: 7/1/24 - 6/30/29
Proposed New Contract Term: 7/1/21 - 6/30/29
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Proposed Amendment No. 1 to Contract No. 6003376 (CS-1964)
To add funds and time to the contract for Primavera Project Management Software
Loadspring Solutions, 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 No. 6003376 (CS-1964) with Loadspring Solutions, Inc., for Primavera Project Management Software; by adding $150,000.00, for an amended total contract amount not-to-exceed $315,000.00 and extending the term 5 years for a new term ending 6/30/29. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND & JUSTIFICATION
In July 2017, DWSD awarded the CIPMO contract 6000777 (Project# CS-1812) to AECOM after completing the competitive qualification-based RFP process for a five-year period. All the programmatic components that comprise a capital delivery Program Management Office (PMO) were specified within the scope of work.
As of July 2020, all the software components that were initially set up under the CIPMO (CS-1812) project are operational, functioning to plan; and DWSD is executing contracts to rehabilitate infrastructure and effectively improve service levels to Detroit residents. Effective July 2021, which is year 4 of the CIPMO contract, DWSD needs to transition to take direct ownership of the license agreements for CityWorks, E-Builder, Innovyze and Primavera as specified in the contract. These software license costs would then be removed from the CS-1812 contract.
AECOM and DWSD negotiated price points for these four software vendors that is beneficial to DWSD to retain, and all parties are in agreement to transfer the active software agreement to DWSD with no additional fees. When the balance of the 5-year term expires for CS-1812, DWSD will either seek BOWC approvals for amendments or replacement contracts.
Primavera is a proprietary software package designed and sold exclusively by Loadspring. Primavera provides DWSD with an enterprise project portfolio management software. Primavera P6 is the standard project management software tool used worldwide in industries such as Construction, Water Utilities, Oil & Gas, Manufacturing, Energy and IT. While there are lots of project management tools on the market, Primavera P6 has been demonstrated in being able to manage large and complex projects. The software includes project management, scheduling, risk analysis, opportunity management, resource management, collaboration and control capabilities, and integrates with our enterprise software such as Oracle and SAP’s ERP systems.
The Oracle Primavera P6 software package was acquired as a single source contract under CIPMO contract with Loadspring, including all Suite versions, Viewers, updates, upgrades and Annual Maintenance. DWSD is taking over the current contract that AECOM has, which secured the software licenses directly from the Original Software Manufacturer. The software license agreement gives DWSD, the licensee a non-exclusive, non-transferable right to use software.
Proposed Amendment #1 is for the continuation of services and includes annual costs, maintenance releases, technical support and software updates.
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PROCUREMENT METHOD
The DWSD IT Department submitted requisition #486981, that was approved on 4/16/21, requesting a novation to commit to taking over the CIPMO contract with Loadspring Solutions, Inc., for three (3) years for a not-to-exceed amount of $165,000. The contract was requested as a single source, with an approved Exception to Competitive Solicitation, due to Primavera being the proprietary software package designed and sold exclusively by Loadspring vendor. The Exception to Competitive Solicitation Form was approved on May 24, 2021, by Director Gary Brown. The Contract was also approved by the Mayor on June 16, 2021.
Proposed Amendment 1 was submitted through requisition #521240, which was approved by Budget on 5/30/24. This Amendment requests to extend time through 6/30/29 (5 years) and adding $150,000.00 in funding. There will be no change in scope or terms and conditions.
Loadspring has applied for clearances, and they are pending approval. A formal amended contract document will be sent to the vendor for signature once clearances have been approved.
SUMMARY
A. Contract No.: 6003376 (CS-1964)
B. Initial Contract Amount: $165,000.00
C. Proposed Amendment No. 1 Amount: $150,000.00
D. Proposed New Total Contract Amount: $315,000.00
E. Initial Contract Term: 7/1/21 - 6/30/24 (3 years)
F. Proposed Amendment No. 1 Extension: 7/1/24 - 6/30/29 (5 years)
G. Proposed New Contract Term: 7/1/21 - 6/30/29
H. Funding Source: O&M Funds
I. GL String(s):
5720-20168-483301-622302-000205-10790-0000-000000 - 38.2% Water
5820-20179-493301-622302-000226-15805-0000-000000 - 61.8 % Sewer
J. Projected Fiscal Year (FY) Contract Expenditures:
FY 24/25: $30,000.00
FY 24/25: $30,000.00
FY 24/25: $30,000.00
FY 24/25: $30,000.00
FY 24/25: $30,000.00
This proposed amendment was presented to the DWSD Finance Sub Committee on July 8, 2024. Per the DWSD Procurement Policy, this will also be sent for Mayoral review and approval.