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The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Contract 6005318 with Herc Rentals Inc. rental of one-ton pickup trucks, ½ ton pickup trucks, and one-ton cargo vans, utilizing the MiDeal Contract # 071B7700146 for a total contract not-to-exceed amount of $500,000.00 and a term of 6.5 months. 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 June 21, 2023
Item No.: 2023-136
Contract No.: 6005318
Contractor: Herc Rentals Inc., 29125 Smith Rd, Romulus, MI 48174
Contract Amount: $500,000.00
Contract Term: 6.5 months (7/1/23 - 1/15/24)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6005318
Rental of one-ton pickup trucks, ½ ton pickup trucks, and one-ton cargo vans
Herc Rentals 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 Contract 6005318 with Herc Rentals Inc. rental of one-ton pickup trucks, ½ ton pickup trucks, and one-ton cargo vans, utilizing the MiDeal Contract # 071B7700146 for a total contract not-to-exceed amount of $500,000.00 and a term of 6.5 months. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
DWSD Fleet Operations is requesting the rental of one-ton pickup trucks, ½ ton pickup trucks, and one-ton cargo vans. The rental of these vehicles will support 45 new hires- Field Service Technicians, that will join DWSD Maintenance and Repair Field Crews.
Due to automotive supply chain challenges, previously approved fleet purchases have been delayed and thus the division will need rental coverage so as to not impact operations.
In addition, the fleet division is working with the facilities and procurement divisions to implement an electric vehicle pilot program as an effort to grow the organization in a green initiative.
PROCUREMENT METHOD
The DWSD Procurement Policy allows for participation in cooperative purchasing agreements from other public purchasing consortiums of competitively solicited contracts. However, prior to utilizing a cooperative contract, the DWSD Procurement Policy requires Detroit Based Businesses (DBB) and Detroit
Resident Businesses (DRB) be provided an exclusive opportunity to submit a bid that is equal to or less than the price of the cooperative purchase agreement, provided the DBB or DRB will meet or exceed all terms and conditions of the cooperative agreement.
Due to the urgency of requisition #506885 submitted by Fleet Operations, approved on 5/31/23, time constraints would not allow for procurement to publish an Invitation to Respond (ITR) through the Michigan Intergovernmental Trade Network. Fleet Operations submitted an Exception to Competitive Solicitation (ECS) to the Director on 6/1/23. The ECS was approved by the Director on 6/2/23.
This rental agreement will be for 6 months, 15 days (7/1/23 - 1/15/24). The contract was procured through Requisition #506885, which was approved on 5/31/23. Contract 6005318 is being recommended to be awarded to the MiDeal Cooperative Contractor, Herc Rental Inc., per the pricing, terms, and conditions of MiDeal Cooperative Contract #071B7700146.
The Herc Rental Inc.’s clearances expire 5/22/24 and a formal contract document is not required.
SUMMARY:
A. Contract No. 6005318
B. Contract Term: 7/1/23 - 1/15/24
C. Contract Amount: $500,000.00
D. Funding Source: O&M Funds
E. GL String:
5720-20167-482422-617900-000209-10731-0000-000000 - 51% Water
5820-20178-492422-617900-000230-15956--0000-000000 - 49 % Sewer
Per DWSD’s Procurement Policy, this proposed contract was presented to the BOWC Finance Subcommittee on June 7, 2023. Per procurement protocol, no additional approvals are required.