Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6003610 with Major Cement Co. for Water System Improvements at Jefferson-Chalmers (Project WS-713) for a total contract amount not-to-exceed $12,336,544.30 and a term of two (2) 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
Item No. 21-0499
Contract No. 6003610 (WS-713)
Contractor: Major Cement Co. (DBB)
Address: 15347 Dale, Detroit, MI 48219
Contract Amount: $12,336,544.30
Contract Term: 730 Calendar Days (2 years) - Anticipated Start Date of October 4, 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. 6003610 / Project No. WS-713
Water System Improvements Jefferson-Chalmers
MOTION
Upon recommendation of Mamata Burgi, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6003610 with Major Cement Co. for Water System Improvements at Jefferson-Chalmers (Project WS-713) for a total contract amount not-to-exceed $12,336,544.30 and a term of two (2)years. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
DWSD Project No. WS-713 is part of an ongoing distribution piping system water main replacement program. The work consists of rehabilitating existing piping by lining select lengths of existing 8-inch water main and replacing existing 6-inch, 8-inch, and 12-inch diameter water mains at selected locations in the Jefferson-Chalmers neighborhood that have a history of frequent breaks and high maintenance cost. Lead (Pb) services forecasted for replacement are 655 across the project and represents 15.4 percent of the contractor’s bid. The aggregate forecasted length of Lead services being replaced with copper within the public ROW is 21,248 linear feet and 17,535 linear feet on private properties. Additionally, Lead services of one inch and less in diameter are replaced with one-inch copper tube; existing Lead services of 1.5-inches and 2-inches diameter are replaced with copper tube of the same diameter.
This water main replacement contract is one of a continuing series of contracts that replace the water mains in the City of Detroit having an extensive history of leaks and breaks. The new water mains and associated infrastructure will enhance the integrity of the DWSD Water System and ensure quality service to its customers. To protect the health and safety of our customers, existing Lead water services are being replaced from the new water main all the way to the customer meter.
Proposed Contract 6003610 for Project WS-713, will continue the rehabilitation of water main to provide better services to citizens of Detroit and meet the needs of future City Development.
PROJECT OBJECTIVES / COSTS
The objective of the proposed Project WS-713 is to replace existing six through twelve-inch water mains that have a history of leaks and breaks with approximately 32,072 linear feet of 8-inch and 3,155 linear feet of 12-inch water main as a combination of new ductile iron water main placed by trenching/open cut and High Density Polyethylene (HDPE) piping placed through Horizontal Directional Drilling (HDD) and pipe bursting. The work also includes rehabilitating 1,442 linear feet of the existing water main by placement of an epoxy bonded liner along the interior of the existing pipe. Whether the pipe is new DI pipe, HDPE pipe, or existing pipe rehabilitated through lining, the work includes replacement of all fittings, valves, and hydrants. In the case of directional drilling and pipe bursting where the original metal pipe will be replaced with HDPE pipe, a new electrical grounding system will be placed at the customer property. Finally, existing Lead water services will be replaced with copper from the water main to the customer meter. The number of Lead services forecasted for replacement through this project is 655 and it represents 15.4 percent of the contractor’s bid. The aggregate forecasted length of Lead services being replaced with copper within the public ROW is 21,248 linear feet and 17,535 linear feet on private properties. Should additional Lead services be encountered over the course of the work, they shall also be replaced at the rates established in the Bid Schedule.
PROCUREMENT METHOD
This contract was competitively solicited through a Request for Bids (RFB) per Requisition 486324, which was approved on 2/8/21. The RFB and was advertised on the Michigan Inter-Governmental Trade Network (MITN) website for 41 calendar days (3/25/21 - 5/5/21). MITN published this opportunity to 1,441 companies and 138 firms downloaded the bid package. In addition to posting on MITN, Procurement also sent email notices to approximately 90 firms.
The Engineer’s Estimate for this work is $14,000,000.
Three (3) bids were received:
|
BIDDER |
BID PRICE |
EQUALIZATIONS |
EQUALIZED PRICE |
|
Major Cement Co. |
$12,336,544.30 |
DBB - 1% |
$12,213,178.86 |
|
Lakeshore Global Corp |
$13,990,261.16 |
DBB - 1% |
$13,850,358.55 |
|
Bidigare Contractors, Inc. |
$15,489,120.00 |
N/A |
$15,489,120.00 |
Note: $1,000,000 of the total bid prices includes provisional allowances for unforeseen conditions.
Based on the information above, it is recommended that the contract be awarded to the lowest equalized responsive bidder, Major Cement Co. Major Cement’s clearances expire on 1/8/22.
SUMMARY
A. Contract No.: 6003610 (WS-713)
B. Contractor: Major Cement
C. Contract Term: 730 days (2 years) anticipated start date of October 4, 2021
D. Contract Amount: $12,336,544.30
E. Fiscal Year (FY) Breakdown: FY1: $4,000,000.00
FY2: $6,000,000.00
FY3: $2,336,544.30
F. Funding Source: CIP Funds
G. GL String (Water): 5740-20334-487801-617900-900340-30129-0000-000000
Contract No. WS-713 was presented to the Finance Committee on June 2, 2021. Per the DWSD procurement protocol, Mayoral review and City Council approval will also be obtained.