Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6006808 with Major Contracting Group, Inc./Gayanga Company Inc. (JV); for Hydrant and Repair of Water Mains (WS-745), for a total contract amount not-to-exceed $8,248,100.00 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 November 20, 2024
Item No.: 2024-231
Contract No. 6006808 (WS-745)
Contractor: Major Contracting Group, Inc./Gayanga Company (JV)
Address: 12222 Greenfield Road, Detroit MI 48217
Contract Amount: $8,248,100.00
Contract Term (Tentative): 3/1/25 - 2/29/28 (3 years)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6006808 (WS-745)
Hydrant and Repair of Water Mains
Major Contracting Group, Inc./Gayanga Company
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 6006808 with Major Contracting Group, Inc./Gayanga Company Inc. (JV); for Hydrant and Repair of Water Mains (WS-745), for a total contract amount not-to-exceed $8,248,100.00 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.
BACKGROUND / JUSTIFICATION
Twice a year, the Detroit Water and Sewerage Department (DWSD) experiences a peak in hydrant repairs due to fire hydrant inspections from the fire department. This contract’s primary purpose is to provide emergency as-needed repair for fire hydrants as well as repair of various-sized water mains during high peak season. Hydrants are essential for the fire department to access water quickly during emergencies. If a hydrant is out of service, it could severely delay firefighting efforts and jeopardize lives and property. Regular maintenance and repairs ensure that hydrants are not only functional but also accessible. A well-maintained hydrant system fosters public confidence in local government. Also, emergency services investing in the repair and maintenance of hydrants can prevent costly emergency responses and extensive damage in the event of a fire. This contract will also include as-needed services for various sized water mains.
The work primarily consists of the replacement of emergency replacement of fire hydrants. It also includes the emergency repairs and replacement of water mains, valves, stop boxes, road gate boxes, and other appurtenances including excavation backfilling, snow and ice removal, and salting down areas of the site.
Maintaining hydrant systems is crucial for public safety, infrastructure reliability, and community trust. Addressing these needs through regular maintenance not only complies with regulations but also supports the overall well-being of the community.
This proposed DWSD Contract for Project WS-745 is part of DWSD’s on-going maintenance work and will replace the existing Project WS-736 upon expiration.
PROJECT OBJECTIVES
The objective of the proposed Contract No. 6006808 consists of the following, throughout the City of Detroit, on an as-needed basis:
• Ensure all hydrants are fully operational and accessible for emergency response.
• Minimize fire hazards by replacing outdated or non-functional hydrants.
• Repair or replace aging water mains to prevent leaks, contamination, and pressure loss.
• Ensure consistent water quality and supply to all service areas.
• Reduce the frequency of water main breaks and hydrant failures through proactive replacement.
• Develop and implement a comprehensive construction schedule that minimizes impact on local residents and businesses.
PROCUREMENT METHOD
This procurement was competitively solicited through a Request for Bids (RFB) per Requisition 521732,
which was fully approved on 7/3/24. The RFB was advertised on the Michigan Inter-Governmental Trade
Network (MITN) BidNet website for 30 calendar days (8/30/24-9/30/24). MITN published this opportunity to 670 companies and 40 firms downloaded the bid package. In addition to posting on MITN, Procurement sent email notices to approximately 90 firms.
The Engineer’s Estimate for this work is $11,134,318.50.
Four bids were received:
|
Bidder |
Total Bid Price |
|
Equalization Applied |
Equalization Credit |
Equalization Bid Total |
|
Major Contracting Group / Gayanga Company (JV) |
$8,248,100.00 |
|
JV - 6% |
($494,886.00) |
$7,753,214.00 |
|
LGC Global, Inc. |
$8,767,213.01 |
|
DHB-1% |
($87,672.13) |
$8,679,540.88 |
|
Five Star Energy Services |
$9,730, 225.00 |
|
N/A |
N/A |
$9,730,225.00 |
|
Murphy Pipeline Contractors |
$21,357,250.00 |
|
N/A |
N/A |
$21,357,250.00 |
After the bids were reviewed, the lowest equalized bidder is the Major Contracting Group, Inc./Gayanga Company (JV).; their bid included all required information and was deemed responsive and responsible. Major Contracting Group, Inc./Gayanga Company is a Joint Venture. Therefore, it is recommended that the Major Contracting Group, Inc./Gayanga Company (JV) be awarded the contract resulting from the RFB for WS-745 in the amount of $8,248,100.00 and for a term of three years. The bid tab, responsiveness evaluation, equalization analysis, and bid was sent to the Construction and Engineering Division.
Major Contracting Group, Inc. clearances expire on 6/27/25 and Gayanga Company’s clearances expire on 2/12/25 respectively and the formal contract document has been sent to the vendor for review and signature.
SUMMARY
A. Contract No.: 6006808 (WS-745)
B. Contractor: Major Contracting Group, Inc./Gayanga Company (JV)
C. Contract Term (Tentative): 3/1/25 - 2/29/28 (3 years)
D. Contract Amount: $8,248,100.00
E. Anticipated FY Breakdown: FY 24-25: $ 1,000,000.00
FY 25-26: $ 3,000,000.00
FY 26-27: $ 3,000,000.00
FY 27-28: $ 1,248,100.00
F. Funding Source: CIP Funds
G. GL String: 5721-20244-487711-617900-900401-30129-0000-000000 - 100% Water
Per DWSD procurement protocol, Mayoral Review and City Council approvals will also be obtained.