Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Contract 6006725 with AIS Construction Equipment Corporation, for as-needed John Deere Equipment repair services, parts and preventative maintenance, for a total contract amount not-to-exceed $750,000.00 and a term of five (5) 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.: 2024-220
Contract No.: 6006725
Contractor: AIS Construction Equipment Corporation, 56555 Pontiac Trail. New Hudson, MI 48165 Contract Amount: $750,000.00
Contract Term: 11/21/24 - 11/20/29
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6006725
As-needed John Deere Equipment Parts, Maintenance, and Repair Services
AIS Construction Equipment 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 Contract 6006725 with AIS Construction Equipment Corporation, for as-needed John Deere Equipment repair services, parts and preventative maintenance, for a total contract amount not-to-exceed $750,000.00 and a term of five (5) 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 Fleet Division is responsible for ensuring all DWSD owned and operated John Deere equipment, is maintained and operational for safe use. This requires that parts be replaced regularly, maintenance and repair services are timely, to keep all equipment in good working condition.
This contract will serve to support DWSD Fleet Operations Division by providing routine and warranty maintenance, as well as parts for service work completed in-house.
PROCUREMENT METHOD - SOLE SOURCE
Requisition #526046 was submitted and approved by Budget on 9/27/24. In accordance with Section 7.5.11 of the DWSD Procurement Policy, competitive solicitation is not required for a sole source purchase. AIS Construction Equipment Corporation has provided a current sole source letter, confirming that they are the only firm that can provide equipment parts, preventive maintenance, and repair service for DWSD’s John Deere construction and heavy-duty equipment.
Based on the information above, DWSD Procurement recommends the Contract be awarded to AIS Construction Equipment Corporation with a total Contract not-to-exceed amount of $750,000.00.
AIS Construction Equipment Company’s clearances expire 6/17/25 and a formal contract document is not required.
SUMMARY:
A. Contract No. 6006725
B. Contract Term: 11/21/24 - 11/20/29
C. Contract Amount: $750,000.00
D. Projected Fiscal Year Expenditures:
FY24/25- $150,000.00
FY25/26- $150,000.00
FY26/27- $150,000.00
FY27/28- $150.000.00
FY28/29- $150,000.00
E. Funding Source: O&M Funds
F. GL String:
5720-20167-482422-617900-000209-10731-0000-000000 - 50.5% Water
5820-20178-492422-617900-000230-15956-0000-000000 - 49.5% Sewer
Per the DWSD Procurement Policy, Mayoral Review approval will also be obtained.
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