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The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6005503 (WS-733) with Murphy Pipeline Contractors, Inc. for Water System Improvements, including Lead Service Line replacement, in Various Streets, east of Livernois in the City of Detroit, for a total contract amount not-to-exceed $14,446,864.00 (100% reimbursable by ARPA funding) and a term of 2 years. 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 19, 2023
Item No. 2023-169
Contract No. 6005503 / WS-733
Contractor: Murphy Pipeline Contractors, 12235 New Berlin Road, Jacksonville, Florida 32226
Contract Amount: $14,446,864.00
Contract Term: 11/1/23 - 10/31/25 (2 years)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract 6005503 / WS-733
“Water System Improvements in Various Streets, East of Livernois in the City of Detroit”
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 6005503 (WS-733) with Murphy Pipeline Contractors, Inc. for Water System Improvements, including Lead Service Line replacement in Various Streets, east of Livernois in the City of Detroit, for a total contract amount not-to-exceed $14,446,864.00 (100% reimbursable by ARPA funding) and a term of 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-733 is part of an ongoing distribution piping system water main replacement program. The work consists of replacing existing 8-inch, and 12-inch, diameter water mains at selected locations in Detroit that have a history of frequent breaks and high maintenance cost. Lead services forecasted for replacement are 442 and represent 17 percent of the contractor’s bid. The aggregate forecasted length of Lead services being replaced with copper within the public ROW is 9,155 linear feet and 3,052 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 old 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 (Pb) water services are being replaced from the new water main all the way to the customer meter.
Proposed Contract 6005503, for Project WS-733, will continue the rehabilitation of the water main to provide better services to the citizens of Detroit and meet the needs of future City Development.
PROJECT OBJECTIVES / COSTS
The objective of the proposed Project WS-733 is to replace existing 6-inch through 12-inch water mains that have a history of leaks and breaks with approximately 29,153 linear feet of 8-inch 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. Finally, whether the pipe is a new DI pipe or HDPE pipe, all the work includes the replacement of all fittings, valves, and hydrants. 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 442 and it represents 17 percent of the contractor’s bid. The aggregate forecasted length of Lead services being replaced with copper within the public ROW is 9,155 linear feet and 3,052 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.
This is a 100% ARP grant funded project routed through Drinking Water State Revolving Fund (DWSRF) process and therefore, Federal requirements must be met for Disadvantaged Business Enterprises (DBE), and Davis-Bacon. With regard to DBE participation, prime contractors who bid on a DWSRF-funded water main projects and who intend to use subcontractors must demonstrate good-faith procurement outreach efforts for Disadvantaged Business Enterprises (DBE) during the bidding period, which involves soliciting at least three disadvantaged subcontractors per trade, and documenting these efforts in the DBE forms found in the DWSRF portion of the bid document specifications. The DBE forms and supporting documents were included in the successful bidder’s package in order to comply with DWSRF program requirements.
PROCUREMENT METHOD
This procurement was competitively solicited through a Request for Bids per Requisition 507672, which was fully approved on 5/31/23. The RFB was advertised on the Michigan Inter-Governmental Trade Network (MITN) BidNet website for 28 calendar days (6/2/23 - 6/30/23). MITN published this opportunity to 950 companies and 67 firms downloaded the bid package.
The Engineer’s Estimate for this project is $15,917,483.59. Four (4) bids were received:
Bidder Total Bid Equal. Applied Equal. Credit Equal. Bid Total
Price *(N/A) *(N/A) *(N/A)
Murphy Pipeline Contractors $14,446,864.00 N/A N/A $14,446,864.00
LGC Global $15,358,008.50 DBB ($153,580.09) $15,204,428.41
Major Contracting Group $15,793,678.00 DBB ($157,936.78) $15,635,741.22
Bidigare Contractors $18,556,238.00 N/A N/A $18,556,238.00
The evaluation of the bids is based on the lowest bid price. As the apparent equalized low bidder, Murphy Pipeline Contractors was evaluated and determined to be responsive. The bid tab, responsiveness evaluation, equalization analysis, and the four (4) bids were forwarded to the Engineering Division. Therefore, it is recommended that Murphy Pipeline Contractors be awarded the contract resulting from RFB 507672 for WS-733 in the amount of $14,446,864.00.
*No equalization credits were included in the publication for bids or factored as a methodology for evaluating bid responses.
Murphy Pipeline Contractors submitted an application for clearances on 6/28/23 and the formal contract document has been sent to Murphy Pipeline Contractors for review and signature.
SUMMARY
A. Contract No.: 6005503 / WS-733
B. Contractor: Murphy Pipeline Contractors
C. Contract Term: 11/1/23 - 10/31/25 (2 years)
D. Contract Amount: $14,446,864.00
E. Anticipated FY Breakdown: FY 23-24: $4,946,864.00
FY 24-25: $5,000,000.00
FY 25-26: $4,500,000.00
F. Funding Source: I&E Funds, with 100% of the funds reimbursable through the
Federal American Rescue Plan Act (ARPA) Funds
G. GL String: 5721-20244-487711-617900-900362-30129-0000-000000
- 100% Water
This proposed contract (Capital Improvement Program (CIP) funded project) was presented to the BOWC Finance Subcommittee on July 10, 2023. Per DWSD procurement protocol, Mayoral Review will also be obtained.