Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Amendment #1 for DWSD Contract No. 6005048 for Various Brass Items, with Melmac Co., Inc. d/b/a Motor City Pipe & Supply Co. by adding additional funding in the amount of $124,288.50 for a total amended contract not-to-exceed amount of $241,645.50 and a term of two years. The BOWC also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of August 16, 2023
Item No.: 2023-178
Contract No.: 6005048
Contractor: Melmac Co., Inc. d/b/a Motor City Pipe & Supply Co. (DBB)
Address: 12389 Schaefer Hwy., Detroit, MI 48227
Initial Contract Amount: $117,357.00
Addendum #1: $124,288.50
New Contract Amount: $241,645.50
Contact Term: 4/1/23-3/31/25 (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 6005048
Various Brass Items
Melmac Co., Inc. d/b/a Motor City Pipe & Supply Co.
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 Amendment #1 for DWSD Contract No. 6005048 for Various Brass Items, with Melmac Co., Inc. d/b/a Motor City Pipe & Supply Co. by adding additional funding in the amount of $124,288.50 for a total amended contract not-to-exceed amount of $241,645.50 and a term of two years. The BOWC also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
The DWSD Warehouses stock various brass parts. Brass parts are used for water service connections for distribution mains, service lines and meters. This contract will serve to replenish stock levels preventing emergency spot buys and possible work stoppage.
Additional funding is needed to supply eight (8) line items for this contract. The previously awarded supplier, Decima-6005049, has been nonresponsive on purchase orders issued against their Blank Purchase Agreement. Procurement confirmed with Motor City Pipe & Supply Co if they would honor original bid pricing for the remaining 8-line items, for the duration of this contract and they have agreed in writing.
PROCUREMENT METHOD
This contract was competitively solicited through a Request for Bids (RFB) #501571 and was advertised on the Michigan Inter-Governmental Trade Network (MITN) website for 34 calendar days. MITN published this opportunity to 78 companies and 24 firms downloaded the bid package. Four bids were received, see attached Bid Tab for the pricing summary.
• Decima LLC
• EJ USA, Inc.
• Etna Supply Company LLC (DBB)
• Melmac Co., Inc. d/b/a Motor City Pipe & Supply Co. (DBB)
Etna Supply Company LLC was unable to hold prices for the two-year term and was deemed unresponsive. Decima LLC (Contract # 6005049) was awarded a contract based on lowest line-item pricing. Unfortunately, they have not been able to supply inventory items based on the award and their blanket contract agreement will be canceled by procurement. Melmac Co., Inc. d/b/a Motor City Pipe & Supply was the second contract recipient based on the lowest cost. Their bid was also evaluated and determined to be the lowest equalized responsive and responsible bidder and they also have the quickest lead time.
Melmac Co., Inc. d/b/a Motor City Pipe & Supply’s clearances expire 11/2/23 and a formal contract document is not required as the Standard Terms & Conditions apply.
SUMMARY
A. Company Melmac Co., Inc. d/b/a Motor City Pipe & Supply Co.
B. Contract No: 6005048
C. Contract Term: 4/1/23-3/31/25 (2 years)
D. Initial Contract Amount: $117,357.00
E. Addendum #1 $124,288.50
F. New Contract Amount $214,645.50
G. Anticipated FY Spend: FY 23-24: $26,830.69
FY 24-25: $107,322.75
FY 25-26: $80,492.06
H. Funding Source: O&M Funds
I. GL String: 5720-00000-000000-150100-000000-00000-0000-000000- 100% Water
This proposed contract was presented to the BOWC Finance Subcommittee on August 2, 2023. Per DWSD procurement protocol, no additional approvals are required.