Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contracts 6005537, 6005604, 6005605 and 6005606 for Full Lead Service Line Replacements at Various Locations Throughout Detroit (Project WS-737), for a total combined contract not-to-exceed amount of $45,000,000.00 (reimbursable via ARPA Funds) and a term of two and one-half years (2.5 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 September 20, 2023
Item No. 2023-204
Contracts:
6005537 - Major Contracting Group - 12222 Greenfield Road, Detroit, MI 48227
6005604 - LGC Global Corporation - 7310 Woodward Avenue, Suite 500, Detroit, MI 48202
6005605 - Five Star Energy Services - West 228th St 7055 Enterprise Dr, Suite 2, Big Bend, WI 53103
6005606 - Bidigare Contractors - 939 S. Mill Street, Plymouth, MI 48170
Combined Total Not-to-Exceed Amount of ALL 4 Contracts: $45,000,000.00
Note: funds will be utilized between the four contracts and will not exceed the total approved combined amount
Term of ALL Contracts: 900 calendar days (2.5 years)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contracts for Full Lead Service Line Replacements at Various Locations Throughout Detroit (Project WS-737)
Contract 6005537 Major Contracting Group
Contract 6005604 LGC Global Corporation
Contract 6005605 Five Star Energy Services
Contract 6005606 Bidigare Contractors
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 Contracts 6005537, 6005604, 6005605 and 6005606 for Full Lead Service Line Replacements at Various Locations Throughout Detroit (Project WS-737), for a total contract not-to-exceed amount of $45,000,000 (reimbursable via ARPA Funds) and a term of two and one-half years. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
Detroit has an estimated 80,000 lead service lines (LSLs), connected to an aged and historically under-maintained water network, with high incidences of water main breaks. Main breaks and service leaks frequently affect LSLs and require disconnecting the LSL to make a repair. As part of the DWSD Capital Improvement Program (CIP) for the replacement of water mains, lead service lines are converted to new copper service lines along with the provision of water filters and pitchers to the customer for the benefits the public health and safety. Given the potential negative health impacts due to Lead service lines to water system customers, DWSD has been undertaking efforts in the replacement of these services. In addition to the replacement of LSLs along with water main replacement work, DWSD is undertaking dedicated LSL replacement from the existing water main to the customer meter without water main replacement.
Per EPA and MI-EGLE requirements, Lead services are to be replaced from the water main all the way to the customer meter within their property (residence, commercial space, other). Normally, Lead replacements are integrated into water main replacement capital work, but not all water mains can be replaced over the next handful of years to capture all the outstanding Lead services. Under Contract WS-737, DWSD proposes to develop a dedicated Lead water service replacement project whose scope does not have the necessity of a full water main replacement. Through this contract, up to 6,000 Lead services will be replaced over three years with a combination of excavation and directional boring.
The work consists of replacing Lead water services of up to two inches in diameter with copper services and road/curb boxes at up to 6,000 locations throughout the City of Detroit. These locations are not known at this time and services will be located through hydro excavation work by the contractor as part of the project scope. The space near the shutoff box at the sidewalk will be excavated to the depth of the existing water service and visual confirmation made of Lead or copper in place. If a copper service is found, then the site will be backfilled and restored at cost; if Lead, then the contractor will coordinate replacement. Also, other locations of LSL work may be assigned to the Contractor identified by the Engineer and assigned to the Contractor on an “as-needed” basis pursuant to the terms and conditions of the Contract Documents.
There is no guarantee as to the number of replacement locations that will be assigned. Work will be split up amongst the contractors by neighborhood. However, about 6,000 Lead service line replacements are expected to be assigned throughout the life of this Contract. And no design drawings will be provided by DWSD. The contractor will be responsible for following the DWSD Full Lead Service Line Replacement (FLSLR) Standard Operating Procedures (SOPs) and Lead Water Services specification to efficiently and safely remove and replace LSLs.
This project is underwritten with monies from the Federal American Rescue Plan Act (ARPA).
PROJECT OBJECTIVES / COSTS
The work is to be completed within 900 days (2.5 years). The full-service line replacement involves replacing the existing Lead service with new copper service line, installing new curb stop and curb box, and restoration of all lawn/pavement disturbed by the individual site work. The pay item description shall be as follows:
a. The costs of materials, labor, equipment, and all other incidental materials necessary for the removal and replacement of Lead water services lines on the private side from the curb stop to the water meter, including coordination with customer, saw cutting, pavement removal, driveway removal, sidewalk removal, curb removal, excavation, excavation support, dewatering excavation, hauling, disposal, bedding, provision of clean backfill, compaction, copper services, wax tape, and all attendant water service installation items required per the Specifications shall be included in the cost of the pay item.
b. Restoration for full reinstatement of all items including, but not limited to, aggregate base, concrete base, paving, curb, sidewalk, seeding, and sod will be paid for as a per-service arrangement.
c. Installation of water service from the existing water main, through the curb stop, and onward to the property water meter will include the furnishing, installation, and connection of a new curb stop, road box, and all other appurtenances.
d. Lead service line replacement at each property will include the coordination between the Contractor and the DWSD Lead Service Team. Contractor to coordinate with Lead Service Team for interaction and communication with residents, delivery of notices to residents, and all other requirements as found in the Specifications for Lead Service Line Replacement and will be included in the cost of this item.
PROCUREMENT METHOD
This procurement was competitively solicited through a Request for Proposals (RFP) per Requisition 507805, which was fully approved on 7/5/23. The RFP was advertised on the Michigan Inter-Governmental Trade Network (MITN) BidNet website for 42 calendar days (6/6/23 - 7/18/23). MITN published this opportunity to 815 companies and 75 firms downloaded the proposal package. In addition to posting on MITN, Procurement sent email notices to approximately seven (7) firms. Additional vendor outreach was performed by DWSD staff in an attempt to connect with firms that have not done business with DWSD in the past in an effort to expand the DWSD vendor pool.
The Engineer’s Estimate for this work is $45,000,000, which is the amount DWSD received in ARPA funding to replace lead service lines in Detroit.
The Evaluation Committee was comprised of an Engineer from the Engineering Office, a Finance Asset Manager, and a Project Manager from engineering. Evaluations were based on the following criteria:
• Ability to perform work
• Work plan & organization
• Staff Experience
Eight proposals were received. Each proposal was evaluated by Procurement on a pass/fail basis with respect to responsiveness and responsibility. Four proposals, from Decima LLC, Miller Pipeline, Inner City Contracting LLC, and Moore Bros. Plumbing, Heating and Cooling were deemed non-responsible for failing to meet DWSD’s stated minimum qualification of having completed a minimum of 250 full lead service line replacements.
Each voting member of the Evaluation Committee independently reviewed, evaluated, and scored the remaining four (4) responsive and responsible proposals based on the criteria listed above. Procurement took the scores and tallied up the rankings based on the scores. Procurement then determined the highest ranked responsive and responsible Proposer.
|
Rank |
Proposer |
Score |
|
1 |
LGC Global Corporation |
10,230 |
|
2 |
Major Contracting Group |
6,770 |
|
3 |
Five Star Energy |
6,540 |
|
4 |
Bidigare Contractors |
6,305 |
Procurement conducted pricing negotiations simultaneously during the technical evaluation period and successfully agreed upon unit costs for all four (4) proposers.
The Evaluation Committee and Procurement recommends the highest-ranked responsive & responsible proposers be awarded separate contracts for a term of 2.5 years and a combined total contract not-to-exceed amount of $45,000,000.00 with Major Contracting Group, LGC Global Corporation, Five Star Energy Services, and Bidigare Contractors (WS-737).
Major Contracting Group’s clearances expire on 8/25/23, LGC Global Corporation’s on 12/12/23, Five Star Energy Services on 12/12/23, and Bidigare Contractor’s on 2/6/24. Formal contract documents have been sent to each of the Contractors for review and signature.
SUMMARY
A. Contract No. 1: 6005537
B. Contractor: Major Contracting Group
C. Contract Amount: $11,250,000.00
D. Contract No. 2: 6005604
E. Contractor: LGC Global Corporation
F. Contract Amount: $11,250,000.00
G. Contract No. 3: 6005605
H. Contractor: Five Star Energy Services
I. Contract Amount: $11,250,000.00
J. Contract No. 4: 6005606
K. Contractor: Bidigare Contractors
L. Contract Amount: $11,250,000.00
M. Tentative Combined Contract Term: 10/1/2023 - 3/31/2026 (2.5 years)
N. Combined Total Contract Amount: $45,000,000.00 ($11,250,000.00 x 4)
O. Anticipated FY Breakdown: FY 24: $10,000,000 ($2,500,000.00 per contract)
FY 25: $20,000,000 ($5,000,000.00 per contract)
FY 26: $15,000,000 ($3,750,000.00 per contract)
P. Funding Source: I&E Funds, with 100% of the funds reimbursable through the
Federal American Rescue Plan Act (ARPA) Funds
Q. GL String: 5721-20244-487711-617900-900372-30129-0000-000000
- 100% Water
These contracts were presented to the BOWC Finance Subcommittee on September 6, 2023. Per DWSD procurement protocol, Mayoral Review will also be obtained.