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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 6007403 with Detroit Salt Company, LLC for the purchase of bulk road salt, through the State of Michigan MiDeal Cooperative Contract #180000000768, for a total contract amount not-to-exceed $121,700.00 and a term of 1 year. 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 September 17, 2025
Item No. 2025-207
Contract No.: 6007403
Contractor: Detroit Salt Company, LLC, 12841 Sanders Street, Detroit, MI 48217
Contract Amount: $121,700.00
Contract Term: 9/1/25 – 8/31/26
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract 6007403
Purchase of Rock Salt per the SOM MiDeal Cooperative Contract #180000000768
Detroit Salt Company, LLC
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 6007403 with Detroit Salt Company, LLC for the purchase of bulk road salt, through the State of Michigan MiDeal Cooperative Contract #180000000768, for a total contract amount not-to-exceed $121,700.00 and a term of 1 year. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
Bulk rock salt is used by DWSD on parking lots, roadways, worksites and sidewalks during the winter months to accelerate the melting of snow and ice, thereby reducing injuries to the public and employees. The DWSD Central Warehouse (WCW) store and provide road salt to most DWSD locations. DWSD is requesting to utilize the State of Michigan MiDeal Cooperative Contract #180000000768 for the purchase of bulk rock salt. Over 200 agencies in the State of Michigan utilize the MiDeal cooperative for the purchase of salt, which provides a volume discount to participants. The pricing for the 2025/2026 season is $60.85 per ton. This is an increase of $2.43 per ton from last year’s pricing. DWSD does not have a lot left over from last season due to many emergencies that occurred, so we did increase the amount for this season. DWSD anticipates using 2,000 Tons of salt for the upcoming snow season.
Central Warehouse – 2000 Tons at $60.85 per ton for a total of $121,700.00
This utilizes the State of Michigan MiDeal cooperative pricing for bulk rock salt in order to replenish and maintain DWSD’s inventory of salt to melt snow and ice in the winter months. The State of Michigan obtains annual pricing on salt from its pre-qualified vendors, providing the lowest possible price to participating public agencies. The State of Michigan awarded Contract It is efficient and cost effective to procure bulk road salt using this cooperative purchase arrangement. Use of cooperative purchase arrangements enable DWSD to obtain the benefits of competitive solicitation and discount pricing through economies of scale, while using minimal DWSD resources.
PROCUREMENT METHOD
DWSD Requisition #535935 was submitted and approved by Budget on 7/2/25. The price of salt has a high volatility rate and can fluctuate greatly in price from year to year, so the State of Michigan MiDeal pre-qualifies suppliers to submit pricing annually to ensure participating agencies receive the benefit of price decreases, should they occur. The initial MiDeal contract established four pre-qualified road salt suppliers for a term of 9/1/18 – 8/31/23, with five 1-year renewal options exercisable by the State of Michigan. The four pre-qualified suppliers are allowed to submit pricing over the term of the cooperative contract. DWSD will continue to seek annual approval for salt based on the awarded vendor for that season as indicated in the MiDeal Cooperative Contract #180000000768.
Detroit Salt’s clearances expired on 8/5/25 and the vendor has reapplied and is currently awaiting approval. A formal contract is not required.
SUMMARY
A. Contract No.: 6007403
B. Contractor: Detroit Salt Company, LLC
C. Contract Term: 9/1/25 – 8/31/26
D. Contract Amount: $121,700.00
E. Funding Source: O&M Funds
F. GL String:
5720-00000-000000-150100-000000-00000-0000-000000 - 100% Water
G. Anticipated FY Spend: FY 26-27: $101,416.67
FY 27-28: $ 20,283.33
This proposed contract was presented to the BOWC Finance Committee on September 3, 2025. Per the DWSD Procurement Policy, no additional approvals are required.