Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6004526 with Human Fliers, LLC, to deliver “service interruption” notices (door hangers) and provide services to support survey programs for DWSD customers for a period of three-years, at a cost not-to-exceed $300,000. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of June 15, 2022
Item No.: 22-0838
Contract No.: 6004526
Contractor: Human Fliers, LLC, 19220 Pelkey, Detroit, MI 48205
Contract Amount: $300,000
Term: 7/1/22 - 6/30/25 (3 years)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract 6004526
Service Interruption Notices
Human Fliers, 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 6004526 with Human Fliers, LLC, to deliver “Service Interruption” notices (door hangers) and provide services to support survey programs for DWSD customers for a period of three-years, at a cost not-to-exceed $300,000. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
DWSD currently mails “Service Interruption” notices and follows up with additional delivery of “Service Interruption” door hangers directly to the property/site. As part of the revenue collection efforts, Human Fliers, LLC’s continued task will be to provide the status on whether property is occupied, vacant and/or abandoned for the purpose of assisting DWSD in updating its data and continued optimization of its collection efforts. The Revenue Protection Department (RPD) uses information gathered from the field to determine the probability of payment for services rendered.
DWSD Revenue Protection Department reports have shown that by hand delivering this additional “service interruption” door hanger notifications to delinquent customers, 41% of customers have resolved their balances to avoid the interruption. Human Fliers has supplied this delivery and survey service for DWSD since 2018. The services they have provided are invaluable to DWSD.
PROCUREMENT METHOD
Requisition #495979 was submitted and approved on 3/23/2022. It was competitively solicited as RFB #495979 - Service Interruption Notices on the BidNet Michigan Inter-Governmental Trade Network (MITN) website for 23 days. MITN published this opportunity to 131 companies subscribing to the relevant NIGP codes(s) and 13 firms downloaded the RFB package. One bid was received by Human Fliers, LLC. An enquiry was sent to everyone that pulled documents to find out why they did not bid, 2 were returned. The reason for not bidding was they did not handle this particular product or brand equivalent and vendor misread RFB.
The responses are:
Vendor |
No Bid Response |
Empire Equipment & Supply Co |
Did not handle product or brand equivalent |
Extend Your Reach |
Unable to meet bond requirement (informed vendor there was no bond requirements, Vendor misread RFB) |
Therefore, DWSD Procurement recommends awarding the contract to Human Fliers, LLC., whose clearances expire on 6/2/23. Per DWSD procurement protocol, Mayoral approval will also be obtained, and a formal contract document is routing for signature and is expected to be signed before the BOWC regular meeting.
SUMMARY
A. Contract No: 6004526
B. Contract Term: 7/1/22 - 6/30/25 (3 years)
C. Total Contract Amount: $300,000
D. Anticipated FY Spend:
FY 22-23: $100,000
FY 23-24: $100,000
FY 24-25: $100,000
E. Funding Source: O&M Funds
F. GL String:
5720-20169-484161-617900-000207-10790-0000-000000 30%
5820-20180-494161-617900-000228-15805-0000-000000 70%
This proposed contract was presented to the BOWC Finance Subcommittee on June 15, 2022. Per DWSD procurement protocol, Mayoral approval will also be obtained.