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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 6005502 (WS-732) with Murphy Pipeline Contractors, LLC. for Water Main Replacement and Water Service Replacement including Lead Service Line replacement, for various locations, west of Livernois Avenue within the City of Detroit, for a total contract not-to-exceed amount of $12,791,611.00 (reimbursable by ARPA funding) and a term of two 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. 2023-167
Contract No. 6005502 (WS-732)
Contractor: Murphy Pipeline Contractors, LLC.
Address: 12235 New Berlin Rd, Jacksonville, FL 32226
Contract Amount: $12,791,611.00
Contract Term: 730 calendar days (2 years) -10/1/23 - 9/30/25
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6005502 / Project No. WS-732
Water Main Replacement and Water Service Replacement in 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 6005502 (WS-732) with Murphy Pipeline Contractors, LLC. for Water Main Replacement including Lead Service Line replacement, and Water Service Replacement for various locations, west of Livernois Avenue within the City of Detroit, for a total contract not-to-exceed amount of $12,791,611.00 (reimbursable by ARPA funding) and a term of two years.
BACKGROUND / JUSTIFICATION
DWSD Project No. WS-732 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 costs. Lead services forecasted for replacement is 505 and represents (22%) percent of the contractor’s bid. The aggregate forecasted length of Lead services being replaced with copper within the public ROW is 10,588 linear feet and 3,529 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 6005502, for Project WS-732, 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-732 is to replace existing 6-inch through 12-inch water mains that have a history of leaks and breaks with approximately 24,556 linear feet of 8-inch, and (Total) linear feet of 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. The work also includes rehabilitating the existing water main by the placement of an epoxy-bonded liner along the interior of the existing pipe. Finally, whether the pipe is a new DI pipe, HDPE pipe, or existing pipe rehabilitated through the lining, 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 505 and it represents 55 percent of the contractor’s bid. The aggregate forecasted length of Lead services being replaced with copper within the public ROW is 10,588 linear feet and 3,529 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, and 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.
The contract costs are as follows:
|
Contract Price |
$ 11,728,295 |
|
Provisional Allowance |
$ 1,000,000 |
|
Contaminated Materials Allowance |
$ 20,000 |
|
BSEED Permit Allowance |
$ 43,316 |
|
Total Contract Price |
$ 12,791,611 |
PROCUREMENT METHOD
This procurement was competitively solicited through a Request for Bids (RFB) per Requisition 507633,
which was fully approved on 5/30/23. 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 1,404 companies and 73 firms downloaded the bid package. In addition to posting on MITN, Procurement sent email notices to approximately 89 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 $14,576,938.70.
Four (4) bids were received:
|
Bidder |
Total Bid Price |
Equal. Applied *(N/A) |
Equal. Credit *(N/A) |
Equal. Bid Total *(N/A) |
|
Murphy Pipeline Contractors, LLC. |
$12,791,611 |
N/A |
N/A |
$12,791,611 |
|
LGC Global |
$13,378,384 |
DBB - 1% |
($133,783) |
$13,244,600 |
|
Major Contracting Group |
$14,146,042 |
DBB - 1% |
($141,460) |
$14,004,581 |
|
Bidigare Contractors |
$15,183,344 |
N/A |
N/A |
$15,183,344 |
As the apparent equalized low bidder, Murphy Pipeline Contractors, LLC. bid was evaluated first. Murphy Pipeline Contractors, LLC. bid included all required information and was deemed responsive and responsible. Therefore, it is recommended that Murphy Pipeline Contractors, LLC. be awarded the contract resulting from the RFB for WS-732 in the amount of $12,791,611.00 and for a term of two years. The bid tab, responsiveness evaluation, equalization analysis, and the four bids were sent to the Construction and Engineering Division.
*No equalization credits were included in the publication for bids or factored as a methodology for evaluating bid responses.
Murphy Pipeline Contractors, LLC. submitted application for clearances on 6/28/23 and the formal contract document has been sent to Murphy Pipeline Contractors, LLC. for review and signature.
SUMMARY
A. Contract No.: 6005502 (WS-732)
B. Contractor: Murphy Pipeline Contractors, LLC.
C. Contract Term: 730 days (2 years) - 10/1/23 - 9/30/25
D. Contract Amount: $12,791,611.00
E. Anticipated FY Breakdown: FY 23-24: $4,000,000.00
FY 24-25: $5,000,000.00
FY 25-26: $3,791,611.00
F. Funding Source: I&E Funds, with 100% of the funds reimbursable through the
Federal American Rescue Plan Act (ARPA) Funds
G. GL String: 5721-20244-487711-617900-900361-30129-0000-000000
- 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.