Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6006750 (WS-743), with LGC Global, Inc. for as-needed Water Main Replacements throughout various locations within the City of Detroit, for a total contract amount not-to-exceed $14,225,378.55 and a term of two (2) 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 November 20, 2024
Item No.: 2024-222
Contract No. 6006750 (WS-743)
Contractor: LGC Global, Inc. (DHB), (DBB)
Address: 7310 Woodward Ave Ste 500, Detroit MI 48202
Contract Amount: $14,225,378.55
Contract Term (Tentative): 12/1/2024 - 11/31/2026 (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 No. 6006750 (WS-743)
Water Main Replacement As Needed in The City of Detroit
LGC Global, Inc.
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 6006750 (WS-743), with LGC Global, Inc. for as-needed Water Main Replacements throughout various locations within the City of Detroit, for a total contract amount not-to-exceed $14,225,378.55 and a term of two (2) years. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
The Detroit Water and Sewerage Department (DWSD) requires this contract for urgent water main replacement work throughout various locations within the City of Detroit’s Water System. The regular DWSD water contracts are either solely for water main repair or water main replacement with defined scopes of work pre-determined, designed and constructed.
This contract is unique in that the scope of work covers water main replacement on an as-needed emergency basis. This contract is intended for emergency water main replacement, without a full and complete set of construction drawings. Water mains to be replaced under this contract are intended to be placed in the alignment of the existing water main as applicable. During the course of this contract, short segments of water main may experience multiple breaks, but may not be appropriate and/or cannot wait to be packaged in a traditional water main replacement contract. However, replacement of such water main should not be delayed maintaining water service to DWSD’s customers and eliminate non-revenue water loss.
This contract will also provide relieve by reducing the inconveniences to DWSD’s customers and public due to repeated road closures and excavation repairs of various recurring water main leaks across the City. DWSD’s Water CIP Program evaluates water pipe conditions and break histories to determine the areas within the water system best suited for planned replacement work.
DWSD Project No. WS-743 is an ongoing water distribution pipe system replacement program within the City of Detroit. This contract replaces the current WS-717 and provides for the emergency replacement of limited lengths of water mains that have failed multiple times in a short period and for which a traditional design-bid-build project would take too long to establish a reliable water service to DWSD retail customers.
PROJECT OBJECTIVES
The objective of the proposed Contract No. 6006750 consists of the following, throughout the City of Detroit, on an as-needed basis:
A. Replacement and installation of new water main, water services hydrants, valves, gate wells, gate boxes, thrust blocks, and other water main related Work.
B. Trenchless installation of water main and/or water services by method of pipe bursting and directional drilling as directed by the Engineer.
C. Lead Service Line Replacement, both in the ROW and from curb box to the property water meter including coordination with Lead Service Line Team for interaction and communication with residents, delivery of notices, pitchers, and filters to residents.
D. Installation of electrical grounding systems per the Contract Specifications.
E. Snow and ice removal to berm and removal from site including salt applications as directed by the Engineer.
F. Site cleanup and restoration including surface restoration of pavement, curbs, sidewalks, driveways, and lawn restoration.
G. Additional work as defined in the bid schedule and measurement and payment descriptions.
PROCUREMENT METHOD
This procurement was competitively solicited through a Request for Bids (RFB) per Requisition 522795,
which was fully approved by Budget on 7/23/24. The RFB was advertised on the Michigan Inter-Governmental Trade Network (MITN) BidNet website for 45 calendar days (7/26/24 - 9/9/24). MITN published this opportunity to 3225 companies and 281 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 $14,792,364.64.
Four bids were received:
|
Bidder |
Total Bid Price |
|
|
Equal. Applied |
Equal. Credit |
Equal. Bid Total |
|
LGC Global, Inc. |
$14,225,378.55 |
|
|
DHB - 1.0% |
($142,253.79) |
$14,083,124.76 |
|
Five Star Energy Services |
$15,599,887.50 |
|
|
N/A |
N/A |
$15,599,887.50 |
|
Major Contracting Group |
$18,962,250.00 |
|
|
DHB - 1.0% |
($189,622.50) |
$18,772,627.50 |
|
Murphy Pipeline Contractors |
$23,314,850.00 |
|
|
N/A |
N/A |
$23,314,850.00 |
After the bids were reviewed, the lowest equalized bidder is LGC Global, Inc.; their bid included all required information and was deemed responsive and responsible. LGC Global, Inc., is a Detroit Based Business (DBB) & Detroit Headquartered Business (DHB). Therefore, it is recommended that LGC Global, Inc. be awarded the contract resulting from the RFB for WS-743 in the amount of $14,225,378.55 and for a term of two years. The bid tab, responsiveness evaluation, equalization analysis, and bid was sent to the Construction and Engineering Division.
LGC Global, Inc. clearances expire on 12/06/24 and the formal contract document has been sent to the vendor for review and signature.
SUMMARY
A. Contract No.: 6006750 (WS-743)
B. Contractor: LGC Global, Inc.
C. Contract Term (Tentative): 12/1/2024 - 11/31/2026 (2 years)
D. Contract Amount: $14,225,378.55
E. Anticipated FY Breakdown: FY 24-25: $4,149,068.75
FY 25-26: $7,112,689.28
FY 26-27: $2,963,620.52
F. Funding Source: CIP Funds
G. GL String: 5740-20334-487801-617900-900398-30129-0000-000000 - 100%
Per DWSD procurement protocol, Mayoral Review and City Council approval will also be obtained.