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The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Amendment No. 3 for DWSD Contract No. 6001658 (PC-803B) with LGC Global, Inc. to provide assistance with Automatic Meter Reading Installation and Related Work; by adding $300,000.00, for an amended total contract amount not-to-exceed $2,424,998.00. No change to the scope of work, terms and conditions, or contract expiring date of 12/31/24. 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 December 18, 2024
Item No. 2024-249
Proposed Amendment No. 3
Contract No.: 6001658 (PC-803B)
Contractor: LGC Global, Inc.
Address: 7310 Woodward Avenue, Suite 500, Detroit, MI 48202
Initial Contract Term: 4/8/19 - 4/8/22
Amendment No. 1 Extension: 4/9/22 - 6/30/24
Amendment No. 2 Extension: 7/1/24 - 12/31/24
Initial Contract Amount: $1,884,998.00
Amendment No. 2 Amount: $240,000.00
Proposed Amendment No. 3 Amount: $300,000.00
Proposed New Total Contract Amount: $2,424,998.00
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Proposed Amendment No. 3 to Contract No. 6001658 (PC-803B)
To add funding for the continuation of Automatic Meter Reading Installation and Related Services
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 Amendment No. 3 for DWSD Contract No. 6001658 (PC-803B) with LGC Global, Inc. to provide assistance with Automatic Meter Reading Installation and Related Work; by adding $300,000.00, for an amended total contract amount not-to-exceed $2,424,998.00. No change to the scope of work, terms and conditions, or contract expiring date of 12/31/24. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND & JUSTIFICATION
This contract corrects DWSD automatic meter reading (AMR) System exceptions by exchanging, maintaining, and repairing water meters and MIUs throughout the City of Detroit without disrupting or falling below the industry standard of offering meter appointments in five (5) days or less. Correcting the exceptions and inaccuracies allows DWSD to provide its customers with accurate and detailed billing statements versus estimates. Keeping the standard five (5) day rule for customer appointments demonstrate DWSDs commitment to customer satisfaction. DWSD Field Services relies heavily upon this contract to perform customer requested service interruptions as well as addressing vacant flooding structures. Demand for corrective maintenance and related work cannot be met with the existing staff due to the volume of work that exists.
DWSD’s (pre-bifurcation) contract CM-2007 implemented the Itron, Inc. (Itron) fixed-base retail Automated Meter Reading (AMR) system, commercially known as Water SaveSourceTM, to automatically collect the water meter reads from DWSD’s retail customers. Beginning December 2007, the Water SaveSourceTM system began its production, which required Customers to have properly functioning meter reading equipment to maintain water service at their residence. With the AMR system providing actual meter reads, errors or exceptions can still occur with this system due in part to customer tampering, equipment failure and/or occasional network system problems. However, when an error is detected, Customers will receive estimates versus an actual bill until the error is corrected by Meter Operations personnel.
Amendment No. 1 was approved by the Director, via an executive letter, to extend the contract term. Due to high number of work orders for burst plumbing fixtures and DWSD Field Service’s limited resources and staff available to address the current workload, Meter Operations is requesting to extend the term from 4/8/22 to 6/30/24 to provide customers with properly functioning meter reading equipment and maintain water services at their residences.
Amendment No. 2 was approved by the BOWC, to add time and funding for the continuation of services. The replacement contract was advertised for bids but due to several factors, the department did not select an awardee and opted to rebid for better pricing and a more defined scope of work.
Proposed Amendment No. 3 is to add additional funding. This funding will enable the Meter Operations team to pay for invoices and successfully close out the remaining tasks as outlined in the scope of work.
PROCUREMENT METHOD
This open competitive project was advertised on MITN/BidNet from 12/7/18 - 12/21/18 (14 calendar days). This contract was approved by the BOWC on 1/16/19 with a term of 3 years and a total NTE of $1,884,998.00.
Amendment 1 was a request to extend the term from 04/08/2022 to 6/30/2024 (by 2 years and 2 month) at the same pricing, scope, terms, and conditions as the initial contract. Approval granted through a signed Executive Letter by Director Brown.
Amendment 2 was submitted through requisition 520208, which was approved by Budget on 5/15/24. This Amendment requests to extend time through 12/31/24 (6 months) and adding $240,000.00 in funding. There was no change in scope or terms and conditions. A new solicitation for this service will be posted prior to the expiration of this contract.
Proposed Amendment 3 was submitted through requisition 528059, which was approved by Budget on 11/18/24. This Amendment is requesting funding in the amount of $300,000.00. These funds will cover all remaining invoices forecasted for the completion of tasks outlined in the scope of work, as well as the final contract closure procedures.
LGC’s clearances expire 12/6/24. A formal amended contract document has been sent to the vendor for signature.
SUMMARY
A. Contract No.: 6001658 (PC-803B)
B. Initial Contract Term: 04/08/19 - 04/08/22 (3 years)
C. Amendment No. 1 Extension: 04/09/22 - 06/30/24
D. Amendment No. 2 Extension: 07/01/24 - 12/31/24
E. Initial Contract Amount: $1,884,998.00
F. Amendment No. 2 Amount: $240,000.00
G. Proposed Amendment No. 3 Amount: $300,000.00
H. Proposed New Total Contract Amount: $2,424,998.00
I. Funding Source: CIP and O&M Funds
J. GL String(s):
5720-20168-483301-622302-000205-10790-0000-000000 38.2% Water -O&M
5820-20179-493301-622302-000226-15805-0000-000000 61.8 % Sewer -O&M
5721.20244.487711.617900.900277.10792.0000.000000 50% Water -CIP
5821.20243.497711.617900.900277.15802.0000.000000 50% Sewer -CIP
K. Projected Fiscal Year (FY) Contract Expenditures:
FY 24/25: $300,000.00
This proposed amendment was presented to the DWSD Finance Committee on December 4, 2024. Per the DWSD Procurement Policy, no further approvals are needed.