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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. 2 to DWSD Contract 6005050 (WS-735), with Five Star Energy Services, for the continuation of Full Lead Service Line Replacements at Various Locations Throughout Detroit, by adding $4,099,950.00 in funding, and 92 days, for a new amended contract amount not-to-exceed $29,702,550.00 and a new expiring term of 9/30/2026. 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 June 3 , 2026
Item No. 2026-141
Proposed Amendment No. 2
Contract No.: 6005050 (WS-735)
Contractor: Five Star Energy Services, Inc.
Address: West 228th St 7055 Enterprise Dr, Suite 2, Big Bend, WI 53103
Current Contract Amount: $25,602,600.00
Proposed New Total Contract Amount: $29,702,550.00 (++ $4,099,950.00)
Current Contract Term: 3/10/23 - 6/30/26
Proposed New Contract Term: 7/1/26 - 9/30/26 (++ 92 days)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6005050 / Project No. WS-735
Full Lead Service Line Replacements at Various Locations Throughout Detroit
Five Star Energy Services, 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. 2 to DWSD Contract 6005050 (WS-735), with Five Star Energy Services, for the continuation of Full Lead Service Line Replacements at Various Locations Throughout Detroit, by adding $4,099,950.00 in funding, and 92 days, for a new amended contract amount not-to-exceed $29,702,550.00 and a new expiring term of 9/30/2026. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
Detroit has an estimated 80,000 lead service lines (LSLs), connected to an aged and historically under- maintained water network, with high incidences of water main breaks. Main breaks and service leaks frequently affect LSLs and require disconnecting the LSL to make a repair. As part of the DWSD Capital Improvement Program (CIP) for the replacement of water mains, lead service lines are converted to new copper service lines along with the provision of water filters and pitchers to the customer for the benefits the public health and safety. Given the potential negative health impacts due to Lead service lines to water system customers, DWSD has been undertaking efforts in the replacement of these services. In addition to the replacement of LSLs along with water main replacement work, DWSD is undertaking dedicated LSL replacement from the existing water main to the customer meter without water main replacement.
Per EPA and MI-EGLE requirements, Lead services are to be replaced from the water main all the way to the customer meter within their property (residence, commercial space, other). Normally, Lead replacements are integrated into water main replacement capital work, but not all water mains can be replaced over the next handful of years to capture all of the outstanding Lead services.
The work consists of replacing Lead water services of up to two inches in diameter with copper services and road/curb boxes throughout the City of Detroit. The locations have not been identified at this time and will be located through hydro excavation work by the contractor as part of the project scope. The space near the shutoff box at the sidewalk will be excavated to the depth of the existing water service and visual confirmation made of Lead or copper in place. If a copper service is found, then the site will be backfilled and restored at cost; if Lead, then the contractor will coordinate replacement. Also, other locations of LSL work may be assigned to the Contractor identified by the Engineer and assigned to the Contractor on an “as-needed” basis pursuant to the terms and conditions of the Contract Documents.
The contractor will be responsible for following the DWSD Full Lead Service Line Replacement (FLSLR) Standard Operating Procedures (SOPs) and Lead Water Services specification to efficiently, effectively, and safely remove and replace LSLs.
Proposed Amendment No. 2 consists of utilizing surplus ARPA funding approved by EGLE from projects WS-732 and WS-733, where work has been completed under budget. This proposed amendment to reallocate funds will support DWSD’s effort to continue replacing Lead Service Lines in neighborhoods which have been identified by density of housing built prior to 1945, areas throughout the city where a significant number of children and seniors reside, as well as residential areas where there may be a potentially high population of low-income households.
PROCUREMENT METHOD
The Initial Contract was competitively solicited through a Request for Bids (RFB) per Requisition 502647, which was fully approved on 11/21/22. The RFB was advertised on the Michigan Inter-Governmental Trade Network (MITN) BidNet website for 50 calendar days (11/22/22 - 1/11/23). MITN published this opportunity to 1,408 companies and 94 firms downloaded the bid package. In addition to posting on MITN, Procurement sent email notices to approximately 90 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.
Six bids were received:
|
Bidder |
Total Bid Price |
Equal. Applied |
Equal. Credit |
Equal. Bid Total |
|
Five Star Energy Services |
$24,702,600 |
N/A |
N/A |
$24,702,600 |
|
Major Contracting |
$29,970,500 |
DBB - 1% |
($299,705) |
$29,670,795 |
|
Bidigare Contractors |
$36,199,850 |
N/A |
N/A |
$36,199,850 |
|
Lakeshore Global Corp. |
$36,999,000 |
DBB - 1% |
($369,990) |
$36,629,010 |
|
GDI Services |
$39,482,813 |
N/A |
N/A |
$39,482,813 |
|
Metro Pipe & Drain |
$67,903,400 |
N/A |
N/A |
$67,903,400 |
As the apparent equalized low bidder, Five Star Energy Services, Inc.’s bid was evaluated first. Five Star’s bid included all required information and was deemed responsive and responsible. Therefore, it was recommended that Five Star Energy Services, Inc. be awarded the contract resulting from the RFB for WS-735 in the amount of $25,000,000. The Board of Water Commissioners approved this contract on February 15, 2023.
Amendment No. 1 was submitted through requisition #543323, which was approved by Budget on 1/7/26. This Amendment request added $900,000.00 in funding to the existing contract, to enable the department to continue replacing additional lead service lines throughout various areas within the City of Detroit. This amendment was presented during the January 21st meeting and was approved unanimously by the Board of Water Commissioners.
Proposed Amendment No.2 was submitted through requisition #548380, which was approved by Budget on 5/29/26. This Amendment is to request additional funding in the amount of $4,099,950.00 and extend the term by 92 days, for a new contract term ending 9/30/26 and a total amended contract amount not to exceed $29,702,550.00. This funding is a surplus of remaining EGLE ARPA dollars not fully utilized under DWSD projects WS-732/ 733. Both projects were completed ahead of schedule and under budget. Approval of Amendment No, 2 will enable DWSD to continue its rigorous efforts to replace as many Lead Service Lines as funding will permit and maintain our compliance with the State of Michigan EGLE Lead Service and Copper Line Rule.
Five Star’s clearances expire 6/17/26 and the formal contract document will be routed to Five Star Energy for review and signature.
SUMMARY
A. Contract No.: 6005050 (WS-735)
B. Contractor: Five Star Energy Services, Inc.
C. Initial Contract Term: 3/10/2023 - 3/9/2026
D. Amendment No. 1: 3/10/2026 - 6/30/2026
E. Proposed Amended Contract Term: 7/01/2026 - 9/30/2026 (+92 days)
F. Initial Contract Amount: $24,702,600.00
G. Amendment No. 1 Amount: $900,000.00
H. Proposed Amendment No. 2 Amount: $4,099,950.00
I. Proposed New Total Contract Amount: $29,702,550.00
J. Funding Source: CIP (ARPA reimbursable)
K. GL String: 5721-20244-487711-617900-900355-30129-0000-000000
- 100% Water
This amendment was presented to the DWSD Board of Water Commissioners, Special Session June 3, 2026. Per DWSD Procurement Policy, Mayoral approval will also be obtained.