Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6003539 for Inspection, Rehabilitation, and Replacement of Sewers throughout the City of Detroit (as needed) for Project DWS-920 with Inland Waters Pollution Control, Inc., at a cost not-to-exceed $19,924,315 and a term of three (3) 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 August 18, 2021
Item No. 21-0533
Proposed Contract No. 6003539
Contractor: Inland Waters Pollution Control, Inc. (DBB)
Address: 4086 Michigan Ave, Detroit, MI 48210
Contract Amount: $19,924,315
Contract Term: 1,095 calendar days (3 years) - anticipated start date of January 2022
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6003539 / Project No. DWS-920
Inspection, Rehabilitation, and Replacement of Sewers throughout the City of Detroit (as needed) with Inland Waters Pollution Control
MOTION
Upon recommendation of Mamata Burgi, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6003539 for Inspection, Rehabilitation, and Replacement of Sewers throughout the City of Detroit (as needed) for Project DWS-920 with Inland Waters Pollution Control, Inc., at a cost not-to-exceed $19,924,315 and a term of three (3) years. 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 provides as-needed inspection and in-place rehabilitation of selected sewers primarily using the procedures, methods and equipment of the cured-in-place pipe lining process. The existing Detroit Water and Sewerage Department (DWSD) sewer system within the City limits consists of approximately 3,000 miles of sewers ranging from 6” thru 120” and is generally older than ninety-years. As a result of the sewers age, they are deteriorating at a faster rate. Some are near the point of collapsing, and immediate emergency action is often required. Therefore, rehabilitation services are needed to repair plugged, damaged and collapsed sewers to avoid basement flooding, and maintain the flows within the wastewater collection system.
The contract is being initiated to provide all labor, materials, and equipment to fully perform the work of televising inspection, cleaning, repair and rehabilitation/lining of circular and non-circular storm and sanitary sewers. The work will primarily involve the repair of failed/collapsed circular and non-circular storm and sanitary sewers by means of the open cut repair method. Additionally, the work involves the rehabilitation of sewers by using the relining methods of cured-in-place pipe (CIPP) conforming to the requirements of the current standard specification for “Rehabilitation of Existing Pipelines and Conduits by the Inversion and Curing of a Resin-Impregnated Tube, American Society for Testing and Materials (ASTM) Designation F1216-05, ASTM F1743 Pulled, ASTM D5813, ASTM D790, ASTM D2990 on as-needed basis. The work also involves the rehabilitation of manholes by Cementitious and Epoxy liners. The Contractor is also required to furnish all labor, materials and incidentals required to complete the project in accordance with the Contract Documents. The work will be located throughout the City.
PROCUREMENT METHOD
This contract was procured through a Request for Bids (RFB) per Requisition #486700 (approved on 3/4/21) and was advertised on the BidNet Michigan Inter-Governmental Trade Network (MITN) website for 27 calendar days (3/11/21 - 4/7/21). MITN published this opportunity to 757 companies and 57 firms downloaded the RFB package. In addition, 89 firms were emailed notices of this project being posted on MITN, of which, 19 of those firms are located in Detroit. The Engineer’s Estimate for this work was $20,000,000.
Three (3) bids were received:
|
Bidder |
Bid Amount |
Equalizations |
Equalized Bid |
|
|
Lakeshore Global Corporation |
$18,952,690.49 |
1% (DBB) |
$18,763,163.59 |
Disqualified |
|
Inland Waters Pollution Control |
$19,924,315.00 |
1% (DBB) |
$19,725,071.85 |
|
|
Major Cement Co. |
$20,779,082.50 |
1% (DBB) |
$20,571,291.67 |
Disqualified |
Note: $1,600,000 of the total bid amounts includes provisional allowances for unforeseen conditions.
As the apparent low bidder, Lakeshore Global Corporation’s bid was evaluated first. Lakeshore’s bid was deemed nonresponsible for failing to provide evidence that they meet all technical minimum qualifications listed in the RFB. Lakeshore’s bid did not provide any evidence showing that as the Prime, they have experience with work similar in nature and scope including pipeline inspections, manhole inspections, CCTV, LASER and SONAR inspections and their staff are not certified by National Association of Sewer Service Company (NASSCO), as required.
The bids for Inland Waters and Major Cement were evaluated next. Inland Waters did not meet the Experience Modification Rating (EMR) for the year 2020 (1.00 or below). Major Cement’s bid used subcontractors to meet the minimum requirements, but the RFB states that the “Bidder” (or Prime) must have the required experience.
Because all three vendors would be disqualified, DWSD Finance made the decision to waive the EMR requirement of 1.0 or below for Inland Waters, with Engineering’s consent, based on the following factors:
1. Engineering has confirmed that the bids received from Lakeshore Global and Major Cement are disqualified as they are using subcontractors to meet the minimum qualifications and the RFB states that the “Bidder” (or Prime) must have the required experience.
2. Inland Waters Pollution Control is the incumbent on the current contract for these services and has performed satisfactorily with their current Experience Modification Rating (EMR) of 1.04. Inland is also a subcontractor on one or more other active DWSD contracts in which their performance is satisfactory to DWSD. In addition, Inland’s current EMR for 2021 is .99 which is a decrease from 2020 and in compliance with the 1.00 or less EMR requirement.
Note: The EMR is a metric that insurers use to calculate worker's compensation premiums; it takes into account the number of claims/injuries a company has had in the past and their corresponding costs, which is then compared against other firms in the industry.
3. Preserving the low bid delivers a savings value to DWSD.
Based on the information above, it is recommended that the contract be awarded to the lowest bidder, Inland Waters Pollution Control, Inc. Their clearances expire on 1/26/22.
SUMMARY
A. Contract No.: 6003539
B. Contractor: Inland Waters Pollution Control
C. Contract Term: 3 years - Anticipated start is January 2022
D. Contract Amount: $19,924,315.00
E. Fiscal Year (FY) Breakdown:
FY 21 - 22: $5,000,000
FY 22 - 23: $5,000,000
FY 23 - 24: $5,000,000
FY 24 - 25: $4,924,315
F. Funding Source I&E Funds
G. GL String: 5821-20243-497711-617900-900341-15802-0000-000000 - 100% (Sewer)
This proposed contract was presented to the DWSD Finance Committee on August 4, 2021. Per the DWSD procurement protocol, Mayoral Review will also be obtained.