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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 6003661 with Inland Waters Pollution Control, Inc. for Sewer Improvements in Riverdale Neighborhood (Project DWS-917) for a total contract amount not-to-exceed $7,708,184.75 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 August 18, 2021
Item No. 21-0559
Contract No. 6003661 (DWS-917)
Contractor: Inland Waters Pollution Control, Inc. (DBB)
Address: 4086 Michigan Avenue, Detroit, MI 48210
Contract Amount: $7,708,184.75
Contract Term: 730 Calendar Days (2 years) - Anticipated Start Date of October 4, 2021
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6003661 / Project No. DWS-917
Sewer Improvements in Riverdale Neighborhood
MOTION
Upon recommendation of Mamata Burgi, Operations Resource Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6003661 with Inland Waters Pollution Control, Inc. for Sewer Improvements in Riverdale Neighborhood (Project DWS-917) for a total contract amount not-to-exceed $7,708,184.75 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.
BACKGROUND / JUSTIFICATION
The existing DWSD sewer system within the City limits (approximately 3,000 miles of sewers ranging from 8” thru 180”) is generally older than 90 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. Sewer rehabilitation services are needed to repair plugged, damaged, and collapsed sewers to avoid basement flooding, and maintain the flows within the wastewater collection system.
Proposed Contract No. DWS-917 (Sewer Improvements in Riverdale Neighborhood) is to provide in-place rehabilitation and open cut repair of selected sewers primarily using the procedures, methods, and equipment of the cured-in-place pipe lining processes. The work will take place in the Riverdale neighborhood. The Capital Improvement Management Organization (CIPMO) team has performed a sewer condition assessment in this neighborhood and presented a proposed scope of work for each intervention in the bidding documents.
DWSD will continue the rehabilitation of sewers to provide better services to citizens of Detroit and meet the needs of future City Development. The proposed rehabilitation/lining processes will extend the life of a sewer by at least 50 years.
PROJECT OBJECTIVES / COSTS
The objective of the proposed Contract 6003661 (DWS-917) is to rehabilitate and replace approximately 53,100 LF of 8-inch to 36-inch sewer and manholes by full segment replacement, external point repairs, trenchless point repairs, and CIPP lining. The work also includes approximately 3,522 LF of 8-inch to 36-inch of sewer cleaning without subsequent rehabilitation. In addition, the work includes the installation of approximately 12 new manholes, 2 new catch basins, and cleaning and repair of 227 manholes.
This is a State of Michigan State Revolving Fund (SRF) project and Federal requirements must be met for Disadvantaged Business Enterprises (DBE) and Davis-Bacon. With regard to DBE participation, prime contractors who bid on SRF-funded 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 SRF 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 SRF program requirements.
The contract costs are as follows:
Contract Price $8,434,900.00
Contaminated Material Allowance $20,000.00
Provisional Allowance for Unforeseen Conditions $844,000.00
Total Contract Price $9,298,990.00
PROCUREMENT METHOD
This procurement was competitively solicited through a Request for Bids (RFB) per Requisition 486274, which was approved on 2/8/21. The RFB was advertised on the Michigan Inter-Governmental Trade Network (MITN) BidNet website for 38 calendar days (5/4/21 - 6/11/21). MITN published this opportunity to 752 companies and 80 firms downloaded the bid package. In addition to posting on MITN, Procurement also sent email notices to approximately 90 firms.
Due to the change in specifications from the last time this was bid out, the Pre-Bid meeting held for RFB DWS-917 was mandatory and only bidders that attended were allowed to submit a bid as a Prime Contractor. All bids received were from vendors that attended the mandatory Pre-Bid meeting.
The Engineer’s Estimate for this work is $9,284,090.00.
Three (3) bids were received:
|
Bidder |
Bid Price |
Equalizations |
Equal Credits |
Equalized Total Bids |
|
Inland Waters |
$7,708,184.75 |
DBB - 1% |
($77,081.85) |
$7,631,102.90 |
|
Lakeshore Global |
$8,100,532.00 |
DBB - 1% |
($81,005.32) |
$8,019,526.68 |
|
Major Cement Co. |
$9,960,606.07 |
DBB - 1% |
($99,606.06) |
$9,861,000.01 |
Note: $1,035,000 of the total bid prices includes allowances for permits, contaminated materials and unforeseen conditions.
As the apparent low bidder, Procurement first reviewed the bid from Inland Waters. Inland submitted all required information and met all minimum requirements except for having an Experience Modification Rate (EMR) of 1.04 for the year 2020, which is above the requirement of 1.0 or below as listed in the RFB, which would disqualify them.
Therefore, Procurement reviewed Lakeshore’s bid next, followed by Major Cement’s bid. Both bidders used subcontractors to meet the technical minimum qualifications, which is not allowed based on how the RFB was written, disqualifying both Lakeshore and Major Cement.
Because all three (3) 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 and Major Cement do not meet a majority of the minimum requires as they are using subcontractors to meet the minimum qualifications required by the Prime as 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 equalized responsive bidder, Inland Waters Pollution Control, Inc. Inland Waters clearances expire on 1/26/22.
SUMMARY
A. Contract No.: 6003661 (DWS-917)
B. Contractor: Inland Waters Pollution Control, Inc.
C. Contract Term: 730 days (2 years) - Anticipated start date 10/4/21
D. Contract Amount: $7,708,184.75
E. Fiscal Year (FY) Breakdown: FY 21-22: $2,890,569.28
FY 22-23: $3,854,092.38
FY 23-24: $ 963,523.09
F. Funding Source: Drinking Water State Revolving Funds comprised of:
77.5% Federal Funds
22.5% State Funds
G. GL String (Water): 5831-20310-497800-617900-900337-30129-0000-000000 - 100% Sewer
This contract was presented to the DWSD Finance Subcommittee on August 4, 2021. Per the DWSD procurement protocol, Mayoral review will also be obtained.