Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Amendment No. 1 for DWSD Contract No. 6003374 (CS-1966) with e-Builder, Inc., for Construction Management Software; by adding $1,450,000.00, for an amended total contract amount not-to-exceed $2,035,000.00 and extending the term 5 years for a new term ending 6/30/29. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of July 17, 2024
Item No. 2024-127
Proposed Amendment No. 1
Contract No.: 6003374 (CS-1966)
Contractor: e-Builder, Inc.
Address: 13450 W. Sunrise Blvd., 6th Floor, Suite 600, Sunrise, FL 33323
Initial Contract Amount: $585,000.00
Proposed Amendment No. 1 Amount: $1,450,000.00
Proposed New Total Contract Amount: $2,035,000.00
Initial Contract Term: 7/1/21 - 6/30/24
Proposed Amendment No. 1 Extension: 7/1/24 - 6/30/29
Proposed New Contract Term: 7/1/21 - 6/30/29
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Proposed Amendment No. 1 to Contract No. 6003374 (CS-1966)
To add funds and time to the contract for Construction Management Software
e-Builder, 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. 1 for DWSD Contract No. 6003374 (CS-1966) with e-Builder, Inc., for Construction Management Software; by adding $1,450,000.00, for an amended total contract amount not-to-exceed $2,035,000.00 and extending the term 5 years for a new term ending 6/30/29. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND & JUSTIFICATION
In July 2017, DWSD awarded the CIPMO Contract 6000777 (Project# CS-1812) to AECOM after completing the competitive qualification-based RFP process for a five-year period. All the programmatic components that comprise a capital delivery Program Management Office (PMO) were specified within the scope of work.
As of July 2020, all the software components that were initially set up under the CIPMO (CS-1812) project are operational, functioning to plan; and DWSD is executing contracts to rehabilitate infrastructure and effectively improve service levels to Detroit residents. Effective July 2021, which is year 4 of the CIPMO contract, DWSD transitioned to take direct ownership of the license agreements for CityWorks, E-Builder, Innovyze and Primavera as specified in the contract. These software license costs were removed from the CS-1812 contract.
AECOM and DWSD negotiated price points for these four software vendors that was beneficial to DWSD to retain, and all parties agreed to transfer the active software agreement to DWSD with no additional fees. When the balance of the 5-year term expires for CS-1812, DWSD will either seek BOWC approvals for amendments or replacement contracts.
e-Builder, Inc. is the sole and exclusive developer, owner and distributor of e-Builder Construction Management Software packages. e-Builder Construction Management Software is a proprietary software package designed and sold exclusively by e-Builder. e-Builder Construction Management Software e-Builder Enterprise is a is a fully intergraded, owner-centric, cloud-based construction software focused on meeting the needs of owners and construction professionals. It is an end-to-end Project Management Information Solution (PMIS) delivering outcomes from capital planning and design through construction. It is an enterprise construction program management solution that manages capital program cost, schedule and documents within a single data environment, combined with standardized workflow process reporting capabilities will maximize data control and performance transparency and reduce risks for DWSD. By providing a central repository for all data and project delivery processes, the system allows DWSD to measure and manage every step of our projects from planning and design, through procurement and construction, facilitate consistent implementation of best management practices and become a knowledgebase for improving future performance.
The Construction Management software package was acquired as a single source contract under CIPMO (CS-1812) with e-Builder, Inc., including all Suite versions, Viewers, updates, upgrades and Annual Maintenance. DWSD acquired the software licenses directly from AECOM, who secured the software licenses from the Original Software Manufacturer. The software license agreement gives DWSD, the licensee a non-exclusive, non-transferable right to use software.
Proposed Amendment # 1 includes annual license fees for an unlimited number of users and contingency funding more additional modules. The amended funding also includes an estimated price escalation of 3-4% annually, per the existing contract term. DWSD is working to implement additional integrations and functionalities which did not exist in the prior term agreement. The annual subscription includes Maintenance Releases, Technical Support and Software Updates.
PROCUREMENT METHOD
The DWSD IT Department submitted requisition #489452, that was approved on 6/14/21, requesting a novation to commit to taking over the CIPMO contract with e-Builder, Inc., for three (3) years for a not-to-exceed amount of $585,000. This contract is being requested as a single source, Exception to Competitive Solicitation, due to e-Builder, Inc. being the proprietary software package designed and sold exclusively by e-Builder vendor. The Exception to Competitive Solicitation Form was approved on April 12, 2021, by Director Gary Brown. The Contract was also approved by the Mayor on June 16, 2021.
Proposed Amendment 1 was submitted through requisition #521188, which was approved by Budget on 5/30/24. This Amendment requests to extend time through 6/30/29 (5 years) and add $1,450,000.00 in funding. There will be no change in scope or terms and conditions.
e-Builder, Inc. clearances expire 4/10/25. A formal amended contract document has been sent to the vendor for signature.
SUMMARY
A. Contract No.: 6003374 (CS-1966)
B. Initial Contract Amount: $585,000.00
C. Proposed Amendment No. 2 Amount: $1,450,000.00
D. Proposed New Total Contract Amount: $2,035,000.00
E. Initial Contract Term: 7/1/21 - 6/30/24 (3 years)
F. Proposed Amendment No. 1 Extension: 7/1/24 - 6/30/29 (5 years)
G. Proposed New Contract Term: 7/1/21 - 6/30/29
H. Funding Source: O&M Funds
I. GL String(s):
5720-20168-483301-622302-000205-10790-0000-000000 - 38.2% Water
5820-20179-493301-622302-000226-15805-0000-000000 - 61.8 % Sewer
J. Projected Fiscal Year (FY) Contract Expenditures:
FY 24/25: $290,000.00
FY 24/25: $290,000.00
FY 24/25: $290,000.00
FY 24/25: $290,000.00
FY 24/25: $290,000.00
This proposed amendment was presented to the DWSD Finance Sub Committee on July 8, 2024. Per the DWSD Procurement Policy, this will also be sent for Mayoral review and approval.