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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 6006536 with Major Contracting Group, Inc. and Gayanga Co. (Joint Venture), for As Needed Water Main Repairs (Project WS-744A), for a total contract amount not-to-exceed $34,962,900.00 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.
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Agenda of November 20, 2024
Item No. 2024-230
Contract No. 6006536 (WS-744A)
JV Contractor: Major Contracting Group, Inc., 12222 Greenfield Rd, Detroit, MI 48227 JV Contractor: Gayanga Co., 7700 Second Ave., Detroit, MI 48202
Contract Amount: $34,962,900.00
Contract Term: 1/1/2025 - 12/31/2027 (3 years)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract 6006536 (WS-744A)
As Needed Water Main Repairs
Major Contracting Group, Inc.
Gayanga Co.
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 DWSD Contract 6006536 with Major Contracting Group, Inc. and Gayanga Co. (Joint Venture), for As Needed Water Main Repairs (Project WS-744A), for a total contract amount not-to-exceed $34,962,900.00 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
During wintertime, the Detroit Water and Sewerage Department (DWSD) experiences a significant increase in the number of water main breaks and leaks in its distribution system, which maintenance finds difficult to repair on a timely basis. This contract’s primary purpose is to provide for emergency / as-needed repair of various sized water mains during critical periods of time to supplement DWSD’s efforts to repair water mains using its own forces.
DWSD is the first responder for all water main breaks in the City of Detroit as agreed upon in the Shared Services Agreement between DWSD and the Great Lakes Water Authority (GLWA). DWSD has also allocated $1,000,000.00 in this contract as an allowance to repair transmission mains (diameter of 24-inches and greater) that have been transferred back to DWSD. If repairs to DWSD transmission mains are required, this work would be performed on a time and materials basis. Additionally, $1,020,000.00 of the total bid prices includes allowances for contaminated materials and unforeseen conditions.
The work primarily consists of repairing water mains on an emergency as-needed basis. It also includes the emergency replacement of hydrants, valves, stop boxes, road gate boxes, and other appurtenances, including excavation and backfilling, snow and ice removal, salting down areas and permanent restoration of the site.
On average, DWSD experiences approximately 1,500 water main breaks annually on a system that is, on average, 95-years old. DWSD Operations intends on repairing approximately 40% of these breaks using internal resources. This contract also provides for restoration of surface improvements impacted by the breaks and repair work, which will significantly shorten the time frame for repairs to streets, sidewalks, driveways, etc.
This proposed DWSD Contract for Project WS-744A is part of DWSD’s on-going maintenance work and will replace the existing Project WS-719 upon expiration.
PROCUREMENT METHOD
This procurement was competitively solicited through a Request for Bids (RFB) per Requisition 520748, which was fully approved on 7/1/24. The RFB was advertised on the Michigan Inter-Governmental Trade Network (MITN) BidNet website for 34 calendar days 8/20/24 - 9/25/24. MITN published this opportunity to 1003 companies and 48 firms downloaded the bid package. Three (3) bids were received:
|
Bidder |
Bid Total |
Equalizations |
Total |
|
Major Contracting Group/ Gayanga Co. (JV) |
$34,962,900.00 |
($2,097,774.00) |
$32,865,126.00 |
|
LGC Global, Inc. |
$33,864,983.98 |
($338,649.84) |
$33,526,334.14 |
A bid from Intertek-PSI was deemed non-responsive because the bid failed to provide complete pricing for the project.
After the bids were reviewed, the lowest equalized bidder is the Major Contracting Group, Inc./Gayanga Company (JV).; their bid included all required information and was deemed responsive and responsible. Major Contracting Group, Inc./Gayanga Company is a Joint Venture. Therefore, it is recommended that the Major Contracting Group, Inc./Gayanga Company (JV) be awarded the contract resulting from the RFB for WS-744A in the amount of $34,962,900.00 and for a term of three years. The bid tab, responsiveness evaluation, equalization analysis, and bid was sent to the Construction and Engineering Division.
Major Contracting Group, Inc holds (2) Detroit Business Certifications as: Detroit Based Business and Detroit Headquartered Business.
Gayanga Co. holds (5) Detroit Business Certifications: Detroit Based Business, Detroit Headquartered Business, Detroit Small Business, Detroit Resident Based Business and Minority-Owned Business Enterprise.
Major Contracting Group, Inc. clearances expire on 6/27/25 and Gayanga Company’s clearances expire on 2/12/25 respectively and the formal contract document has been sent to the vendor for review and signature
SUMMARY
A. Contract No.: 6006536 (WS-744A)
B. Contractor: Major Contracting Group, Inc./ Gayanga Co.
C. Anticipated Contract Term: 1/1/2025 - 12/31/2027 (3 years)
D. Contract Amount: $34,962,900.00
E. Anticipated FY Breakdown:
FY 24-25: $9,000,000.00
FY 25-26: $11,000,000.00
FY 26-27: $11,000,000.00
FY 27-28: $3,962,900.00
F. Funding Source: CIP Funds
G. GL String: 5721-20244-487711-617900-900399-10792-0000-000000
- 100% Water
Per DWSD procurement protocol, Mayoral Review and City Council approval will also be obtained.