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The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Amendment 1 to DWSD Emergency Sourced Contract No. 6004249 (WS-734) with Major Contracting Group, Inc. for On-Call Backup Emergency Water Main Repair Services - requesting to add $500,000, for a new total amended contract amount of $950,000; and extend term by 6 months, through 12/31/22. 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 July 18, 2022
Item No. 22-0867
Proposed Amendment 1
Contract No: 6004249 / WS-734
Contractor: Major Contracting Group, Inc. (DBB), 15430 Dale, Detroit, MI 48223
Initial Contract Amount: $450,000
Amendment 1 Amount: $500,000
Proposed Total Amended Amount: $950,000
Initial Term: 1/28/22 - 6/30/22
Proposed Extension: 7/1/22 - 12/31/22 (6 months)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Proposed DWSD Amendment 1 to Contract No. 6004249 / WS-734
To add funds and extend term by 6 months
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 1 to DWSD Emergency Sourced Contract No. 6004249 (WS-734) with Major Contracting Group, Inc. for On-Call Backup Emergency Water Main Repair Services - requesting to add $500,000, for a new total amended contract amount of $950,000; and extend term by 6 months, through 12/31/22. 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 was initiated as a backup to Contract WS-719 for On-Call Water Main Repairs that was awarded to Lakeshore Global Corporation in December 2021. However, at the height of the water main break season in January 2022, Lakeshore Global Corporation informed DWSD that they did not have adequate staffing to address the growing number of water main breaks and the subsequent freezing of roads, walkways and other unsafe conditions. Therefore, this contract was put in place through an emergency exception to competitive solicitation to assist with the workload.
Water main breaks/leaks often happen in extreme hot or cold temperatures, which results in unsafe conditions for Detroit residents if not addressed immediately. DWSD has deployed every available employee to water main breaks repairs but does not have enough staff or contractor crews to handle the current workload.
With the colder temperatures the number of breaks is equal to or greater than the number DWSD can fix daily, and at the time this contract was initiated, DWSD had a backlog of 88 water main breaks, plus several leaking services, leaking hydrants and vacant floodings that needed to be addressed. With the warmer temperature peaking, the number of breaks has again reached a capacity that makes it challenging for DWSD to fix daily. There is a current backlog of 61 water main breaks which need to be addressed. Therefore, an emergency contract with Major Contracting Group, Inc. was procured to provide back up services to assist with the workload for DWSD and Lakeshore Global.
DWSD Operations is requesting Amendment 1 to add $500,000 and to extend the term by six months, through 12/31/22. In the meantime, Operations and Procurement will be working together to solicit for additional backup contracts to replace this emergency contract.
PROCUREMENT METHOD - EMERGENCY EXCEPTION
This contract was initiated as a backup to Contract WS-719, which at the height of the water main break season, the Contractor, Lakeshore Global Corporation, did not have adequate staffing to address the growing number of water main breaks and the subsequent freezing of roads and walkways. Therefore, this contract was put in place to assist with the work.
Director Brown approved Contract 6004249 (WS-734) on 1/28/22 as an emergency exception to competitive solicitation per Item 5 of the DWSD Procurement Policy, which states that competitive competition is not required when public exigencies require the immediate delivery of articles or performance of services or when there exists a threat to public health, welfare or safety or to prevent an imminent violation of a required environmental permit or Administrative Consent Order under emergency conditions.
Major’s Data Consulting Group’s clearances expire 11/24/22.
SUMMARY
A. Contract No.: 6004249 / WS-734
B. Original Contract Term: 1/28/22 - 06/30/22
C. 1st Amendment Term 07/01/22 - 12/31/22
D. Initial Contract Amount: $450,000
E. Funding Source: I&E Funds
F. Anticipated FY Spend: FY 22-23: $450,000
FY 23-24: $500,000
G. GL String(s):
5721-20244-487711-617900-900276-10792-0000-000000 - 100% Water
This amendment was approved by the Finance Subcommittee meeting on July 14, 2022. Per DWSD procurement protocol, Mayoral Review will also be obtained.