Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6006772 with MacAllister Machinery Co. dba Michigan CAT; utilizing the MiDeal Contract # 240000000165, for the rental of as-needed Michigan Caterpillar Construction Equipment, for a total contract amount not-to-exceed $500,000.00 and a term of (4) four years (1) one month and (27) twenty-seven days. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of November 20, 2024
Item No.: 2024-226
Contract No.: 6006772
Contractor: MacAllister Machinery Co. dba Michigan CAT, 24800 Novi RD, Novi, MI 48375
Contract Amount: $500,000.00
Contract Term: 11/21/24 - 1/16/29
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6006772
Rental of as-needed Michigan Caterpillar Construction Equipment
MacAllister Machinery Co. dba Michigan CAT
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 6006772 with MacAllister Machinery Co. dba Michigan CAT; utilizing the MiDeal Contract # 240000000165, for the rental of as-needed Michigan Caterpillar Construction Equipment, for a total contract amount not-to-exceed $500,000.00 and a term of (4) four years (1) one month and (27) twenty-seven days. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
Detroit Water and Sewerage Department (DWSD) Meter Operations and Maintenance & Repair Divisions use equipment such as backhoes, excavators, mini-excavators, trailers, compressors, generators, towable light towers, dewatering pumps, trench shoring equipment, trailer mounted vacuum excavators (excluding Vactors), and other equipment on a regular basis to assist in the repair and maintenance of underground water and sewer assets.
Due to equipment failures and repair times of DWSD owned equipment, there may be an extended period when the ability to have construction equipment rented and delivered to DWSD in a timely manner is critical to maintain daily operations.
PROCUREMENT METHOD
The DWSD Procurement Policy allows for participation in cooperative purchasing agreements from other public purchasing consortiums of competitively solicited contracts. However, prior to utilizing a cooperative contract, the DWSD Procurement Policy requires Detroit Based Businesses (DBB) and Detroit Resident Businesses (DRB) be provided an exclusive opportunity to submit a bid that is equal to or less than the price of the cooperative purchase agreement, provided the DBB or DRB will meet or exceed all terms and conditions of the cooperative agreement.
To ensure compliance, DWSD Procurement published ITR #526049 on October 11, 2024, with a closing date of October 18, 2024, through the Michigan Intergovernmental Trade Network. The ITR was solicited to 78 suppliers, 11 suppliers viewed the ITR, and 1 supplier submitted an intent to bid, which generated no responsive, responsible bidders from a certified DBB and DRB business.
This rental agreement term will be for (4) four years (1) one month and (27) twenty-seven days, procured through Requisition #526049, which was approved by Budget on 9/27/24.
Contract 6006772 is being recommended for award to the MiDeal Cooperative Contractor, MacAllister Machinery Co. dba Michigan CAT, per the pricing, terms, and conditions of MiDeal Cooperative Contract #240000000165.
MacAllister’s clearances expire 7/19/25 and a formal contract document is not required.
SUMMARY:
A. Contract No.: 6006772
B. Contractor: MacAllister Machinery Co. dba Michigan CAT
C. Contract Term: 11/21/24 - 1/16/29
D. Contract Amount: $500,000.00
E. Projected Fiscal Year Expenditures:
FY25 - $120,223.98
FY26 - $120,223.98
FY27 - $120,223.98
FY28 - $139,328.06
F. Funding Source: O&M Funds
G. GL String:
5720-20167-482422-617900-000209-10731-0000-000000 - 50.5% Water
5820-20178-492422-617900-000230-15956-0000-000000 - 49.5% Sewer
Per the DWSD Procurement Policy, Mayoral Review approval will also be obtained.