Detroit Water and Sewerage Department
File #: 2024-251    Version: 1 Name:
Type: Contract Amendment Status: Passed
In control: Financial Services
On agenda: 12/18/2024 Final action: 12/18/2024
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. 6004866 with Major Contracting Group, Inc. to provide (As Needed) Inspection & Repair of Cave-In Sewers In the City of Detroit (Project WS-965); by adding $1,500,000.00, for an amended total contract amount not-to-exceed $5,784,261.00 and extending the term by 135 days for a new term ending 6/30/25. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Indexes: Board of Water Commissioners, Finance Committee

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. 6004866 with Major Contracting Group, Inc. to provide (As Needed) Inspection & Repair of Cave-In Sewers In the City of Detroit (Project WS-965); by adding $1,500,000.00, for an amended total contract amount not-to-exceed $5,784,261.00 and extending the term by 135 days for a new term ending 6/30/25. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.

 

Body

Agenda of December 18, 2024

Item No. 2024-251

Proposed Amendment No. 1

Contract No.: 6004866 (WS-965)

Contractor: Major Contracting Group, Inc.

Address: 12222 Greenfield Rd., Detroit, MI 48227

Current Contract Amount: $4,284,261.00

Proposed Amendment No. 1 Amount: $1,500,000.00

Proposed New Total Contract Amount: $5,784,261.00

Current Contract Term: 1/17/23 - 2/16/25

Proposed Amendment No. 1 Extension: 2/17/25 - 6/30/25

Proposed New Contract Term: 1/17/23 - 6/30/25

 

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. 6004866 (WS-965)

To add funds and time to the contract to continued Inspection & Repair of Cave-In Sewers (As Needed) In the City of Detroit.

Major Contracting Group, 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. 6004866 with Major Contracting Group, Inc. to provide (As Needed) Inspection & Repair of Cave-In Sewers In the City of Detroit (Project WS-965); by adding $1,500,000.00, for an amended total contract amount not-to-exceed $5,784,261.00 and extending the term by 135 days for a new term ending 6/30/25. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.

 

BACKGROUND & JUSTIFICATION

 

During the June Heavy Rain Events of 2021, the City of Detroit experienced a significant increase in sinkholes and cave-ins throughout the City of Detroit. Sinkholes are caused when the land above collapses or sinks into cavities or depressions. During the Summer 2021 Rain Events, DWSD’s transmission was overtaxed, due to the heavy rainfall in a short amount of time. DWSD needs to repair 91 sinkholes that were caused by heavy rain and flooding throughout the City of Detroit. The Contractor will perform CCTV, sewer clean and repairing of the sinkholes throughout the City of Detroit. During the repair process, dye tests via CCTV will be done to determine if any dye shows inside of DWSD sewer assets to determine liability.

 

Proposed Amendment #1 is to extend time and increase contract funding for Sewer Inspection, cave-ins & point repair workload demand. 

 

PROCUREMENT METHOD

 

This contract was initiated through requisition #500218 by DWSD Field Engineering and was approved by Budget on 8/19/22. This contract was procured as Competitive Solicitation and approved by the Director on 11/29/22. 

 

Proposed Amendment 1 was submitted through requisition #527080, which was approved by Budget on 10/22/24. This Amendment requests to extend time through 6/30/25 (135 days) and add $1,500,000.00 in funding. There will be no change in scope or terms and conditions.

 

Major Contracting Group, Inc.’s clearances expire 6/27/25. A formal amended contract document has been sent to the vendor for signature. 

 

SUMMARY

 

A.                     Contract No.:                                                                                                         6004866 (WS-965)

B.                     Contractor:                                                                                                         Major Contracting Group, Inc.

C.                     Current Contract Amount:                                                               $4,284,261.00

D.                     Proposed Amendment No. 1 Amount:                           $1,500,000.00

E.                     Proposed New Total Contract Amount:                     $5,784,261.00

F.                     Current Contract Term:                                                               1/17/23 - 2/16/25

G.                     Proposed Amendment No. 1 Extension:                     2/17/25 - 6/30/25

H.                     Proposed New Contract Term:                                          1/17/23 - 6/30/25

I.                     Funding Source:                                                                                    CIP / I&E Funds

J.                     GL String(s):

            5821-20243-497711-617900-900353-30129-0000-000000 - 100% Sewer

           

K.                     Projected Fiscal Year (FY) Contract Expenditures:

                                                                                    FY 25: $1,500,000.00

                                                                                                                                                                        

This proposed amendment was presented to the DWSD Finance Committee on December 4, 2024.  Per the DWSD Procurement Policy, Mayoral Review will also be obtained.