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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 6006392 (WS-738) with Five Star Energy Services, LLC for Water System Improvement in Dexter-Linwood, Davison, and Buffalo-Charles Neighborhoods of the City of Detroit, for a total contract amount not-to-exceed $14,984,817.20 (100% reimbursable by ARPA funding) and a term of two 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 July 17, 2024
Item No. 2024-133
Contract No. 6006392 (WS-738)
Contractor: Five Star Energy Services, LLC
Address: 1581 E Racine Ave, Waukesha, WI 53186
Contract Amount: $14,984,817.20
Contract Term: 700 calendar days -10/1/24 - 9/1/26
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6006392 (Project WS-738)
Water System Improvement in Dexter-Linwood, Davison, and Buffalo-Charles Neighborhoods of the City of Detroit
Five Star Energy Services, LLC
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 6006392 (WS-738) with Five Star Energy Services, LLC for Water System Improvement in Dexter-Linwood, Davison, and Buffalo-Charles Neighborhoods of the City of Detroit, for a total contract amount not-to-exceed $14,984,817.20 (100% reimbursable by ARPA funding) and a term of two years. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
DWSD Project No. WS-738 is part of an ongoing distribution piping system water main replacement program. The work consists of replacing existing 8-inch diameter water mains at selected locations in Detroit that have a history of frequent breaks and high maintenance cost. Lead services forecasted for replacement are 534 and represent 31% percent of the contractor’s bid. The aggregate forecasted length of Lead services being replaced with copper within the public ROW is 11,000 linear feet and 4,500 linear feet on private properties. Additionally, Lead services of one inch and less in diameter are replaced with one-inch copper tube; existing Lead services of 1.5-inches and 2-inches diameter are replaced with copper tube of the same diameter.
This water main replacement contract is one of a continuing series of contracts that replace the old water mains in the City of Detroit having an extensive history of leaks and breaks. The new water mains and associated infrastructure will enhance the integrity of the DWSD Water System and ensure quality service to its customers. To protect the health and safety of our customers, existing Lead (Pb) water services are being replaced from the new water main all the way to the customer meter.
Proposed Contract 6006392, for Project WS-738, will continue the rehabilitation of the water main to provide better services to the citizens of Detroit and meet the needs of future City Development.
PROJECT OBJECTIVES / COSTS
The objective of the proposed Project WS-738 is to replace approximately 32,108 linear feet of existing four, eight, water main including Gate Valves, Fire Hydrants, and approximately 591 water existing services, and all appurtenances required to complete the work. The Contractor shall only be allowed to operate line valves up to and including sixteen inches in size under DWSD direct supervision.
The work also consists of Lead Service Line Replacement, both in the ROW and from curb box to the property water meter and will include the coordination between the Contractor and the DWSD Lead Service Line Team. Bidder to coordinate with Lead Service Line Team for interaction and communication with residents, delivery of notices, pitchers and filters to residents, and all other requirements as found in the specifications for Lead Service Line Replacement.
The contract costs are as follows:
|
Contract Price |
$ 13,964,817.20 |
|
Provisional Allowance |
$ 1,000,000.00 |
|
Contaminated Materials Allowance |
$ 20,000.00 |
|
Total Contract Price |
$ 14,984,817.20 |
PROCUREMENT METHOD
This procurement was competitively solicited through a Request for Bids (RFB) per Requisition 519361,
which was fully approved on 4/17/24. The RFB was advertised on the Michigan Inter-Governmental Trade
Network (MITN) BidNet website for 36 calendar days (4/26/24 - 5/31/24). MITN published this opportunity to 2,989 companies and 146 firms downloaded the bid package. In addition to posting on MITN, Procurement sent email notices to approximately 89 firms. Additional vendor outreach was performed by DWSD staff in an attempt to connect with firms that have not done business with DWSD in the past in an effort to expand the DWSD vendor pool. Three (3) bids were received:
|
Bidder |
Total Bid Price |
Equal. Applied *(N/A) |
Equal. Credit *(N/A) |
Equal. Bid Total *(N/A) |
|
Five Star Energy Services LLC |
$14,984,817.20 |
N/A |
N/A |
$14,984,817.20 |
|
LGC Global Inc. |
$16,937,394.81 |
N/A |
N/A |
$16,937,394.81 |
|
Major Contracting Group |
$19,420,258.00 |
N/A |
N/A |
$19,420,258.00 |
The Engineer’s Estimate for this work is $15,802,984.33.
After a thorough bid evaluation, it was identified that Five Star Energy Services, LLC had submitted the lowest bid. Five Star’s bid included all required information and was deemed responsive and responsible. Therefore, it is recommended that Five Star Energy Services, LLC be awarded the contract resulting from the RFB for WS-738 in the amount of $14,984,817.20 and for a term of two years. The bid tab, responsiveness evaluation, and the three bids were sent to the Construction and Engineering Division.
*No equalization credits were included in the publication for bids or factored as a methodology for evaluating bid responses.
Five Star Energy Services, LLC clearance expires on 3/21/25 and the formal contract document has been sent to vendor for review and signature.
SUMMARY
A. Contract No.: 6006392 (WS-738)
B. Contractor: Five Star Energy Services, LLC
C. Contract Term: 700 days - 10/1/24 - 9/01/26
D. Contract Amount: $14,984,817.20
E. Anticipated FY Breakdown: FY 24-25: $5,000,000.00
FY 25-26: $8,000,000.00
FY 26-27: $1,984,817.20
F. Funding Source: CIP Funds, with 100% of the funds reimbursable through
ARPA Funds
G. GL String: 5721-20244-487711-617900-900374-30129-0000-000000
- 100% Water
This proposed contract was presented to the BOWC Finance Subcommittee on July 8, 2024. Per DWSD procurement protocol, Mayoral Review and City Council approval will also be obtained.