Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contracts 6006785 with Major Contracting Group, and 6006786 with LGC Global, Inc., and 6006788 With Five Star Energy Services; for Full Lead Service Line Replacements at Various Locations Throughout Detroit (Project WS-749), for a combined total contract amount not-to-exceed $30,000,000 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.
Body
Agenda of October 24, 2024
Item No. 2024-215
Term of ALL Contracts: 730 calendar days (2 years)
Combined Total Not-to-Exceed Amount of ALL 3 Contracts: $30,000,000
Contract No.: 6006785
Contractor: Major Contracting Group (DBH, DBB)
Address: 1222 Greenfield Road, Detroit MI 48227
Contract Amount: $10,000,000.00
Contract No.: 6006786
Contractor: LGC Global, Inc. (DHB, DBB)
Address: 7310 Woodward Avenue, Suite 500, Detroit, MI 48202
Contract Amount: $10,000,000.00
Contract No.: 6006788
Contractor: Five Star Energy Services, Inc.
Address: 1581 E. Racine Ave., Waukesha, WI 53186
Contract Amount: $10,000,000.00
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contracts for Full Lead Service Line Replacements at Various Locations Throughout Detroit (Project WS-749)
6006785 Major Contracting Group
6006786 LGC Global, Inc.
6006788 Five Star Energy Services, 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 DWSD Contracts 6006785 with Major Contracting Group, and 6006786 with LGC Global, Inc., and 6006788 With Five Star Energy Services; for Full Lead Service Line Replacements at Various Locations Throughout Detroit (Project WS-749), for a combined total contract amount not-to-exceed $30,000,000 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
Detroit has an estimated 80,000 lead service lines (LSLs), connected to an aged and historically under-maintained water network, with high incidences of water main breaks. Main breaks and service leaks frequently affect LSLs and require disconnecting the LSL to make a repair. As part of the DWSD Capital Improvement Program (CIP) for the replacement of water mains, Lead (Pb) service lines are converted to new copper service lines along with the provision of water filters and pitchers to the customer for the benefits the public health and safety. Given the potential negative health impacts due to Lead service lines to water system customers, DWSD has been undertaking efforts in the replacement of these services. In addition to the replacement of LSLs along with water main replacement work, DWSD is undertaking dedicated LSL replacement from the existing water main to the customer meter without water main replacement.
Per EPA and MI-EGLE requirements, Lead services are to be replaced from the water main all the way to the customer meter within their property (residence, commercial space, other). Normally, Lead replacements are integrated into water main replacement capital work, but not all water mains can be replaced over the next handful of years to capture all the outstanding Lead services. Under Contract WS-749, DWSD proposes to develop a dedicated Lead water service replacement project whose scope does not have the necessity of a full water main replacement. Through this contract, up to 3000 Lead services will be replaced within two years with a combination of excavation and directional boring.
The work consists of replacing Lead water services of up to 1.5 inches in diameter with copper services and road/curb boxes at up to 3000 locations throughout the City of Detroit. These locations are not known at this time and services will be located through hydro excavation work by the contractor as part of the project scope. The space near the shutoff box at the sidewalk will be excavated to the depth of the existing water service and visual confirmation made of Lead or copper in place. If a copper service is found, then the site will be backfilled and restored at established unit costs; if Lead, then the contractor will coordinate its replacement. Also, other locations of LSL work may be assigned to the Contractor identified by the Engineer and assigned to the Contractor on an “as-needed” basis pursuant to the terms and conditions of the Contract Documents.
There is no guarantee as to the number of replacement locations that will be assigned. However, about 3000 Lead service line replacements are expected to be assigned throughout the life of this Contract. No design drawings will be provided by DWSD. The contractor will be responsible for following the DWSD Full Lead Service Line Replacement (FLSLR) Standard Operating Procedures (SOPs) and Lead Water Services specification to efficiently, effectively, and safely remove and replace LSLs.
PROJECT OBJECTIVES / COSTS
The work is to be completed within 730 days. The full-service line replacement involves replacing the existing Lead service with new copper service line, installing new curb stop and curb box, and restoration of all lawn/pavement disturbed by the individual site work. The pay item description shall be as follows:
a. The costs of materials, labor, equipment, and all other incidental materials necessary for the removal and replacement of Lead water services lines on the private side from the curb stop to the water meter, including coordination with customer, saw cutting, pavement removal, driveway removal, sidewalk removal, curb removal, excavation, excavation support, dewatering excavation, hauling, disposal, bedding, provision of clean backfill, compaction, copper services, wax tape, and all attendant water service installation items required per the Specifications shall be included in the cost of the pay item.
b. Restoration for full reinstatement of all items including, but not limited to, aggregate base, concrete base, paving, curb, sidewalk, seeding, and sod will be paid for as a per-service arrangement.
c. Installation of water service from the existing water main, through the curb stop, and onward to the property water meter will include the furnishing, installation, and connection of a new curb stop, road box, and all other appurtenances.
d. Lead service line replacement at each property will include the coordination between the Contractor and the DWSD Lead Service Team. Contractor to coordinate with Lead Service Team for interaction and communication with residents, delivery of notices to residents, and all other requirements as found in the Specifications for Lead Service Line Replacement and will be included in the cost of this item.
PROCUREMENT METHOD
This procurement was competitively solicited through a Request for Proposals (RFP) per Requisition 526591, which was fully approved by Budget on 10/10/24. The RFP was advertised on the Michigan Inter-Governmental Trade Network (MITN) BidNet website for 14 calendar days (9/25/24 - 10/9/24). MITN published this opportunity to 11 companies and 8 firms downloaded the proposal package.
The Engineer’s Estimate for this work is $30,000,000.
The Evaluation Committee was comprised of two Engineers from the Engineering Office, and a Manager from Meter Operations. Evaluations were based on the following criteria:
• Ability to perform work
• Work plan & organization
• Staff Experience
Six proposals were received. Each proposal was evaluated by Procurement with respect to responsiveness and responsibility. Each voting member of the Evaluation Committee independently reviewed, evaluated, and scored the proposals based on the criteria listed above. Procurement took the scores and tallied up the rankings based on the scores. Procurement then determined the highest ranked responsive and responsible Proposer.
|
Rank |
Proposer |
Score |
|
1 |
Major Contracting |
4633.70 |
|
2 |
LGC Global |
4513.70 |
|
3 |
Five Star Energy |
3915.00 |
|
4 |
Murphy Pipeline |
3655.20 |
|
5 |
Inner City Contracting |
3104.50 |
|
6 |
Bidigare Contractors |
1468.80 |
Simultaneously to technical evaluation, Procurement conducted pricing negotiations. DWSD came to agreement with the top three ranked vendors. The Evaluation Committee and Procurement recommends the highest-ranked responsive & responsible Proposers Major Contracting Group, LGC Global, Inc., and Five Star Energy Services for a term of two (2) years and a total not-to-exceed contract amount of $30,000,000.
Major Contracting Group’s clearances expire on 6/27/25, LGC Global’s clearances expires on 12/6/24 and Five Star Energy Services clearances expire on 3/21/25.
SUMMARY
A. Contract No.: 6006785
B. Contractor: Major Contracting Group
C. Contract Amount: $10,000,000.00
D. Contract No.: 6006786
E. Contractor: LGC Global, Inc.
F. Contract Amount: $10,000,000.00
G. Contract No.: 6006788
H. Contractor: Five Star Energy Services, Inc.
I. Contract Amount: $10,000,000.00
J. Terms of ALL Contracts: 730 days (2 years)
K. Combined Total Contract Amount: $30,000,000.00
L. Anticipated FY Breakdown: FY 24-25: $9,000,000.00
FY 25-26: $15,000,000.00
FY 26-27: $6,000,000.00
M. Funding Source: DWSD Bond Funding
N. GL String: 5721-20244-487711-617900-900355-30129-0000-000000
- 100% Water
Per DWSD procurement protocol, Mayoral review and City Council approvals will also be obtained.