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The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Amendment No. 1 to DWSD Contract 6005050 (WS-735), with Five Star Energy Services, for Full Lead Service Line Replacements at Various Locations Throughout Detroit, by adding $900,000.00 in funding, and 113 days, for a new amended contract amount not-to-exceed $25,602,600.00 and a new expiring term of 6/30/26. No change to scope of work or contract terms and conditions. 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 January 21, 2026
Item No. 2026-14
Proposed Amendment No. 1
Contract No.: 6005050 (WS-735)
Contractor: Five Star Energy Services, Inc.
Address: West 228th St 7055 Enterprise Dr, Suite 2, Big Bend, WI 53103
Initial Contract Amount: $24,702,600.00
Proposed Contract Amount: $900,000.00
Proposed New Total Contract Amount: $25,602,600.00
Initial Contract Term: 3/10/23 - 3/9/26
Proposed Amended Contract Term: 3/10/26 - 6/30/26 (+ 113 days)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed Amendment No. 1 for Contract 6005050 (WS-735)
Full Lead Service Line Replacements at Various Locations Throughout Detroit
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 Amendment No. 1 to DWSD Contract 6005050 (WS-735), with Five Star Energy Services, for Full Lead Service Line Replacements at Various Locations Throughout Detroit, by adding $900,000.00 in funding, and 113 days, for a new amended contract amount not-to-exceed $25,602,600.00 and a new expiring term of 6/30/26. No change to scope of work or contract terms and conditions. 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 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 of the outstanding Lead services.
The work consists of replacing Lead water services of up to two inches in diameter with copper services and road/curb boxes throughout the City of Detroit. The locations have been identified 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 cost; if Lead, then the contractor will coordinate 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.
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.
Proposed Amendment No. 1 consists of additional funding approved by EGLE to support DWSD’s effort to continue replacing Lead Service Lines in neighborhoods which have been identified by density of housing built prior to 1945, where a significant number of children and seniors reside, and where there may be a potentially high population of low-income households.
PROCUREMENT METHOD
The Initial Contract was competitively solicited through a Request for Bids (RFB) per Requisition 502647, which was fully approved on 11/21/22. The RFB was advertised on the Michigan Inter-Governmental Trade Network (MITN) BidNet website for 50 calendar days (11/22/22 - 1/11/23). MITN published this opportunity to 1,408 companies and 94 firms downloaded the bid package. In addition to posting on MITN, Procurement sent email notices to approximately 90 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.
Six bids were received:
|
Bidder |
Total Bid Price |
Equal. Applied |
Equal. Credit |
Equal. Bid Total |
|
Five Star Energy Services |
$24,702,600 |
N/A |
N/A |
$24,702,600 |
|
Major Contracting |
$29,970,500 |
DBB - 1% |
($299,705) |
$29,670,795 |
|
Bidigare Contractors |
$36,199,850 |
N/A |
N/A |
$36,199,850 |
|
Lakeshore Global Corp. |
$36,999,000 |
DBB - 1% |
($369,990) |
$36,629,010 |
|
GDI Services |
$39,482,813 |
N/A |
N/A |
$39,482,813 |
|
Metro Pipe & Drain |
$67,903,400 |
N/A |
N/A |
$67,903,400 |
As the apparent equalized low bidder, Five Star Energy Services, Inc.’s bid was evaluated first. Five Star’s bid included all required information and was deemed responsive and responsible. Therefore, it is recommended that Five Star Energy Services, Inc. be awarded the contract resulting from the RFB for WS-735 in the amount of $25,000,000 and for a term of three years. The bid tab, responsiveness evaluation, equalization analysis, and the six bids were sent to the Construction and Engineering Division.
Proposed Amendment No. 1 was submitted through requisition #543323, which was approved by Budget on 1/7/26. This Amendment request is to add $900,000.00 in funding, to the existing contract, to enable the department to continue replacing additional lead service lines throughout various areas within the city of Detroit.
Five Star’s clearances expire on 6/17/26 and the formal amended contract document has been sent to Five Star for review and signature.
SUMMARY
A. Contract No.: 6005050 (WS-735)
B. Contractor: Five Star Energy Services, Inc.
C. Initial Contract Term: 3/10/2023 - 3/9/2026
D. Proposed Amended Contract Term: 3/10/2026 - 6/30/2026 (+113 days)
E. Initial Contract Amount: $24,702,600.00
F. Proposed Amendment No. 1 Amount: $900,000.00
G. Proposed New Total Contract Amount: $25,602,600.00
H. Funding Source: CIP (ARPA reimbursable)
I. GL String: 5721-20244-487711-617900-900355-30129-0000-000000
- 100% Water
This amendment was presented to the DWSD Finance Committee on January 13, 2026. Per DWSD Procurement Policy, Mayoral approval will also be obtained.