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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. 2 to DWSD Contract 6004388 with Johnson Controls, Inc., to continue providing HVAC Equipment, Parts, Repairs and Preventative Maintenance Services, utilizing a Sourcewell-NJPA Cooperative Agreement #070121-JHN; by adding $1,000,000.00, for an amended total contract amount not-to-exceed $5,961,508.00 and extending the term for an additional 13 months and 12 days for a new term ending 8/12/26. 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 June 18, 2025
Item No.: 2025-112
Proposed Amendment No. 2
Contract No.: 6004388
Contractor: Johnson Controls, Inc., 2875 Highway Meadow Circle, Auburn Hills, MI 48326
Current Contract Amount: $4,961,508.00
Proposed Amendment No. 2 Amount: $5,961,508.00
Original Term: 7/1/22-6/30/25 (3 year)
Proposed Amendment No. 2 Term: 7/1/25 - 8/12/26 (13 months & 12 days)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed Amendment No. 2 to DWSD Contract 6004388
HVAC systems and related services
Johnson Controls, Inc
MOTION
Upon recommendation of Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Amendment No. 2 to DWSD Contract 6004388 with Johnson Controls, Inc., to continue providing HVAC Equipment, Parts, Repairs and Preventative Maintenance Services, utilizing a Sourcewell-NJPA Cooperative Agreement #070121-JHN; by adding $1,000,000.00, for an amended total contract amount not-to-exceed $5,961,508.00 and extending the term for an additional 13 months and 12 days for a new term ending 8/12/26. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
The Facilities Division is responsible for maintaining the heating, ventilation, and air conditioning (HVAC) systems for the following locations:
1. Water Board Building: 735 Randolph Street
2. Central Services Facility: 6425 Huber Street
3. East Payment: 13303 East McNichols Road
4. West Payment: 15600 Grand River Avenue
5. West Yard: 13401 West Outer Drive
The Facilities Division ensures the proposed contract will provide for all parts and labor necessary to inspect, repair, perform routine preventative maintenance, purchase and install replacement equipment, as well as any emergency service calls for the DWSD’s HVAC systems. This ensures they are properly maintained and serviced to prolong the life and longevity of the units.
The life expectancy of a commercial HVAC unit is 25 years. There are several units that are over 35 years old and are either completely down or not operating at a capacity to provide occupants a safe and comfortable work environment. The units for this project will need to be prioritized over the next few years as CSF/Huber has over 160 HVAC units, and many are over their life expectancy.
PROCUREMENT METHOD
DWSD Procurement Policy approves participation in a cooperative purchasing agreement from another public purchasing consortium. Sourcewell, previously known as the National Joint Powers Alliance (NJPA) is a Minnesota service cooperative agency. This agency issued a competitive solicitation Request for Proposal #070121which included HVAC Systems Planned Services.
The DWSD Procurement Policy requires that Detroit Based Businesses (DBB) or Detroit Resident Businesses (DRB) must be provided an exclusive opportunity to submit a bid that is equal to or less than the cost of the cooperative purchase price, provided the DBB or DRB will meet or exceed all the terms and conditions of the original Sourcewell contract. An Intent to Respond (ITR) was advertised on the Michigan Inter-Governmental Trade Network (MITN) for 14 calendar days. MITN published this opportunity to 308 companies subscribing to the relevant NIGP code(s) and 23 vendors downloaded the bid package. Two vendors responded. Conferring with CRIO neither vendor qualifies as a DBB or DRB.
Amendment No. 1 was initiated through requisition 509112 and approved by Budget 8/16/23. The amendment added $500,000.00. The amendment was approved by the BOWC on 9/20/23.
Proposed Amendment No. 2 was initiated through requisition 532624 and approved by budget on 3/19/25. The division is requesting to add $1,00,000.00 in contract funding and extend the contract term by 13 months and 12 days, for a new term ending 8/12/26. The DWSD amended term will align with the term extension of Sourcewell Contract #070121-JHN.
Johnson Control had current insurance, and their clearances expire 5/14/26. Per DWSD procurement protocol, Mayoral Review will also be obtained.
SUMMARY
A. Contract No: 6004388
B. Contractor: Johnson Controls, Inc.
C. Original Contract Term: 7/1/22 - 6/30/25
D. Proposed Amendment 2 Term: 7/1/25 - 8/12/26 (13 months & 12 days)
E. Original Contract Amount: $4,461,508.00
F. Amendment 1 Amount: $500,000.00
G. Proposed Amendment 2 Amount: $1,000,000.00
H. Proposed New Contract Amount: $5,961,508.00
I. Projected FY Expenditure: FY 25-26: $1,000,000.00
J. Funding Source: O&M Funds
K. GL String:
5820-20178-492421-617900-000230-15956-0000-000000 - 52.9% Sewer
5720-20167-482421-617900-000209-10731-0000-000000 - 47.1% Water
This contract was presented to the BOWC Finance Committee on June 4, 2025. Per the DWSD Procurement Policy, Mayoral Review will also be obtained.