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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 for DWSD Contract No. 6003270 with Kone Inc., for preventative maintenance, service and repairs for all DWSD elevators, utilizing OMNIA cooperative contract #EV2516; by adding $500,000.00, for an amended total contract amount not-to-exceed $1,011,950.00 and extending the term 5 years for a new term ending 11/30/29. 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 December 18, 2024
Item No. 2024-250
Proposed Amendment No. 2
Contract No.: 6003270
Contractor: Kone, Inc.
Address: 11864 Belden Court, Livonia, MI 48150
Current Contract Amount: $511,950.00
Proposed Amendment No. 2 Amount: $500,000.00
Proposed New Total Contract Amount: $1,011,950.00
Initial Contract Term: 3/1/21 - 11/30/24
Proposed Amendment No. 2 Extension: 12/1/24 - 11/30/29
Proposed New Contract Term: 3/1/21 - 11/30/29
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Proposed Amendment No. 2 to Contract 6003270
To add funds and time to the contract to continue preventative maintenance, service and repairs for all DWSD elevators
Kone, 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. 2 for DWSD Contract No. 6003270 with Kone Inc., for preventative maintenance, service and repairs for all DWSD elevators, utilizing OMNIA cooperative contract #EV2516; by adding $500,000.00, for an amended total contract amount not-to-exceed $1,011,950.00 and extending the term 5 years for a new term ending 11/30/29. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
The DWSD Facility Operations Department is responsible for the repair and maintenance of all DWSD facilities. DWSD’s facilities have a total of twelve (12) elevators for daily operations:
• 6 Passenger and 1 Auto Freight Elevator at MOB
• 5 Hydraulic Elevators at CSF
Elevators bear the responsibility of transporting employees, visitors, vehicles, and material throughout the building. This maintenance contract assists the Facilities Department in getting preventative maintenance and repairs done in a timely manner when units fail or are damaged by accidents.
Proposed Amendment No. 2 is being requested by Facility Operations. The cooperative Omina Contract No. EV2516 has exercised the optional renewal terms and has extended the contract for an additional five (5) years. The proposed amendment will allow for the continuation of services to provide preventative maintenance, along with as-needed parts, service, and repairs with Kone Inc.
PROCUREMENT METHOD
The DWSD Procurement Policy allows for participation in Cooperative Purchasing Agreements from other public purchasing consortiums or competitively solicited contracts. OMNIA through the City of Kansas City, MO issued a Request for Proposal for elevator preventative maintenance, service and repairs and awarded based on the highest ranked proposal. The cooperative OMNIA Contract No. EV2516 was originally set to expire on 11/30/24. OMNIA has exercised their optional renewal terms for five (5) additional years, with a new expiration date of 11/30/29.
The DWSD Procurement Policy requires that Detroit Based Business (DBB) and Detroit Resident Business (DRB) be provided with 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 terms and conditions of the original cooperative contract.
To ensure compliance, DWSD Procurement issued an Invitation to Respond (ITR) 483935 on MITN, on 11/30/20, which required an intent to respond due on 12/7/20, and closed 12/16/20. The ITR opportunity was submitted to 107 companies subscribing to the relevant NIGP codes(s). The ITR as viewed by 10 companies yielded two intents to bid and only one bid was submitted by ThyssenKrupp who is not a DBB or DRB and did not qualify per the policy. The BOWC approved the Contract 2/17/21 and FRC approved the Contract 1/27/21.
Amendment No. 1 was initiated through requisition #500366 and approved by DWSD Budget on 9/1/22. The additional funding was used to make repairs for the administrative elevator at CSF. The amended funds and work repairs were approved by the BOWC on 10/19/22.
This proposed Amendment No. 2 was initiated through requisition #525418 and approved by DWSD Budget on 9/13/24. The additional funding will be used for the continuation of contract services: preventative maintenance, as-needed parts, service, and repairs.
KONE Inc. clearances expire 11/13/25. Per DWSD procurement protocol, no additional approvals are required.
SUMMARY
A. Contract No.: 6003270
B. Initial Contract Amount: $400,000.00
C. Amendment No. 1 Amount: $111,950.00
D. Proposed Amendment No. 2 Amount: $500,000.00
E. Proposed New Total Contract Amount: $1,011,950.00
F. Contract Term: 03/1/21 - 11/30/24
G. Proposed Amendment No. 2 Term: 12/1/24 - 11/30/29
H. Proposed New Contract Term: 03/1/21 - 11/30/29
I. Funding Source: O&M Funds
J. GL String(s):
5720-20167-482421-617900-000209-10731-0000-000000 - 47.1% Water
5820-20178-492421-617900-000230-15956-0000-000000 - 52.9 % Sewer
I. Projected Fiscal Year (FY) Contract Expenditures:
FY 24-25 $100,000.00
FY 25-26 $100,000.00
FY 26-27 $100,000.00
FY 27-28 $100,000.00
FY 28-29 $100,000.00
This proposed amendment was presented to the DWSD Finance Committee on December 4, 2024. Per DWSD procurement protocol, no additional approvals will be obtained.