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The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Change Order 3 to DWSD Contract No. 6001600 (WS-708) with Major Cement Co. for “Repair and Replacement of Water Main Systems: Various Pipe Sizes at Various Locations Throughout the City of Detroit” to add $600,000 in funding, for a new total amended amount not-to-exceed 8,602,800 and to extend the contract term by six months. 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 21, 2021
Item No. 21-0532
Contract No.: 6001600 (WS-708)
Proposed Change Order No. 3
Contractor: Major Cement Co. (DBB)
Address: 15347 Dale Street, Detroit, MI 48219
Current Contract Amount: $8,002,800
Proposed Change Order 3 Amount: $600,000
Proposed Total Amended Contract Amount: $8,602,800
Current Contract Term: 10/18/18 - 6/30/21
Proposed Extension: 7/1/21 - 12/31/21 (6 months)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Proposed Change Order 3 to DWSD Contract No. 6001600 (WS-708) to add time and money for Repair and Replacement of Water Main Systems: Various Pipe Sizes at Various Locations Throughout the City of Detroit
Major Cement Co.
MOTION
Upon recommendation of Mamata Burgi, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department, authorizes the Director to approve Change Order 3 to DWSD Contract No. 6001600 (WS-708) with Major Cement Co. for “Repair and Replacement of Water Main Systems: Various Pipe Sizes at Various Locations Throughout the City of Detroit” to add $600,000 in funding, for a new total amended amount not-to-exceed 8,602,800 and to extend the contract term by six months. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
DWSD Contract No. 6001600 (WS-708) is part of an ongoing distribution piping system water main repair and replacement programs within the City of Detroit. This first-of-its-kind hybrid contract provides not only for the emergency repair of water mains, but also for the emergency replacement of limited lengths of water main that have failed multiple times in a short time period and for which a traditional design-bid-build project would take too long to establish reliable water service to DWSD retail customers.
The Detroit Water and Sewerage Department (DWSD) prepared this hybrid contract for the purpose of readily implementing urgent water main repair and replacement work to the Detroit water system. The normal DWSD water contracts are either solely for water main repair or water main replacement. This contract, the first of its type, is distinct in that the scope of work covers both water main repair and water main replacement. Part A of the contract is reserved for individual water main repairs and Part B is intended for emergency water main replacements. During the term of this contract, DWSD Engineering, based on historical information can reliably anticipate short segments of water mains may experience multiple breaks, but may not be appropriate and/or cannot wait to be packaged in a traditional water main replacement contract. However, to maintain water service to DWSD’s customers and eliminate non-revenue water loss, replacement of such water mains should not be delayed. This contract will also reduce the inconvenience to DWSD’s customers and the general public of repeated road closures and excavations to repair various water mains across the City. DWSD Engineering evaluates pipe conditions and break histories to determine the areas of the water system best suited for replacement work.
During extreme weather conditions, the DWSD experiences a significant increase in the number of water main breaks and leaks in its distribution system. At this time, in-house maintenance and repair operations teams have labor and resource shortages therefore find difficult to repair on a timely basis. This contract’s original & primary purpose was to provide for the repair of various sized water mains during times of critical need to supplement DWSD’s own efforts to repair water mains.
The work primarily consists of either repairing breaks and leaks in the existing water mains or replacing the water mains. It also includes the repair and replacement of hydrants, valves, stop boxes, road gate boxes, and other appurtenances, including excavation and backfilling, snow and ice removal, salting down areas and temporary restoration of the site.
Distributed Work: Estimated Work:
78% Water Main Breaks $468,000
5% Service Leaks $30,000
5% Hydrants $30,000
3% Demolitions $18,000
5% Service Kills $30,000
4% Gate Valves $24,000
Total = $600,000
Change Order 1 extended the term from 4/15/20 to 6/30/21 to allow for continued services under this contract.
Change Order 2 was needed due to the Covid-19 pandemic, DWSD furloughed a significant number of employees, including operations staff that repairs water main breaks. As a result of furloughing employees, DWSD was required to utilize contractors to perform the work, resulting in more work being performed under this contract than originally anticipated and requiring additional funds under Change Order 2.
Proposed Change Order 3 is being requested to add funding for the extended term in order to bid out the replacement contract for these services for DWSD.
PROCUREMENT METHOD
This contract was competitively solicited through a Request For Bids and was awarded to the lowest responsive and responsible bidder, which was Major Cement Co. The initial contract was approved by the BOWC on 9/19/18 for a term of 1.5 years and $5,472,800.
Change Order 1 added 442 days to the contract term; extending it from 4/14/20 to 6/30/21 and was approved by the DWSD Director on 12/23/19.
Change Order 2 was approved by the BOWC on 8/12/20 and added $2,530,000, for a new amended total not-to-exceed amount of $8,002,800.
SUMMARY
A. Contract No.: 6001600 (WS-708)
B. Initial Contract Term: 10/17/18 - 4/14/20 (approx. 1.5 years)
C. CO 1 Extension: 4/15/20 - 6/30/21 (1 year and 2 months)
D. CO 2 Extension: N/A
E. Proposed CO 3 Extension: 7/1/21 - 12/31/21 (6 months)
F. Initial Contract Amount: $5,472,800
G. CO 1 Amount: N/A
H. CO 2 Amount: $2,530,000
I. Proposed CO 3 Amount: $ 600,000
J. Proposed New Total Contract Amount: $8,602,800
K. Funding Source: O&M Funds
L. Anticipated Fiscal Year Spend:
FY 21-22: $ 600,000
M. GL String(s): 5720-20167-482431-622300-000209-10680-0000-000000 - 40% Water
5820-20178-492431-622300-000230-15826-0000-000000 - 60% Sewer
This proposed change order was presented to the DWSD Finance Subcommittee on July 7, 2021. Per DWSD procurement protocol, Mayoral review will also be obtained.