Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department conditionally authorizes the Director to approve DWSD Contract 6003690 with Santoro, Inc. to furnish parts, repair and refurbishment services for DWSD-owned Heavy-Duty Trucks, Vans, Construction Equipment and Machines for a total amount not-to-exceed $2,250,000 and a term of 5 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 July 21, 2021
Item No. 21-0541
Contract No. 6003690
Contractor: Santoro, Inc.
Contractor Address: 15232 Harper, Detroit, MI 48224
Total Contract Amount: $2,250,000
Term: 7/1/2021 - 6/30/2026 (5 years)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Proposed DWSD Contract 6003690
Parts, Repairs and Refurbishment of Heavy-Duty Trucks, Vans, Construction Equipment and Machines
Santoro, Inc.
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 DWSD Contract 6003690 with Santoro, Inc. to furnish parts, repair and refurbishment services for DWSD-owned Heavy-Duty Trucks, Vans, Construction Equipment and Machines for a total amount not-to-exceed $2,250,000 and a term of 5 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 Water and Sewerage Department’s Fleet Department is responsible for keeping the department vehicles in reliable, working condition. All dump trucks, vans, and truck utility bodies, construction equipment and machines, hydraulic and electric cranes, vehicle recovery equipment, cargo control equipment, vehicle mounted traffic control arrow boards and snow removal equipment owned by DWSD are used to support DWSD consumer and require regular maintenance with related parts, repair and or refurbishments services. DWSD’s fleet of heavy-duty trucks, vans, construction equipment and machines are used for operational efficiency year-round by the DWSD maintenance and repair teams.
PROCUREMENT METHOD
The Fleet Operations Department submitted requisition #484303 to solicit for a new contract for parts, repairs, and refurbishment services for DWSD owned heavy-duty trucks, vans, construction equipment and machines that was approved on 6/3/21. This contract was advertised on the Michigan Inter-Governmental Trade Network (MITN) for 26 calendar days (5/3/21 - 5/28/21). MITN published the opportunity to 211 companies subscribing to the relevant NIGP codes and 19 firms downloaded the bid package. One bid was received from Santoro, Inc.
Due to procurement receiving only one bid, an email was sent to 10 of the 19 vendors that downloaded the bid package asking the vendors to share with DWSD the reasons why they decided not to place a bid to compete for the heavy-duty trucks, vans, construction equipment and machine parts, repair and refurbishment services business with DWSD. Two vendors replied stating the following reasons:
• Kirk’s Auto - Since the bid called for genuine parts and not new or remanufactured parts, they were unable to bid, and they are not set-up for drive in service repair.
• Michigan Filter & Fleet Supply, Inc - Unable to meet the request, they do not offer requested services.
The evaluation and award was based on a combination of the highest overall quoted percent discount, the lowest list price for the parts quoted, the lowest labor rates quoted for labor during normal working business hours and the lowest round trip transportation costs to and from supplier’s repair facility. See attached document for a breakdown of the pricing.
DWSD Fleet Operations Department has estimated total costs for parts, maintenance, and repair services for the five-year term of this contract to be $2,250,000.
Santoro, Inc. provides parts, repairs and refurbishment services for heavy-duty trucks, vans, construction equipment and machines and is certified through the National Institute of Automotive Service Excellence.
Santoro, Inc. is based in Detroit. However, equalization credits were not applied at 2% due to the expiration of their DBB certification on 3/27/20. Santoro, Inc. has applied for re-certification on 6/18/21.
Based on the information above, it is recommended that the contract be awarded to the sole responsive and responsible bidder, Santoro, Inc. for $2,250,000 for a term of five years.
Santoro, Inc. clearances expire 6/21/21 and a formal contract document is not required.
SUMMARY
A. Contract Number: 6003690
B. Contract Term: 7/1/21 - 6/30/26 (5years)
C. Contract Amount: $2,250,000
D. Projected Fiscal Year (FY) Contract Expenditures:
FY 22: $450,000
FY 23: $450,000
FY 24: $450,000
FY 25: $450,000
FY 26: $450,000
E. Funding Source: O&M Funds
F. GL Strings:
5720-20167-482422-617900-000209-10731-0000-000000 - 30% (Water)
5820-20178-492422-617900-000230-15956-0000-000000 - 70% (Sewer)
This proposed contract was presented to the BWOC Finance Committee on July 7, 2021. Per DWSD procurement protocol, Mayoral review will also be obtained.