Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6007212 for Project WS-740 with Major Contracting Group and Gayanga Company (Joint Venture), for Water System Improvements, for a total contract amount not-to-exceed $26,974,000.00 and a term of two (2) 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 June 18, 2025
Item No. 2025-124
Contract No. 533056 / WS-740
Contractor: Major Contracting Group, 12222 Greenfield Road, Detroit, MI 48227
Gayanga Company, 7700 Second Ave, Ste 419, Detroit, MI 48202
Contract Amount: $26,974,000.00
Contract Term: Two (2) years
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract 6007212 / WS-740
Water System Improvements
Major Contracting Group
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 DWSD Contract 6007212 for Project WS-740 with Major Contracting Group and Gayanga Company (Joint Venture), for Water System Improvements, for a total contract amount not-to-exceed $26,974,000.00 and a term of two (2) years. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
DWSD Project No. WS-740 is part of an ongoing distribution piping system water main replacement program. The work consists of replacing and rehabilitating existing water mains along East Jefferson Avenue from the Water Works Park WTP to Alter Road and at select locations across Detroit. The water mains have a history of frequent breaks and high maintenance cost. WS-740 project will replace or rehab 29,900 LFT of water main. Lead services forecasted for replacement are 328. Lead services of one inch and less in diameter are replaced with one-inch copper tube; existing Lead services of 1.5-inches and 2-inches diameter are replaced with copper tube of the same diameter.
This water main replacement contract is one of a continuing series of contracts that replace the old water mains in the City of Detroit having an extensive history of leaks and breaks. The new water mains and associated infrastructure will enhance the integrity of the DWSD Water System and ensure quality service to its customers. To protect the health and safety of our customers, existing Lead (Pb) water services are being replaced from the new water main all the way to the customer meter.
Proposed Contract 6007212, for Project WS-740, will continue the rehabilitation of the water main to provide better services to the citizens of Detroit and meet the needs of future City Development.
PROCUREMENT METHOD
This procurement was competitively solicited through a Request for Bids (RFB) per Requisition 533056, which was fully approved on 4/1/25. The RFB was advertised on the Michigan Inter-Governmental Trade Network (MITN) BidNet website for 35 calendar days (4/14/25 - 5/19/25). MITN published this opportunity to 1305 companies and 93 firms downloaded the bid package. Two bids (2) were received:
|
Bidder |
Bid Total |
Equalization |
Equalizations Credits |
Total |
|
Major Contracting Group |
$26,974,000.00 |
JV - 6% |
($1,618,440.00) |
$25,355,560.00 |
|
LGC Global |
$30,777,673.00 |
JV - 6% |
($1,846,660.37) |
$28,931,012.53 |
Engineer’s Estimate: $25,000.000.00. Bid amount and propose contract award exceeds Engineer’s Estimate by $1,974,000.00. CIP Budget amendment will be presented at later date by the Finance Team.
Bids were evaluated based on the lowest bid pricing. As the apparent equalized low bidders, Major Contracting Group and Gayanga Company (JV) was evaluated and determined to be responsive. The bid tab and responsiveness evaluation, for Major Contracting Group and Gayanga Company’s bid was forwarded to the Engineering Division. Therefore, it is recommended that Major Contracting Group and Gayanga Company be awarded the contract resulting from RFB WS-740 in the amount of $26,974,000.00.
Major Contracting Group is a Certified Detroit Headquartered and Detroit Based Business. Their clearances expire on 2/13/26
Gayanga Company is a Certified Detroit Headquartered, Detroit Based, Detroit Small Business, and Detroit Resident Business. Their clearances expire on 2/12/26
SUMMARY
A. Contract No.: 6007212/ WS-740
B. Contractor: Major Contracting Group/ Gayanga Company
C. Anticipated Contract Term: 2 years
D. Contract Amount: $26,974,000.00
E. Anticipated FY Breakdown:
FY 25-26: $10,000,000.00
FY 26-27: $10,000,000.00
FY 27-28: $6,974,000.00
F. Funding Source: I &E Bond Funded
G. GL String: 5740-20334-487801-617900-900384-30129-0000-000000
- 100% Water
This proposed contract was presented to the BOWC Finance Committee on June 4, 2025. Per DWSD procurement protocol, Mayoral Review and City Council approvals will also be obtained.