Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Amendment No. 1 for DWSD Contract 6003895 for Patch Material, Bituminous: CP-5, delivered in minimum of 40 Ton Truckloads with Ajax Paving Industries Inc. requesting to add $48,000, for a new total amended contract amount not-to-exceed $194,900, expiration date remains 10/31/22. The BOWC also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of September 21, 2022
Item No.: 22-0914
Proposed Amendment No. 1
Contract No.: 6003895
Contractor: Ajax Paving Industries Inc., 1957 Crooks Rd Ste A, Troy, MI 48084
Initial Contract Amount: $146,900
Proposed Amendment No. 1 Amount: $48,000
Proposed New Total Contract Amount: $194,900
Contact Term: 11/1/21 - 10/31/22 (1 year)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract 6003895
Cold Patch (CP5) Material
Ajax Paving Industries 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. 1 for DWSD Contract 6003895 for Patch Material, Bituminous: CP-5, delivered in minimum of 40 Ton Truckloads with Ajax Paving Industries Inc. adding $48,000, for a new total amended contract amount not-to-exceed $194,900, expiration date remains 10/31/22. The BOWC also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
Cold patch (specification #CP-5) is used year around by DWSD maintenance and repair teams to patch excavation holes on street and sidewalks made by DWSD during repairs of water and sewer assets and similar service work orders. To support this work, DWSD’s Materials Management team maintains a readily available supply at both CSF and West Yard warehouses. Cold patch is bid out annually due to the volatile pricing of the product. This amendment will assure that operations will run smoothly until 11/1/22 when a new contract will be executed.
PROCUREMENT METHOD
On 10/22/21, the BOWC approved Contract 6003895 for Patch Material with Ajax Industries Inc. for a duration of one (1) year and a not-to-exceed amount of $146,900. This contract was competitively solicited on MITN. Ajax Paving Industries Inc was the lowest bidder.
The DWSD Warehouse Department submitted requisition #499343 for an amendment to add funding in the amount of $48,000 for the continued purchase and delivery of Patch Material. This amended contract will continue to have the same pricing, terms & conditions and expiration date.
Ajax Paving Industries Inc clearances expire 3/18/23, and a formal amended contract document is not required. Per DWSD procurement protocol, no further approvals are required.
SUMMARY
A. Contract No: 6003895
B. Contract Term: 11/1/21-10/31/22
C. Initial Contract Amount: $146,900
D. Proposed Amendment No. 1 Amount: $48,000
E. Proposed New Total Contract Amount: $194,900
F. Anticipated FY Spend: $48,000 for remainder of contract
G. Funding Source: O&M Funds
H. GL String: 5720-00000-000000-150100-000000-00000-0000-000000 - 100% Water
This proposed contract was presented to the BOWC Finance Subcommittee on September 7, 2022. Per DWSD procurement protocol, no additional approvals are required.