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The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract No. 6003486 with Innovyze Inc., for Hydraulic Modeling System Software to DWSD for a total contract not-to-exceed amount of $180,000 and a term of three (3) years. 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 June 16, 2021
Item No. 21-0503
Contract No.: 6003486
Contractor: Innovyze Inc.,
Address: 6720 SW Macadam Ave., Suite 200, Portland, OR 97219
Contract Amount: $180,000
Current Contract Term: 7/01/21 - 6/30/24 (3 years)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Proposed Contract 6003486 for Hydraulic Modeling System Software
New contract with Innovyze Inc., resulting from AECOM’s transfer of direct ownership of the license agreement
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 No. 6003486 with Innovyze Inc., for Hydraulic Modeling System Software to DWSD for a total contract not-to-exceed amount of $180,000 and a term of three (3) years. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
In July 2017, DWSD awarded the CIPMO contract # 6000777 (Project# CS-1812) to AECOM after completing the competitive qualification based RFP process for a five-year period. All the programmatic components that comprise a capital delivery Program Management Office (PMO) were specified within the scope of work.
As of July 2020, all the software components that were initially set up under the CIPMO (CS-1812) project are operational, functioning to plan; and DWSD is executing contracts to rehabilitate infrastructure and effectively improve service levels to Detroit residents. Effective July 2021, which is year 4 of the CIPMO contract, DWSD needs to transition to take direct ownership of the license agreements for Innovyze, E-Builder, CityWorks and Primavera as specified in the contract. These software license costs would be removed from the CS-1812 contract.
AECOM and DWSD have negotiated price points for these four software vendors that is beneficial to DWSD to retain and all parties are in agreement to transfer the active software agreement to DWSD with no additional fees. When the balance of the 5-year term expires for CS-1812, DWSD will either seek BOWC approvals for amendments or replacement contracts.
Innovyze Hydraulic Modeling System is a proprietary software package designed and sold exclusively by Innovyze. Innovyze Hydraulic Modeling System is an essential tool used in CIP development. Hydraulic models are computer representations of a distribution or collection system. Information gathered from record drawings and field observations is entered into computer programs that solve complex flow equations. DWSD is using these computer models to assess where hydraulic deficiencies may exist and what can be done to fix them. Hydraulic models have been developed and maintained for both the DWSD water distribution and sewage collection systems. Innovyze advanced hydraulic modeling software improves the performance and cost-effectiveness of DWSD’s water distribution networks, so we can continue to improve upon the level of service provided
The Innovyze software package was acquired as a single source contract under the CIPMO contract with Innovyze, including all Suite versions, Viewers, updates, upgrades and Annual Maintenance.
DWSD is taking over the current contract that AECOM has, which secured the software licenses directly from the Original Software Manufacturer. The software license agreement gives DWSD, the licensee a non-exclusive, non-transferable right to use software. The Hydraulic Modeling software package was acquired as a single source contract under CS-1812 with Innovyze. Innovyze is the sole and exclusive developer, owner and distributor of InfoWater Pro InfoWorks ICM, InfoAsset Manager and InfoAsset Planner Software packages,
Then annual license charge is $60,000 for the number of users identified for the modules used. Upon renewal, Innovyze has a right to increase license fees up to the greater of CPI plus 2%. The annual subscription includes Maintenance Releases, Technical Support and Software Updates.
PROCUREMENT METHOD
The DWSD IT Department submitted requisition #486980, that was approved on 4/16/21, requesting a novation to commit to taking over the CIPMO contract with Innovyze Inc., for three (3) years for a not-to-exceed amount of $180,000. This contract is being requested as a single source, with an approved Exception to Competitive Solicitation, due to Innovyze Inc. being the proprietary software package designed and sold exclusively by Innovyze vendor. The Exception to Competitive Solicitation Form was approved on April 16, 2021 by Director Gary Brown.
Innovyze’s clearance application was denied on 5/6/21 and are working on resolving it, and the contract will not be fully executed until clearances are approved. A master agreement for technology services contract will be signed. Per DWSD procurement protocol, Mayoral review will also be obtained.
SUMMARY
A. Contract No.: 6003486
B. Contractor: Innovyze Inc.
C. Contract Amount: $180,000
D. Contract Term: 7/01/21 - 6/30/24
E. Funding Source: O&M Funds
F. GL String(s):
5720-20166-481601-617900-000204-10790-0000-000000 - 30% Water
5820-20177-491601-617900-000225-15805-0000-000000 - 70 % Sewer
G. Fiscal Year Breakdown: FY 21-22: $60,000
FY 22-23: $60,000
FY 23-24: $60,000
This proposed contract was presented to the DWSD Finance Sub Committee on June 2, 2021. Per DWSD procurement protocol, this will also be sent for Mayoral review.