Detroit Water and Sewerage Department
File #: 18-0173    Version: 1 Name:
Type: Contract Status: Passed
In control: Board of Water Commissioners
On agenda: 8/15/2018 Final action: 8/15/2018
Title: The Board of Water Commissioners for the City of Detroit's Water and Sewerage Department authorizes the Director to secure Change Order No. 2 to exercise the second and final, one year renewal for Contract No. 2911300 with EJ USA Inc., for various hydrant parts at a cost of $818,463.63 for the total contract amount not to exceed $2,455,390.89 and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Indexes: Board of Water Commissioners, Finance Committee

Title

The Board of Water Commissioners for the City of Detroit’s Water and Sewerage Department authorizes the Director to secure Change Order No. 2 to exercise the second and final, one year renewal for Contract No. 2911300 with EJ USA Inc., for various hydrant parts at a cost of $818,463.63 for the total contract amount not to exceed $2,455,390.89 and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.

 

Body

Agenda:                                                                                     August 1, 2018

Item No.                                                                                    18-0173

Contract No. :                                                                2911300

Original Contract Length                                          2 years with 2 one year renewals

The Original Contract Amount:                     $1,636,927.26                     

Change Order No. 1 Amount:                     $818,463.63

Total Contract Amount:                                          $2,455,390.89

Contract start date:                                                                7/31/18

Change order No. 2 end date:                       7/31/19

 

 

TO:                                          The Honorable

                                          Board of Water Commissioners

                                          City of Detroit, Michigan

 

FROM:                           Gary Brown, Director

                                          Water and Sewerage Department

 

RE:                     Change Order No. 2 to exercise the 2nd and final one year renewal of DWSD Contract No. 2911300 for stock replenishment of “Various Hydrant Parts”

 

 

MOTION

 

Upon recommendation of Thomas Naughton, Chief Finance Officer, the Board of Water Commissioners for the City of Detroit’s Water and Sewerage Department authorizes the Director to secure Change Order No. 2 to exercise the second and final, one year renewal for Contract no. 2911300 with EJ USA Inc., for various hydrant parts at a cost of $818,463.63 for the total contract amount not to exceed $2,455,390.89 and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.

 

 

BACKGROUND

 

The stores / warehouse function is to receive, stock, store, and issue materials to various DWSD teams to support our Field services, Maintenance, Repair, and Operations work.  This proposed two year contract will allow timely replenishment of fire hydrant parts to ensure DWSD stock levels meet operational needs. 

 

 

JUSTIFICATION

 

This contract will serve to ensure that hydrants parts are available for installation when needed. The various items include, but are not limited to, assembly bonnets, hydrant caps, hydrant extensions, gaskets, repair kits, nozzles, nipples, nuts, standpipe, stems, valves and pins will be used to repair standard and breakaway fire hydrants.  These parts will be maintained as inventory and then issued as replacement parts, upon request.

 

PROCUREMENT METHOD

 

After the evaluation of the bids on a prior competitive solicitation (pre-bifurcation) and review of the specifications, it was determined that EJ USA Inc., had proprietary rights of the hydrant drawings. EJ USA Inc. is the manufacturer of the particular “Carrol-drain” hydrants used by DWSD. Therefore, Procurement has considered the vendor a sole source and has entered into an agreement with the manufacturer directly to avoid additional mark up costs from distributors.

 

DETAILS

 

Funding Source                                                               Operation & Maintenance                                           

GL String                                                                                            5720-20276-487611-624115-001688-10732-0000-000000

Contract Start Date                                                               8/1/2015

Contract End Date                                                               7/31/2019

Original Contract Amount                                          $1,636,927.26                     

Change Order No. 1 Amount                     $818,463.63

Total Contract Amount                                          $2,455,390.89