Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to enter into Contract # 6001661 with Santoro Inc., to furnish parts, repairs, and refurbishment services for DWSD owned dump trucks, vans, utility bodies, construction equipment and machines for a period of one-year, with one, one-year renewal option at a total cost not to exceed $600,000.00 ($300,000.00 per year) and authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of October 17, 2018
Item No. 18-0227
Contract No. 6001661
Vendor: Santoro Inc.
Duration: 10/24/2018 - 10/23/2020 (one-year, with one, one-year renewal option)
Original Amount: not-to-exceed $600,000.00 ($300,000.00 annually)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director of Detroit Water and Sewerage Department
RE: Parts, repairs, and refurbishment services for DWSD owned dump trucks
vans, utility bodies, construction equipment and machines
MOTION
Upon recommendation of Thomas Naughton, Chief Financial Officer, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to enter into Contract # 6001661 with Santoro Inc., to furnish parts, repairs, and refurbishment services for DWSD owned dump trucks, vans, utility bodies, construction equipment and machines for a period of one-year, with one, one-year renewal option at a total cost not to exceed $600,000.00 ($300,000.00 per year) and authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
DWSD Fleet Department is responsible for the maintenance and repair services for all heavy duty equipment. The 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 are used to support DWSD consumer services regularly.
JUSTIFICATION
DWSD Fleet Operations are responsible for keeping all department vehicles in reliable, working order. In order to maintain the vehicles, services and parts are required. Much of the maintenance of vehicles is performed in-house which, requires manufacturer-specific parts. In addition to these parts, there are times when vehicles will need to be sent to the vendor for repair and maintenance. This one-year contract with one, one-year renewal will provide parts, maintenance and repair services for all of DWSD’s heavy duty vehicles. This amount has been projected based on Facilities’ historical usage.
PROCUREMENT METHOD
Purchasing, published a Request for Bid (RFB) on August 28, 2018 with an anticipated closing date of September 14, 2018. Thirty-nine vendors were solicited through the Michigan Intergovernmental Trade Network (MITN), however only one bid response had been received prior to the 3:00 p.m. closing time. The RFB deadline was extended until September 18, 2018, to allow for additional vendor responses. All thirty-nine vendors were notified of the closing extension via MITN communications. Procurement reached out to a few locally stationed vendors via phone and email to inquire on their interest to respond, however no responses were received. At final closing, the same one bid remained. Purchasing recommends the contract be awarded to Santoro Inc. as the single responsive, responsible bidder.
FUNDING SOURCE: Operations & Maintenance funded for CPA # 6001661
GL string: 5720-20167-482422-622100-000209-10731-0000-000000 $240,000.00
GL string: 5820-20178-492422-622100-000230-15956-0000-000000 $360,000.00
Original Duration: one-year with one, one-year renewal
DWSD Department: Fleet Operations
Total: $600,000.00