Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to secure change order no. 1 for contract no. 6001441 with Jorgensen Ford Sales, Inc. for an increased amount of $250,000.00 period of two-years to furnish vehicle parts, preventative maintenance and repair services for DWSD owned Ford vehicles for a total contract amount not-to-exceed $430,000.00 and authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of December 19, 2018
Item No.: 18-0276
Contract No.: 6001441
Vendor: Jorgensen Ford Sales, Inc.
8333 Michigan Ave.
Detroit, MI 48210
Duration: 05/16/2018 - 05/15/2020 (Two Years)
Original Amount: $180,000.00
Change Order No. 1 Amount: $250,000.00
Total Contract Amount: Not-to-exceed $430,000.00
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director of Detroit Water and Sewerage Department
RE: DWSD Contract No. 6001441; Change Order No. 1 Ford vehicle parts,
preventative maintenance and repair services
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 secure change order no. 1 for contract no. 6001441 with Jorgensen Ford Sales, Inc. for an increased amount of $250,000.00 period of two-years to furnish vehicle parts, preventative maintenance and repair services for DWSD owned Ford vehicles for a total contract amount not-to-exceed $430,000.00 and authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
DWSD Fleet Operations is responsible for keeping all 552 Ford registered department vehicles in reliable and in working order based on the Fleet Final Inventory List dated March 14, 2017. 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.
JUSTIFICATION
The amount was originally projected based on one of the previous contracts and has recently been revised based on historical repair statistics, maintenance records, and current fiscal year consumption along with the remaining lifetime of the equipment. This two year contract will provide parts, maintenance and repair services for all of DWSD and GLWA’s Ford vehicles.
PROCUREMENT METHOD
DWSD Procurement, on behalf of the DWSD Fleet Department, published a Request for Bid (RFB) RJ-441143 on January 8, 2018 with a closing date of January 19, 2018. Seventeen vendors viewed through the Michigan Intergovernmental Trade Network (MITN) and four bid responses were received. DWSD Procurement requests BOWC approval for an increase to the current contract to add the additional funds as Fleet Operations historical usage and forecasted projections. The original RFB responses were:
The winning bid was Jorgensen Ford Sales, Inc.
DETAILS
Funding Source: Operations and Maintenance (O & M) funded
GL string: 30% 5720-20167-482422-622100-000209-10731-0000-000000 $129,000.00
GL string: 70% 5820-20178-492422-622100-000230-15956-0000-000000 $301,000.00
Original Duration: Two Years
DWSD Department: Fleet Operations
Total: $430,000.00
FY 17/18 $90,000.00
FY 18/19 $170,000.00
FY 19/20 $170,000.00