Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Change Order No. 2 for Contract No. 2904951 with GDI Services Inc. for Janitorial Services to add $900,000.00 for a total contract amount not to exceed $3,417,884.00 and to exercise the second and final renewal option through 4/5/2020; and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of July 12, 2019
Item No.: 19-00193
Proposed Change Order No. 2
Contractor: GDI Services Inc.
Contractors Address: 15245 West 8 Mile Rd., Detroit, MI 48235
Proposed Change Order No. 2 Amount: $900,000.00
Proposed Total Contract Amount: $3,417,884.00
Current Contract Term: 4/06/15 - 4/05/19
Change Order No. 1 Extended Term: 4/06/18 - 4/05/19
Proposed Change Order No. 2 Extended Term: 4/06/19 - 4/05/20
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: DWSD Contract No. 2904951
Janitorial Services
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 Change Order No. 2 for Contract No. 2904951 with GDI Services Inc. for Janitorial Services to add $900,000.00 for a total contract amount not to exceed $3,417,884.00 and to exercise the second and final renewal option, through 4/5/2020; and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The DWSD Facilities Department entered into a contract with GDI Services Inc. to provide janitorial services to all five (5) DWSD locations beginning April 6, 2015. The services include office cleaning, industrial cleaning, limited grounds maintenance, window cleaning and other special projects as needed.
The five (5) facilities that will be covered under this agreement are:
1. Water Board Building (735 Randolph Street)
2. CSF (6425 Huber Street)
3. East Payment (13303 East McNichols Road)
4. West Payment (15600 Grand River Avenue)
5. West Yard (13401 West Outer Drive)
JUSTIFICATION
The DWSD Facilities Division additional funds and to exercise the second and final renewal option (through 4/5/2020) to the contract to allow for continued janitorial services for all DWSD locations. Over the next year, DWSD Procurement Department will work on procuring a new janitorial services contract.
PROCUREMENT METHOD
This contract was competitively solicited as an RFP in September 2014. The contract with GDI Services Inc. was approved by the BOWC on February 25, 2015.
DETAILS
A. Contract No.: 2904951
B. Contract Term: 4/06/15 - 4/05/18
C. Change Order No. 1 Extension: 4/06/18 - 4/05/19
D. Change Order No. 2 Extension: 4/06/19 - 4/05/20
E. Original Contract Amount: $2,517,884
F. Change Order No. 2 Amount: $900,000
G. Proposed Total Contract Amount: $3,417,884
H. Funding Source: O&M Funds
I. GL Strings:
5720-20167-482421-617900-000209-10731-0000-000000 - 30% Water
5820-20178-492421-617900-000230-15956-0000-000000 - 70% Sewer
Proposed Change Order No. 2 to Contract No. 2904951 was presented to the BOWC Finance Committee on July 9, 2019. Originally the change order was for six (6) months for an amount of $540,000.00; then a decision was made to exercise the renewal for 12 months for an amount of $900,000.00 but was inadvertently presented incorrectly to the BOWC Finance Committee. The amount of $900,000.00 for the 12 month renewal for a new total contract amount of $3,417,884.00 is being presented to the BOWC on July 12, 2019.