Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Change Order No. 3 for Contract No. 6000875 for HVAC Building Mechanical Systems Program Management for On Demand Repair Services with Johnson Controls, Inc. to increase the contract amount by $225,500.00 for a total contract amount $2,540,960.00, 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. 19-00195
Contract No. 6000875
Proposed Change Order No. 3
Contractor: Johnson Controls, Inc.
Contractors Address: 2875 Highway Meadow Circle, Auburn Hills, MI 48326
Proposed Change Order No. 3 Amount: $225,000.00
Proposed Total Contract Amount: $2,540,960.00
Contract Term: 8/23/2017 - 8/22/2019 (2 years)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Proposed Change Order No. 3 to DWSD Contract No. 6000875
HVAC Building Mechanical Systems Program Management for On Demand Repair Services
MOTION
Upon recommendation of Mamata Burgi, Purchasing Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department, authorizes the Director to approve Change Order No. 3 for Contract No. 6000875 for HVAC Building Mechanical Systems Program Management for On Demand Repair Services with Johnson Controls, Inc. to increase the contract amount by $225,500.00 for a total contract amount $2,540,960.00, and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On Demand Repair Services for HVAC Building & Mechanical Systems Program Management are essential for the maintenance and up keep of DWSD facilities, which includes air handler units, A/C conditioning units as well as rebuilding, rebasing, installation of new seals, bearing, couplings, setting, piping, pumps, units and aligning and other related services specific to HVAC systems maintenance and repairs.
The Facilities Division is responsible for maintaining the heating, ventilation and air conditioning (HVAC) systems for the following DWSD locations:
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)
This contract will serve to ensure that all DWSD facilities labor, parts, supplies and equipment (upon request) are returned serviced and maintained in safe and efficient operational condition. During the course of this contract this contractor has conducted an inspection of existing units, and has made recommendations to replace certain equipment.
JUSTIFICATION
The Facilities Division is requesting additional funds to allow for the continued maintenance, repairs, and services of DWSD HVAC systems for the remaining term of the contract (through August 22, 2019).
A new contract (6002217) is also being presented to the BOWC under a separate board letter requesting approval to utilize a cooperative purchase agreement through Sourcewell-NJPA with Johnson Controls, Inc. to replace this contract upon expiration.
PROCUREMENT METHOD
This contract was competitively solicited as a Request For Proposals (RFP) in April 2017. Five (5) proposals were received. The contract was awarded to Johnson Controls, Inc It was approved by the BOWC on July 19, 2017. Change Order No. 1 to add $300,000.00 for materials was approved by the BOWC on October 18, 2017 and Change Order No. 2 to add $89,940.00 for the purchase and installation of two (2) AC units was approved by the BOWC on April 18, 2019.
SUMMARY:
A. Contract No.: 6000875
B. Contract Term: 8/23/2017 - 8/22/2019
C. Original Contract Amount: $1,926,020.00
D. Change Order No. 1 Amount: $ 300,000.00
E. Change Order No. 2 Amount: $ 89,940.00
F: Proposed Change Order No. 3 Amount: $ 225,000.00
G: Proposed Total Contract Amount: $2,540,960.00
H. Funding Source: O&M Funds
I. GL Strings:
5721-20244-487711-617900-900279-30129-0000-000000 - 30% Water
5821-20243-497711-617900-900280-30129-0000-000000 - 70% Sewer
Proposed Change Order No. 3 for Contract No. 6000875 was presented to the BOWC Finance Committee on July 9, 2019.