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The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Contract No. 6002290 for two years with OW Investors LLC, dba Mars Company to provide a large meter test bench upgrade for a total contract amount not-to-exceed $568,700 and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
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Agenda of August 21, 2019
Item No.: 19-00224
Contract No: 6002290
Contractor: OW Investors LLC, dba Mars Company, 3925 SW 13th Street, Ocala, FL 34474
Contract Total Amount: $568,700
Contract Term: 9/1/2019 - 8/31/2021 (2 years)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: DWSD Contract No. 6002290
Large Meter Test Bench Upgrade
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 Contract No. 6002290 for two years with OW Investors LLC, dba Mars Company to provide a large meter test bench upgrade for a total contract amount not-to-exceed $568,700 and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Meter Operations Division is responsible for the installation, maintenance and operation of water meters throughout the DWSD local retail system to measure customer water consumption. Accuracy of these meters is essential to ensure accurate billing, allocation of costs, stability of revenues, and reduction of non-revenue water losses.
Water meters require testing to ensure they are accurate both at the time of installation and throughout their lifecycle. This validation and verification is accomplished through testing meters on a test bench, which is an apparatus configured to send a precisely measured amount of water through a meter to compare the meter’s reading versus the known amount. Through this process, the accuracy of the meter can be obtained or verified and repeated for a variety of flow rates. Third party testing facilities exist, but DWSD maintains this capability internally.
Validating meters in advance of installation reduces inconvenience to DWSD customers and helps DWSD avoid labor intensive site visits. DWSD staff may test individual customer water meters at several key points through the life cycle of a meter:
• Upon delivery from manufacturer to ensure compliance with specifications
• At customer request due to consumption or billing disputes
• Upon removal from service to determine loss of accuracy over time
• Verification of new technology or new metering systems proposed by vendors
DWSD Meter Operations tests a sample population of all new meters received prior to installation to ensure they meet DWSD and American Water Works Association (AWWA) requirements. Meters that are tested and found to not meet accuracy requirements are returned to the manufacturer under warranty for replacement.
AWWA meter and operating standards recommend that testing equipment be sufficiently accurate to measure the actual quantity that runs through it to specific tolerances, and tanks and scales used for meter accuracy testing are calibrated at least annually. DWSD will be able to calibrate and certify the new test bench annually as recommended by the AWWA standards.
JUSTIFICATION
The existing test bench located at Central Services Facility was relocated from another DWSD facility in 1988, and is well beyond the original anticipated lifecycle. The aim of the improvement is to replace the existing test bench, supporting equipment and infrastructure so that it meets AWWA meter standards, thereby increasing confidence in meter testing results, facilitating improved asset management practices, providing a mechanism to defend test results from third party scrutiny and overall promoting more efficient operations. Meter Operations also believes the new test bench equipment will enable it to meet the future challenges of meter testing as new measurement technologies enter the market. The proposed contract will provide for the removal and disposal of old equipment, installation, calibration, certification, testing and training of new equipment.
PROCUREMENT METHOD
This contract was procured as a sole source exception to competitive solicitation due to Mars Company being the only qualified full service vendor for water meter test benches in the United States. The other vendor for test benches is only a material supplier. Therefore, Mars Company is considered a sole source.
SUMMARY
A. Contract Number: 6002290
B. Contractor: OW Investors LLC, dba Mars Company
C. Contract Term: 9/1/2019 - 8/31/2021
D. Contract Amount: $568,700
E. Funding Source: CIP Funds
F. GL String:
5721-20244-487711-645210-003461-30129-0000-000000
G. Projected Fiscal Year (FY) Contract Expenditures:
FY 20: $471,700
FY 21: $97,000
Proposed Contract No. 6002290 was presented to the BOWC Finance Committee on August 7, 2019. Per the Procurement Policy, no further approvals are required.