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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. 6002328 with Phoenix Environmental, Inc. for inspections, parts and as needed maintenance and repairs of DWSD owned fuel lines, underground fuel storage tanks and related fuel system equipment for a total contract amount not-to-exceed $305,000 for a term of two (2) years 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 September 18, 2019
Item No. 19-00238
Contract No. 6002328
Contractor: Phoenix Environmental, Inc., 12815 Premier Center Court, Plymouth, Michigan 48170
Contract Amount: $305,000
Contract Term: 9/1/2019 - 6/21/2021 (1 year and 9 months)
TO: The Honorable, Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Proposed DWSD Contract No. 6002328
Inspections, Parts, Maintenance and Repairs of DWSD owned Fuel Lines, Dispensing Equipment, Underground Storage Tanks and Related Fuel System Equipment
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. 6002328 with Phoenix Environmental, Inc. for inspections, parts and as needed maintenance and repairs of DWSD owned fuel lines, underground fuel storage tanks and related fuel system equipment for a total contract amount not-to-exceed $305,000 for a term of two (2) years and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The DWSD Supply Chain Division is responsible for preventive maintenance, parts and service repairs for fuel lines, underground fuel storage tanks, dispensing equipment and related equipment at the CSF and West Yard locations. From time to time, maintenance or improvements are needed to meet regulatory or performance requirements. The Fuel Management System is essential to support DWD’s vehicles needed in daily operations. DWSD will be doing a separate contract to remove and replace any underground storage tanks beyond their useful life cycle.
JUSTIFICATION
DWSD owned vehicles and equipment utilize fuel for daily operations; therefore, a preventive maintenance and service repair contract is needed for DWSD to remain compliant with the State of Michigan’s Environmental Protection Agency (EPA). Per the U.S. Code, Title 42, Chapter 82, Subchapter IX, all owned underground storage tanks must follow industry codes and standards to eliminate a potential threat from leaks, contamination of groundwater; a major source of drinking water, routine maintenance, in addition to upgrading and completing necessary service repairs. In addition, the recent fuel leak at CSF has increased the urgency of getting a new contract in place quickly for DWSD.
PROCUREMENT METHOD
The City of Detroit competitively solicited for underground fuel system infrastructure inspections and management services via a Request For Proposals (RFP), which was posted on BidSync on October 20, 2015 and closed on November 17, 2015. The contract resulting from the RFP was approved by Detroit City Council on January 12, 2016 and took effect January 21, 2016. DWSD is requesting to piggyback off the City of Detroit’s contract to provide these services to DWSD Facilities under the same pricing, terms and conditions as the City’s contract; therefore, an Invitation to Respond (ITR) is not required.
SUMMARY
A. Contract No. 6002328
B. Contractor: Phoenix Environmental Inc.
C. DWSD Contract Term: 9/1/2019 - 6/1/2021
D. Contract Amount: $305,000
E. Funding Source: O&M
F. GL Strings: 5720-20169-484121-622900-000207-10790-0000-000000 - 100%
G. Projected Contract Expenditures:
FY 20: $152,500
FY 21: $152,500
Proposed Contract No. 6002328 was presented to the BOWC Finance Committee on September 4, 2019. Per the DWSD Procurement Policy, no other approvals are required.