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The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6002749 for Project WS-710 with Major Cement Co., for Water System Improvements for Various Streets in Detroit for a total amount not-to-exceed $9,126,359.80 and a term of 2 years. This 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 April 15, 2020
Item No. 20-0106
Contract No. 6002749
Contractor: Major Cement Co. (DBB)
Address: 15347 Dale, Detroit MI 48223
Contract Amount: $9,126,359.80
Contract Term: 730 days (2 years) - anticipated start date of 8/1/2020
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. 6002749 / Project No. WS-710
Water System Improvements for Various Streets in Detroit
Major Cement Co.
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 DWSD Contract 6002749 for Project WS-710 with Major Cement Co., for Water System Improvements for Various Streets in Detroit for a total amount not-to-exceed $9,126,359.80 and a term of 2 years. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
DWSD Project No. WS-710 is part of an ongoing distribution piping system water main replacement program. The work consists of replacing nearly 32,400 linear feet of existing six through twelve-inch diameter water mains at selected locations in Detroit that have a history of frequent breaks and high maintenance cost. Lead services forecasted for replacement are 186 and represents 1.93 percent of the contractor’s bid. The aggregate forecasted length of lead services being replaced with copper within the public ROW is 3,320 linear feet and 4,861 linear feet on private properties. Lead services of one inch and less in diameter are replaced with one-inch copper tube; while existing lead services of 1.5-inches and 2-inches diameter are replaced with copper tube of the same diameter.
This water main replacement contract is one of a continuing series of contracts that replace the old water mains in the City of Detroit having an extensive history of leaks and breaks. Proposed Project No. WS-710 will provide the Detroit Water and Sewerage Department (DWSD) with the ability to continue its program of replacing aged water mains that have exceeded their intended service life. The new water mains and associated infrastructure will enhance the integrity of the DWSD Water System and ensure quality service to its customers. To protect the health and safety of our customers, existing lead water services are being replaced from the new water main all the way to the customer meter.
Proposed Contract 6002749, for Project WS-710, will continue the rehabilitation of water main to provide better services to citizens of Detroit and meet the needs of future City Development.
PROJECT OBJECTIVES / COSTS
The objective of the proposed Project WS-710 is to replace existing six through twelve-inch water main that have a history of leaks and breaks with approximately 31,902 linear feet of 8-inch and 479 linear feet 12-inch ductile iron water main, including fittings, valves, and hydrants. Additionally, existing Lead services will be replaced with copper from the water main to the customer meter. The number of Lead services forecasted for replacement is 186 and it represents 1.93 percent of the contractor’s bid. The aggregate forecasted length of Lead services being replaced with copper within the public ROW is 3,320 linear feet and 4,861 linear feet on private properties. Should additional Lead services be encountered over the course of the work, they shall also be replaced at the rates established in the Bid Schedule.
The water main replacement work is broken down as follows:
|
Street |
From |
To |
New Ductile Iron Water Main (LF) |
|
|
|
|
8-inch |
12-inch |
16-inch |
|
Schoolcraft |
Asbury Park |
Grand River |
7,387 |
10 |
|
|
Five Points |
Seven Mile |
McNichols |
4,974 |
|
|
|
West Chicago |
City Limits |
Brammel |
664 |
|
|
|
W. Outer Drive |
Joy Road |
Warren |
6,889 |
|
|
|
Warren Avenue |
Heyden |
Southfield Freeway (M-39) |
3,313 |
|
|
|
Chandler Park Drive |
Three Mile |
Cadieux |
7,256 |
469 |
|
|
Kelly Road |
Eastwood |
Glenwood |
1,419 |
|
|
|
|
|
Total: |
31,902 |
479 |
0 |
|
Project Total Piping: |
32,381 Linear Feet |
This is a State of Michigan Drinking Water Revolving Fund (DWRF) project and Federal requirements must be met for Disadvantaged Business Enterprises (DBE), and Davis-Bacon. With regard to DBE participation, prime contractors who bid on a DWRF-funded water main projects and who intend to use subcontractors must demonstrate good-faith procurement outreach efforts for Disadvantaged Business Enterprises (DBE) during the bidding period, which involves soliciting at least three disadvantaged subcontractors per trade, and documenting these efforts in the DBE forms found in the DWRF portion of the bid document specifications. The DBE forms and supporting documents were included in the successful bidder’s package in order to comply with DWRF program requirements.
PROCUREMENT METHOD
This contract was procured through a Request for Bids (RFB) per Requisition #472002 and was advertised on the Michigan Inter-Governmental Trade Network (MITN) website for 29 calendar days. MITN published this opportunity to 1,526 companies and 110 firms downloaded the bid package.
The Engineer’s Estimate for this work is $11,006,781.59. Four (4) bids were received:
|
Bidder |
Total Bid Price |
Equalization(s) Applied |
Equalization Credits |
Equalized Bid Total: |
|
Major Cement Co. |
$9,126,359.80 |
DBB 1% |
($91,263.60) |
$9,035,096.20 |
|
Lakeshore Global Corp |
$10,389,073.00 |
DBB 1% |
($103,890.73) |
$10,285,182.27 |
|
L. D'Agostini & Sons |
$12,766,353.73 |
N/A |
$0.00 |
$12,766,353.73 |
|
Ric-Man Construction |
$13,805,955.50 |
N/A |
$0.00 |
$13,805,955.50 |
Based on the information above, it is recommended that the contract be awarded to the lowest equalized responsive and responsible bidder, Major Cement Co, which is a certified Detroit Based Business.
SUMMARY
A. Contract No.: 6002749
B. Contractor: Major Cement Co.
C. Contract Term: 730 days (2 years) anticipated start date of 8/1/2020
D. Contract Amount: $9,126,359.80
E. Fiscal Year Breakdown: FY 20-21: $4,000,000.00
FY 21-22: $4,000,000.00
FY 22-23: $1,126,359.80
F. Funding Source: State of Michigan Revolving Drinking Water Fund
G. GL String: 5731-20301-487800-617900-900283-30129-0000-000000 - 100%
This proposed contract was presented to the DWSD Finance Sub Committee on April 1, 2020. Per the DWSD Procurement Policy, this will also be sent for Post FRC review in April.