Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6003270 to utilize OMNIA cooperative contract #EV2516 with KONE Inc. for preventative maintenance, service and repairs for all DWSD elevators for a total amount not-to-exceed $400,000 and a term of 44 months. 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 February 17, 2021
Item No.: 21-0381
Contract No: 6003270
Contractor: KONE Inc.
Address: 11864 Belden Court, Livonia, MI 48150
Total Contract Amount: $400,000
Contract Term: 3/1/21 - 11/30/24 (44 months)
Note: The cooperative contract includes 5 one-year renewal options (through 2029). DWSD will seek BOWC approval in the future to exercise renewal options prior to contract expiration should DWSD seek to extend the contract.
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6003270
Preventative Maintenance, Service and Repairs for DWSD Elevators
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 6003270 to utilize OMNIA cooperative contract #EV2516 with KONE Inc. for preventative maintenance, service and repairs for all DWSD elevators for a total amount not-to-exceed $400,000 and a term of 44 months. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND & JUSTIFICATION
The Facilities department is responsible for the repair and maintenance for all five (5) Detroit Water and Sewerage Department facilities. DWSD’s facilities have a total of 12 Elevators for daily operations;
o 6 Passenger and 1 Auto Freight Elevator at MOB
o 5 Hydraulic Elevators at CSF
Elevators bear the responsibility of transporting, employees, visitor’s, vehicles and material throughout the building. This maintenance contract will assist Facilities in getting preventative maintenance and repairs done in a timely manner when cars fail or are damaged by accidents. Monthly preventative maintenance will include but is not limited to; clean, examine, adjust, lubricate any and all parts of the elevators including, electrical and mechanical portions that assist the elevator to operate. The awarded contractor will assume all responsibility for the elevators, including any and all inspections/testing required by the State of Michigan and the City of Detroit.
This four-year contract will provide routine preventative maintenance along with as-needed parts, service and repairs.
Facilities is asking that KONE, Inc. be the awarded contractor, as they are currently the contractor conducting the rehab for the MOB Elevator Project (DBA Contract No. 6000154). The project currently encompasses a 1-year maintenance agreement, with each car as they are completed. For some cars, this will overlap and Facilities wants to eliminate the possibilities of having two separate contractors working on the same equipment. Additionally, Otis currently holds an Elevator contract with the City of Detroit, and has manpower issues with the added workload from DWSD.
PROCUREMENT METHOD
DWSD requisition #483935 was approved on 10/05/20. The DWSD Procurement Policy allows for participation in cooperative purchasing agreements from other public purchasing consortiums for competitively solicited contracts. OMNIA through the City of Kansas City, MO issued a Request for Proposals for elevator maintenance and services and awarded based on the highest ranked proposal. The contract term is through November 30, 2024 with the option to renew for five (5) additional one-year terms. The cooperative OMNIA Contract No. EV2516.
Prior to utilizing a cooperative contract, the DWSD Procurement Policy requires Detroit Based Businesses (DBB) and Detroit Resident Businesses (DRB) be provided an exclusive opportunity to submit a bid that is equal to or less than the price of the cooperative purchase agreement, provided the DBB or DRB will meet or exceed all terms and conditions of the cooperative agreement. To ensure compliance, DWSD Procurement issued an Invitation to Respond (ITR) on the MITN website on November 30, 2020 and required an intent to respond due on December 7, 2020 and closed December 16, 2020. The ITR opportunity was submitted to 107 companies subscribing to the relevant NIGP code(s). The ITR as viewed by 10 companies, yielded two intents to bid and only one bid was submitted by ThyseenKrupp, whom is not a DBB or DRB and does not qualify per the policy.
|
Vendors |
Total Bid |
Equalization |
|
|
KONE, Inc. (co-op) |
$198,000 |
N/A |
|
|
ThyssenKrupp |
$240,976 |
N/A |
Not a DBB or DRB |
KONE’s insurance is current, clearances expire January 12, 2022 and a formal contract document is not required.
SUMMARY
A. Contract Number: 6003270
B. Contractor: KONE Inc.
C. Contract Term: 3/1/21 - 11/30/24
D. Contract Amount: $400,000
E. Funding Source: O&M Funds
F. GL Strings:
5720-20167-482421-622900-000209-10743-0000-000000 - 30% Water
5820-20178-492421-622900-000230-15962-0000-000000 - 70% Sewer
G. Projected Fiscal Year (FY) Contract Expenditures:
FY 20-21: $50,000 FY 21-22: $125,000
FY 22-23: $125,000 FY 23-24: $100,000
This contract was presented to the BOWC Finance Committee on February 3, 2021. Per DWSD procurement protocol, Post-FRC review is required in addition to BOWC approval.