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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. 6004659 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 duration of 5 years and a total contract amount not-to-exceed $409,842. 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 July 20, 2022
Item No. 22-0870
Contract No. 6004659
Contractor: Phoenix Environmental, Inc., 12815 Premier Center Court, Plymouth, Michigan 48170
Contract Amount: $409,842
Contract Term: 8/1/2022 - 6/30/2027 (5 years)
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. 6004659
Inspections, Parts, Maintenance and Repairs of DWSD owned Fuel Lines, Dispensing Equipment, Underground Storage Tanks and Related Fuel System Equipment
MOTION
Upon recommendation of Marqaicha Welch, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department, authorizes the Director to approve Contract No. 6004659 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 duration of 5 years and a total contract amount not-to-exceed $409,842. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
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.
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.
PROCUREMENT METHOD
The DWSD Supply Chain Department requested a piggyback on an existing City of Detroit Contract 6004396. The Office of Contracting and Procurement issued Request for Proposals (RFP) #181973 for repair service, labor and/or parts for active fuel sites and the upgrades, improvements or official closure for inactive fuel sites and underground storage locations on 2/4/22. The award to the lowest responsible bidder, Phoenix Environmental, was approved by City Council 5/24/22.
DWSD Procurement has confirmed that the vendor has agreed to the request to piggyback off the City’s contract and also confirmed that the DWSD work will not significantly change, alter or remove from their ability to provide services to the City of Detroit.
This contract was initiated through requisition #494512 which was approved by Budget on 7/6/22. The vendor’s insurance is current, and clearances are approved. Per DWSD procurement protocol, Mayoral Review will also be obtained.
SUMMARY
A. Contract No. 6004659
B. Contractor: Phoenix Environmental Inc.
C. DWSD Contract Term: 8/1/2022 - 6/30/2027
D. Contract Amount: $409,842.00
E. Funding Source: O&M
F. GL Strings: 5720-20169-484121-617900-000207-10790-0000-000000 - 100%
G. Projected Contract Expenditures:
FY 22-23: $81,968.40
FY 23-24: $81,968.40
FY 24-25: $81,968.40
FY 25-26: $81,968.40
FY 26-27: $81,968.40
Proposed Contract No. 6004659 was presented to the BOWC Finance Committee on July 14, 2022. Per the DWSD Procurement Policy, Mayoral Review will also be obtained.