Title
Proposed Amendment No. 1
Contract No. 1902659/SCN-0000418
Linear System Integrity Program
CIP # 170600 BCE Score: 76.80 / O&M
Body
Agenda of: September 23, 2026
Item No.: 2026-371
Amount: Original Contract $29,012,865.00
Proposed Amendment No. 1 5,500,000.00
Contract Amount $34,512,865.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: August 28, 2026
RE: Proposed Amendment No. 1
Contract No. 1902659/SCN-0000418
Linear System Integrity Program
Vendor: HDR Michigan, Inc.
Status: Amendment/Change Order
MOTION
Upon recommendation of Jody Caldwell, Chief Planning Officer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 1902659/SCN-0000418, Proposed Amendment No. 1, “Linear System Integrity Program” with HDR Michigan, Inc., at an increased cost of $5,500,000.00 for a total cost not to exceed $34,512,865.00 and an increased duration of 1,460 days for a total duration 3,650 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
In 2021, GLWA formally launched the Linear System Integrity Program (LSIP) that serves as GLWA’s flagship asset management initiative for both water transmission mains and wastewater conveyance infrastructure. Designed as a long-term, cyclical program, the LSIP was established based upon industry best practices in transmission main management and represents GLWA’s commitment to systematic, data-driven asset stewardship.
Under this program, GLWA has advanced a comprehensive transmission main inspection strategy that integrates visual and sounding evaluation, high-resolution condition assessment, above-ground survey work, and emerging technologies. To date, the LSIP has achieved the following inspection milestones:
• 22.5 miles of visual and sounding inspection
• 57.9 miles of high-resolution condition assessment (inclusive of 9.2 miles completed in 2019)
• 37.8 miles of above-ground survey
• 2.7 miles of inspection using pilot technologies
These inspection activities have generated critical data that directly informed renewal and repair decisions. As a result of LSIP findings, GLWA has completed the following asset renewal actions:
• Renewal of 57 segments designated as distressed
• Renewal of 20 segments identified in a state of incipient failure
• Renewal of 97 segments that had exceeded strength limits
• Renewal of a total of 3,886 feet of pipe
In total, 174 pipeline segments, identified through the LSIP as having failed or at high risk of imminent failure, have been proactively renewed. These interventions have prevented potential service disruptions, reduced emergency response risks, and supported the long-term reliability of GLWA’s regional system. The progress achieved to date demonstrates the value of the LSIP and the importance of maintaining continuity in its execution as GLWA continues strengthening its asset management capabilities.
Recently, the Linear System Integrity Program has shifted to a more comprehensive strategy that includes pipeline replacement for mains that have reached their effective useful life, decommissioning for mains that provide minimal value, while continuing the condition assessment and renewal of the remaining transmission system network. This shift to a comprehensive program highlighted the need for further resources to achieve the desired state; however, funding and timing of implementation of this strategy remain unknown.
JUSTIFICATION
GLWA has made substantial progress in advancing the LSIP, and HDR has been central to that success. Extending HDR’s contract for an additional four (4) years is critical to protecting the investments already made, ensuring continuity of operations, maintaining cost efficiencies, and reducing programmatic and operational risks. The work now entering the next phase of the program depends on the momentum, specialized knowledge, and technical infrastructure that HDR has developed. Transitioning to a new consulting LSIP program manager at this stage may create avoidable delays, introduce cost escalations, and compromise the consistency of GLWA’s asset management progress. In addition, because the path forward to achieve resources for the comprehensive LSIP (pipeline replacement, decommissioning, etc.), transitioning to a new contract for the LSIP program manager may be premature due to the significant unknowns in resources, funding, and timing.
A primary reason for extending HDR’s contract is the large amount of work already initiated that has not yet reached the execution phase. Numerous Task Order Authorizations (TOAs) and planned inspections have been developed and are awaiting field inspections, including:
• Marquette Main Condition Assessment
• 96” Transmission Main Condition Assessment Phases 1 and 2
• 84/72” Transmission Main Condition Assessment
• 42” Squirrel Road, Auburn Hills Condition Assessment
• Renewals support for the 120” pipeline
The planning efforts tied to these TOAs and inspection planning are specifically designed around HDR’s methodologies, staff knowledge, and technical workflows. If inspection responsibilities are shifted to a new consulting program manager during this transition between planning and execution, GLWA risks introducing inconsistencies in inspection methods, data interpretation, reporting, and potential scheduling delays. Retaining HDR during this phase ensures that pipeline inspection plans are executed by the team that designed them, reducing the risk of rework and preserving the integrity of the planning-to-execution pipeline inspections.
Concurrently with the recommended contract extension, GLWA will initiate a Linear System Integrity Program audit under a separate contract to validate the existing program practices and make recommendations for improvement of both consulting program manager activities and GLWA internal practices related to pipeline management.
The proposed contract extension provides GLWA with necessary time to plan and execute a responsible onboarding process for a future consulting program manager - without slowing down inspections. GLWA is proposing a structured, multi-year transition period to maintain inspection and renewal progress while soliciting and onboarding a new LSIP program manager with sufficient overlap to ensure program consistency. The proposed contract extension facilitates a phased handover to the next consulting program manager.
HDR has successfully met all contractual requirements to date and has consistently delivered work of satisfactory quality. To maintain continuity of the LSIP and protect the investments made in planning, data management, and program development, the Enterprise Asset Management Group (EAMG) recommends extending HDR’s contract for an additional four years, through August 31, 2031. The requested extension includes an additional not-to-exceed amount of $5,500,000.00. HDR has agreed to continue the annual price escalation on unit rates for the various staff assigned to this project by roughly 3%, in line with the existing contract yearly increases. In addition, subcontractor escalations of between 0-5% will also continue.
This proposed contract extension will enable GLWA to maintain program stability, ensure uninterrupted progress, and preserve consistency in the management and execution of the LSIP while continuing to pursue resources to expand to the newly developed comprehensive program under consideration.
PROJECT MANAGEMENT STATUS
Original Contract Time 2,190 days (09/01/2021 - 08/31/2027)
Proposed Amendment No. 1 1,460 days (09/01/2027 - 08/31/2031)
New Contract Time 3,650 days (09/01/2021 - 08/31/2031)
PROJECT ESTIMATE
Original Contract Price $29,012,800.00
Proposed Amendment No. 1 5,500,000.00
New Contract Total $34,512,800.00
FINANCIAL PLAN IMPACT
Summary: During the contract, certain tasks were identified that became part of capital improvement projects. These tasks totaled $1,700,000 and are reflected in the table below.
Funding Source: Operations and Maintenance (5910 - Water and 5960 - Wastewater)
Capital Improvement (5519-170600-170612)
Cost Centers: Asset Management (886201)
Construction (880000)
Expense Type: Contractual Professional Services (611200)
Contractual Professional Services - Water Only (611200)
Contractual Professional Services - Wastewater Only (611200)
Estimated Financial Plan by Year and Related Estimating Variance:
Fiscal Year O&M Capital Total
FY 2022 Amended Budget $1,565,600.00 $ 0.00 $1,565,600.00
FY 2023 Amended Budget 2,389,800.00 103,300.00 2,493,100.00
FY 2024 Amended Budget 1,222,400.00 623,600.00 1,846,000.00
FY 2025 Amended Budget 1,205,000.00 3,546,900.00 4,751,900.00
FY 2026 Amended Budget 1,009,000.00 3,335,200.00 4,344,200.00
FY 2027 Adopted Budget 1,265,000.00 2,992,500.00 4,257,500.00
FY 2028 Financial Plan 1,265,000.00 6,037,300.00 9,546,200.00
FY 2029 Financial Plan 1,265,000.00 311,000.00 1,576,000.00
FY 2030 Financial Plan 1,265,000.00 3,254,700.00 6,265,000.00
FY 2031 Financial Plan 1,265,000.00 520,000.00 1,785,000.00
Total Financial Plan $13,716,800.00 $20,724,500.00 $34,441,300.00
Initial Contract Award $19,931,000.00 $9,081,800.00 $29,012,800.00
Initial Contract task shift ($1,700,000.00) $1,700,000.00 0.00
Proposed Amendment No. 1 0.00 $ 5,500,000.00 $ 5,500,000.00
Total Contract Award $18,231,000.00 $16,281,800.00 $34,512,800.00
The gross award of this contract provides a potential unfavorable variance of ($71,500.00). Total financial plan of $34,441,300.00 less the maximum contract value of $34,512,800.00, which includes the original contract award plus this additional $5,500,000.00 request. This shortfall will be covered by future budget requests.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on September 9, 2026.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.