Title
Proposed Amendment No. 3
Contract No. 2304128/SCN-0000513
Boiler Operation and Maintenance Services at the Water Resource Recovery Facility
O&M
Body
Agenda of: November 20, 2025
Item No.: 2025-358
Amount: Original Contract $300,000.00
Amendment No. 1 300,000.00
Amendment No. 2 14,500.00
Proposed Amendment No. 3 1,800,000.00
Total Contract Amount $2,414,500.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: October 27, 2025
RE: Proposed Amendment No. 3
Contract No. 2304128/SCN-0000513
Boiler Operation and Maintenance Services at the Water Resource Recovery Facility
Vendor: ABM Industry Groups, LLC
Status: Amendment/Change Order
MOTION
Upon recommendation of Navid Mehram, Chief Operating Officer - Wastewater Operating Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 2304128/SCN-0000513, Proposed Amendment No. 3, “Boiler Operation and Maintenance Services at the Water Resource Recovery Facility, with an increase in cost of $1,800,000.00 for a total cost not to exceed $2,414,500.00 and an increased duration of 365 days for a total duration of 728 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA awarded a qualification-based selection procurement to ABM Industry Groups, LLC on November 1, 2024. This contract provides GLWA with the required boiler operations staff required by the City of Detroit. The original contract was $300,000.00 and was based on assumptions of estimated spend, as GLWA has traditionally relied on in-house personnel to provide boiler operations. Amendment No. 1, executed on March 13, 2025, extended the contract time and added additional funds. Amendment No. 2 also added additional funds. This amendment request is to extend the contract for another year while adding additional funding to the contract to support the expenses incurred from the 2024 season while also supporting the upcoming heating season.
JUSTIFICATION
Boiler operations are necessary for the operations of the Water Resource Recovery Facility (WRRF) to ensure uninterrupted operation and safety through the year. GLWA requires boiler operations staff to comply with the City of Detroit ordinance under the “Mechanical Code” (Article IV), which regulates boilers and pressure vessels for Detroit. Through attrition and a competitive labor market for boiler operators, a boiler operations contract was initiated to fulfill GLWA’s needs and comply with the city code requirements. To better manage costs while maintaining compliance and safety, GLWA, through discussions with the City of Detroit, has found opportunities to amend the classification necessary for the operations of the WRRF boilers and the number of individuals required to comply with the city requirements, to optimize resources. Additionally, the vendor will become familiar with the newly deployed NexGen Computerized Maintenance Management System (CMMS) and Workday application for more streamlined work management.
PROJECT MANAGEMENT STATUS
Original Contract Time 180 days (11/01/2024 - 04/30/2025)
Amendment No. 1 183 days (05/01/2025 - 10/30/2025)
Amendment No. 2 0 days (05/01/2025 - 10/30/2025)
Proposed Amendment No. 3 365 days (10/31/2025 - 10/30/2026)
New Contract Time 728 days (11/01/2024 - 10/30/2026)
PROJECT ESTIMATE
Original Contract Price $300,000.00
Amendment No. 1 300,000.00
Amendment No. 2 14,500.00
Proposed Amendment No. 3 1,800,000.00
New Contract Total $2,414,500.00
FINANCIAL PLAN IMPACT
Summary: The proposed amendment for boiler operation and maintenance was not anticipated during the completion of the current wastewater financial plan and therefore would exceed the budget for this service. Budget amendments may be required for this project. First offsetting other positive variances within contractual services, or other O&M budget areas, then from the unallocated reserve.
Funding Source: Operations and Maintenance Budget (5960)
Cost Center: Wastewater Director (892201)
Expense Type: Contractual Operating Services
Estimated Cost by Year and Related Forecast Variance:
Fiscal Year Amount
FY 2025 Amended Budget $205,252.14
FY 2026 Budget $103,528.88
FY 2027 Financial Plan (prorated) $207,057.76
Total Financial Plan $515,838.78
Maximum Requisitions $2,414,500.00
Forecast Variance (Negative)/Positive ($1,898,661.22)
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on November 12, 2025. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.