Title
Contract Nos. 2204731-1 and 2204731-2
As-Needed Pump Repair Services for Water Treatment Plants
O&M
Body
Agenda of: October 25, 2023
Item No.: 2023-360
Amount: Contract No. 2204731-1
LGC Global, Inc.
Contract No. 2204731-2
Cleveland Pump Repair & Services, LLC
Total Amount $1,650,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: September 29, 2023
RE: Contract No. 2204731-1
As-Needed Pump Repair Services for Water Treatment Plants
Vendor: LGC Global, Inc.
Contract No. 2204731-2
As-Needed Pump Repair Services for Water Treatment Plants
Vendor: Cleveland Pump Repair & Services, LLC
MOTION
Upon recommendation of Cheryl Porter, Chief Operating Officer - Water and Field Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into two (2) contracts, Contract No. 2204731-1, “As-Needed Pump Repair Services for Water Treatment Plants” with LGC Global, Inc., and Contract No. 2204731-2, “As-Needed Pump Repair Services for Water Treatment Plants” with Cleveland Pump Repair & Services, LLC, for a combined total cost not to exceed $1,650,000.00 for a duration of three (3) years, with two (2) one (1) year renewal options for each contract; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA operates five (5) water treatment plants to provide drinking water to approximately 3.8 million people across southeast Michigan. Each of the water treatment plants includes multiple large pumps ranging from 24” x 30” to 84” x 100” and requiring from 1,500 HP to 5,500 HP motors. Both horizontal centrifugal pumps and vertical turbine pumps are included. The large pumps comprise low-lift pumps that bring raw water into the plants, filter wash-water pumps, and high-lift pumps that convey treated water from the plants into the water transmission system.
In repair and maintenance contracts, it has been found that it is in the best interest of GLWA to have two vendors working in tandem, for redundancy, to be available at any time for repair or service of pumps in our service areas. There may be times when one vendor or the other will not be able to handle repair or maintenance of a pump for one reason or another (such as the vendor may be at over capacity). These contracts will be issued on a unit price basis with no minimums or maximums guaranteed with either vendor. When the various pumps require repairs, GLWA will issue a task order to one of the selected contractors to remove, inspect, repair or rebuild, and return the pump to service.
JUSTIFICATION
The proposed pump contracts are vital for our organization's success, addressing the operational challenges we currently face. The investment in modern and efficient pump repairs will result in long-term benefits, including improved productivity and reliability, reduced maintenance downtime, enhanced safety, better operational performance, and increased production and capacity ultimately leading to operational efficiency.
FINANCIAL PLAN IMPACT
Summary: The proposed contract with LGC Global, Inc. and Cleveland Pump Repair & Services, LLC encompasses Repairs & Maintenance expense only. The FY 2024 budget and five-year financial plan was based on the previous contract period. The value of the contract is within the current financial plan in total. The financial plan will be adjusted accordingly during the FY 2025 budget preparation to align with the proposed contract amount. Sufficient funds will be provided in the Operations & Maintenance (O&M) financial plan for this contract related to repairs & maintenance - equipment.
Funding Source: Operations and Maintenance (O&M) Budget
Cost Centers:
Waterworks Park - 882131
Springwells Water Plant - 882141
Northeast Water Plant - 882151
Southwest Water Plant - 882161
Lake Huron Water Plant - 882171
Expense Type: Repairs & Maintenance - Equipment (622300)
Estimated Financial Plan by Year and Related Forecast Variance:
Fiscal Years Amount
FY 2024 Budget $325,000.00
FY 2025 Budget 331,000.00
FY 2026 Financial Plan 331,000.00
FY 2027 Financial Plan 331,000.00
FY 2028 Financial Plan 332,000.00
Financial Plan Forecast $1,650,000.00
Proposed Contract Amount $1,650,000.00
Variance (positive/(negative)) $0.00
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on October 11, 2023. 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.