Title
Contract No. 1802166
Snow Removal and De-Icing Services
Body
Agenda of: July 25, 2018
Item No.: 2018-819
Amount: $1,131,150.00 One year
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: July 9, 2018
RE: Contract No. 1802166
Snow Removal and De-Icing Services
Vendor: Premier Group & Associates
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 Contract No. 1802166 “Snow Removal and De-Icing Services” with Premier Group & Associates (Premier) at a cost not to exceed $1,131,150.00 for a duration of one (1) year; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Contract Nos. 2917116 (Premier) and 2917117 (Lakeshore Global) were originally initiated as Detroit Water & Sewerage Department (DWSD) contracts, approved by the DWSD Board of Water Commissioners on November 15, 2015, prior to the effective date of the Regional Water Supply and Regional Sewerage Disposal Leases between GLWA and the City of Detroit.
Premier and Lakeshore Global were responsible for the attached list of GLWA sites.
The initial term for both Premier and Lakeshore Global contracts expired on November 18, 2017. Both contracts had two renewal options. GLWA has exercised the first renewal options under both contracts. For the final renewal option, Premier was interested in performing these services; Lakeshore Global was not.
It was in the best interest for GLWA to enter into a new one-year contract with Premier to provide snow removal and de-icing services for all sites referenced in the attachment. Doing so ensures that GLWA receives these critical services without interruption for the 2018-2019 winter season. A new solicitation for all sites in 2019 will result in the best pricing for GLWA.
JUSTIFICATION
The current agreement approved by the Detroit Board of Water Commissioners has one renewal option remaining. Based on Premier’s prior performance overall and to avoid an interruption of these services, it would be in GLWA’s best interest to enter into a one year contract with Premier to assume responsibility for the sites previously assigned to Lakeshore Global and allow for a new solicitation for the 2019-2020 winter season. Premier reduced its 2015 bid price for the sites previously maintained by Lakeshore Global; however, Premier’s quoted price for these sites is approximately $300,000.00 more than Lakeshore Global’s quoted price.
Amount Amount
Vendor Submitted Awarded 2018 Pricing
Premier Group
Groups 1 and 4 $245,025.00 $245,025.00 $245,025.00
Premier Group
Groups 2 and 3 2,212,125.00 0.00 886,125.00
Lakeshore Global
Groups 2 and 3 579,945.00 579,945.00 0.00
Premier Group
Groups 1 through 4 $1,131,150.00
FINANCIAL PLAN IMPACT
Summary: The proposed procurement of snow removal and de-icing services is within the FY 2019 budgeted amount for contractual services.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Center(s): Facility Operations Centralized Services Cost Center 882421
Expense Type: Contractual Buildings & Grounds Maintenance
(5910-882421.000-617200-WS7420)
Estimated Cost by Year and Related Forecasted Variance: See table below.
Fiscal Year Amount
FY 2019 Budget $1,280,000.00
Maximum Contract 1,131,150.00
Positive Forecasted Variance $148,850.00
COMMITTEE REVIEW
This item is being presented directly to the full Board of Directors for consideration.
SHARED SERVICES IMPACT
The proposed procurement of this item related to shared services element #OPS-008 - Detroit Only Sewer Pump Stations/CSO where the agreed upon Cost Methodology is that the cost assumptions are allocated to DWSD at 6% of the total amount for services.