Title
Proposed Amendment No. 4
Contract No. 1900702
Grounds Maintenance Services
O&M
Body
Agenda of: May 24, 2023
Item No.: 2023-151
Amount: Original Contract Amount $1,679,388.00
Amendment No. 1 (Renewal) 848,894.00
Amendment No. 2 (Renewal) 948,894.00
Amendment No. 3 328,433.08
Proposed Amendment No. 4 338,795.00
Total Contract $4,144,404.08
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: April 28, 2023
RE: Proposed Amendment No. 4
Contract No. 1900702
Grounds Maintenance Services
Vendor: Premier Group Associates, LC
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. 1900702, Proposed Amendment No. 4, “Grounds Maintenance Services” with Premier Group Associates, LC, at an increased cost of $338,795.00 for a total cost not to exceed $4,144,404.08 and an increased duration of six (6) months for a total duration of four (4) years and six (6) months; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
In 2019, Grounds Maintenance Services was competitively bid and awarded to Premier Group Associates, LC (PGA). In April 2021, the first renewal term was approved as was the addition of Rialto Warehouse property. In April 2022, the second renewal term was approved as was the addition of three (3) new Water Resource Recovery Facility (WRRF) properties. In August 2022, Amendment No. 3 was approved to increase the contract amount to the agreed upon rate increases. This Proposed Amendment No. 4 is to extend the current contract to January 14, 2024 (additional 6 months) beyond the current expiration date of July 14, 2023, to cover Grounds Maintenance requirements while a new RFB contract is in process.
JUSTIFICATION
Contract No. 1900702 is scheduled to expire on July 14, 2023. The RFB for new Grounds Maintenance Services is currently in process (RFB No. 2204058). There is risk that the new contract may not be in place prior to the expiration of the existing contract. Ground Maintenance Service requirements are highest during the summer months and the risk of not having services can significantly impact GLWA: security, public safety, regulations, access to facilities, and aesthetics. The purpose of this extension is to ensure continuity of service during the transition time to the new contract.
PROJECT MANAGEMENT STATUS
Original Contract Time 2 years (07/15/2019 - 07/14/2021)
Amendment No. 1
(Renewal option 1) 1 year (07/15/2021 - 07/14/2022)
Amendment No. 2 1 year (07/15/2022 - 07/14/2023)
(Renewal option 2)
Amendment No. 3 0 years (07/15/2022 - 07/14/2023)
Proposed Amendment No. 4 6 months (07/15/2023 - 01/14/2024)
New Contract Time 4 years 6 months (07/15/2019 - 01/14/2024)
PROJECT ESTIMATE
Original Contract Price $1,679,388.00
Amendment No. 1 848,894.00
Amendment No. 2 948,894.00
Amendment No. 3 328,433.08
Proposed Amendment No. 4 338,795.00
New Contract Total $4,144,404.08
FINANCIAL PLAN IMPACT
Summary: The proposed contract with Premier Group Associates, LC. encompasses Operations & Maintenance expense only. The FY 2024 budget and five-year financial plan was based on the analysis of prior grounds maintenance service over past fiscal years. The value of the contract is within the current financial plan in total. Sufficient funds will be provided in the Operations & Maintenance (O&M) financial plan for this contract related to contractual buildings and grounds maintenance.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Center(s): Facility Operations…....Centralized Services cost center 882421
Expense Type(s): Contractual Buildings & Grounds Maintenance (617200)
Estimated Cost by Year and Related Forecast Variance: See table below.
Fiscal Year Amount
FY 2020 Budget $1,100,000.00
FY 2021 Budget 900,000.00
FY 2022 Budget 900,000.00
FY 2023 Budget 900,000.00
FY 2024 Budget (Prorated) 475,000.00
Financial Plan Forecast $4,275,000.00
Proposed Contract Amount $4,144,404.08
Variance (positive/ (negative)) $130,595.92
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on May 10, 2023. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This item impacts the shared services agreement OPS-008 between GLWA and DWSD.