Title
Contract No. 6898
Commercial Janitorial Services
Body
Agenda of: June 20, 2018
Item No.: 2018-780
Amount: $1,118,678.00 1 Year
$1,097,692.00 First Year Optional Renewal
Total: $2,216,370.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: June 6, 2018
RE: Contract No. 6898
Commercial Janitorial Services
Vendor: GDI Omni, Inc.
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. 6898 (previously known as DWSD Contract No. 2904951) “Commercial Janitorial Services” with GDI Omni, Inc., at a cost of $1,118,678.00 for a duration of one (1) year; optional one (1) year renewal at a cost of $1,097,692.00; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Contract No. 2904951 was originally initiated as a Detroit Water and Sewerage Department (DWSD) contract, approved by the DWSD Board of Water Commissioners on February 25, 2015, prior to the bifurcation of GLWA/DWSD. As part of improving the efficiency and effectiveness of the previous DWSD and now GLWA, a job function assessment was conducted on several areas within the organization, and janitorial services was one of the areas studied. The results of the study indicated that janitorial services were determined to be a non-core function within the organization and would be best served by outsourcing this function. Accordingly, a competitively bid request for proposal (RFP) was issued for janitorial services, proposals received, and a cost comparison, savings analysis and project overview selection description were completed on December 16, 2014 (see attachment RFP# 48845 - Commercial Janitorial Services Project Overview). The two highest ranked proposers were selected for contracts to split the DWSD/GLWA facilities for janitorial services, Giant and GDI Omni, Inc. Subsequently, Giant’s contract was “terminated for convenience” and GDI Omni, Inc. absorbed Giant’s work load in addition to performing their original scope.
JUSTIFICATION
Included in GDI’s original three (3) year contract, approved by the Detroit Board of Water Commissioners February 25, 2015, were two (2) one-year renewal options. GDI’s performance overall has been successful.
Benchmarking was performed by obtaining current market pricing from the vendors who originally proposed to determine if GDI’s pricing remained an advantage to GLWA. The results of that survey are as listed in the Benchmarking Price Analysis table below. In summary, of the original seven (7) proposers, four (4) responded, two (2) lowered their previous price for the one-year optional renewal, and the other two (2) held their price to the 2015 levels.
BENCHMARKING PRICE ANALYSIS
Based on 7 GLWA Sites
Original 2015 Cost Proposal
Vendor Amount Submitted 2018 Pricing
GDI Omni $1,247,808.68 $1,118,678.00
Du All Cleaning $1,731,482.00 $1,515,747.40
Rikman Enterprises
(formerly Lakeshore-Rikman JVC) $3,134,062.00 $3,134,062.00
Jani-King $3,624,414.50 $3,624,414.50
CONTRACT AMOUNTS PRIOR TO AND AFTER BIFURCATION
Prior to Bifurcation - 12 Sites
Water Board Building, Central Services Facility, East and West Customer Service Centers, West Yard, 5 Water Treatment Plants, Water Resource Recovery Facility, and Industrial Waste Control
Contract Amount
DWSD Contract No. 2904951
(Split Contract)
April 6, 2015 - April 5, 2018
GDI Omni (8 sites) $2,179,820.00
Giant Janitorial (4 sites) $3,138,000.00
DWSD Contract No. 2904951 Amendment 1
(Combined Contract)
August 29, 2015 - April 5, 2018
GDI Omni (12 sites) $5,511,335.33
After Bifurcation - 7 GLWA Sites
5 Water Treatment Plants, Water Resource Recovery Facility, and Industrial Waste Control
GDI Omni rates submitted remained firm for the duration of the agreement. The cost for GLWA Contract No. 6898 for the period of January 1, 2016 - April 5, 2017 was for a total of $1,366,155.00.
Cost per Year
GLWA Contract No. 6898 - 7 Sites
April 6, 2017 - April 5, 2018 $1,128,180.00
One Year Contract - 7 Sites
April 6, 2018 - April 5, 2019 $1,118,678.00
Renewal Option - 6 Sites*
April 6, 2019 - April 5, 2020 $1,097,692.00
*7th site, Industrial Waste Control (Livernois Center) removed due to planned
relocation to Water Resource Recovery Facility
FINANCIAL PLAN IMPACT
Summary: The proposed procurement of janitorial services is within the FY 2018 to FY 2020 budgeted and forecasted amounts for contractual services.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Centers: Water Works Park Water Cost Center 882131
Springwells Water Plant Water Cost Center 882141
Northeast Water Plant Water Cost Center 882151
Southwest Water Plant Water Cost Center 882161
Lake Huron Water Plant Water Cost Center 882171
Wastewater Operations Sewage Disposal Cost Center 892221
Industrial Waste Control Sewage Disposal Cost Center 892231
Expense Type: Contractual Buildings & Grounds Maintenance (617200)
Estimated Cost by Year and Related Forecasted Variance: See table below.
Fiscal Year Amount
FY 2018 Budget - Prorated $280,630.00
FY 2019 Plan 1,118,460.00
FY 2020 Plan - Prorated to 04/05 823,590.00
Financial Plan Forecast $2,222,680.00
Maximum Contract 2,216,370.00
Positive Forecasted Variance $6,310.00
COMMITTEE REVIEW
This item is being presented directly to the full Board of Directors for consideration.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.