Title
Proposed Amendment No. 2
Contract No. 1900702
Grounds Maintenance Services
O&M
Body
Agenda of: September 22, 2021
Item No.: 2021-357
Amount: Original Contract $1,679,388.00
Amendment No. 1 839,694.00
Proposed Amendment No. 2 109,200.00
Potential Amendment No. 3 848,894.00
Total Contract: $3,477,176.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Interim Chief Executive Officer
Great Lakes Water Authority
DATE: September 1, 2021
RE: Proposed Amendment No. 2
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 Interim Chief Executive Officer (ICEO) to enter into Contract No. 1900702 Proposed Amendment No. 2 “Grounds Maintenance Services” with Premier Group Associates, LC, with an increased cost of $109,200.00, with no increase in duration for a total duration of two years plus two renewal options; and authorizes the ICEO 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, GLWA acquired a new warehouse facility located at 19000 Rialto Drive in Melvindale, MI. The GLWA Facilities team, which manages many of the maintenance contracts for various GLWA facilities, contacted PGA to develop a scope and quote for the exterior grounds maintenance of the 5-acre facility also known as the GLWA Rialto Warehouse.
JUSTIFICATION
Contract No. 1900702 does not currently include the GLWA Rialto Warehouse, whereas this Proposed Amendment No. 2 reflects a scope change to cover grounds maintenance through the term of the contract for lawn cutting, weed removal from paved surfaces, spring and fall clean ups, removal of branches and debris on a regular basis. In the future, GLWA may choose to exercise Renewal Option No. 2 contained in the contract as a future amendment to the contract. This potential renewal cost is reflected in the Project Management Status below. Ultimately, if exercising Contract Renewal Option 2 is proposed, it will be brought to the Board for approval.
PROJECT MANAGEMENT STATUS
Original Contract Time 2 years (07/15/2019 - 07/14/2021)
Amendment No.1
(Renewal Option No. 1) 1 year (07/15/2021 - 07/14/2022)
Proposed Amendment No. 2 0 years
Potential Amendment No. 3
(Renewal Option No. 2) 1 year (07/15/2022 - 07/14/2023)
New Contract Time 4 years (07/15/2019 - 07/14/2023)
PROJECT ESTIMATE
Original Contract Price $1,679,388.00
Amendment No. 1
(Renewal Option No. 1) 839,694.00
Proposed Amendment No. 2 109,200.00
Potential Amendment No. 3
(Renewal Option No. 2) 848,894.00
New Contract Total $3,477,176.00
Currently, GLWA is in Renewal Option No. 1 (Amendment No. 1) which did not increase the total contract value previously approved by the Board.
Proposed Amendment No. 2 increases the contract value for Renewal Option No. 1 by $9,200.00 to take into consideration the addition of the Rialto Warehouse to the contract. In addition, $100,000.00 is being added as an Allowance to allow for potential unforeseen conditions, which could include adding additional sites.
If GLWA chooses to exercise Renewal Option No. 2 (Potential Amendment No. 3), the contract value for Potential Amendment No. 3 will also include $9,200.00 to take into consideration the addition of the Rialto Warehouse.
FINANCIAL PLAN IMPACT
Summary: The proposed contract with Premier Group Associates, LC. encompasses Operations & Maintenance expense only. The FY 2022 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 & 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 Estimating 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 Financial Plan 900,000.00
Financial Plan Forecast $3,800,000.00
Proposed Contract Amount $3,477,176.00
Variance (positive/ (negative)) $322,824.00
SAVINGS, COST OPTIMIZATION, AND REVENUE ENHANCEMENT IMPACT
The award of this contract provides a variance of $322,824 ($3,800,000.00 financial plan forecast less $3,477,176.00 proposed contract amount). Contractual services are dependent on several factors such as, delays in estimated start and end dates, environmental constraints, and other unforeseen circumstances that can cause the expenses to fluctuate from fiscal year to fiscal year.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on September 8, 2021. 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.