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File #: 2021-470    Version: 1 Name:
Type: Resolution Status: Passed
File created: 12/1/2021 In control: Board of Directors Workshop Meeting
On agenda: 12/8/2021 Final action: 12/8/2021
Title: Contract No. 2004889 Specialized Services O&M & CIP# 232002 / BCE Score: 79.6
Sponsors: Cheryl Porter, Todd King
Indexes: Water Operations
Attachments: 1. 2004889 Procurement Report, 2. 2004889 Cost Tabulation - Notice of Respondents_, 3. 2004889 Vendor Response Follow-up

Title

Contract No. 2004889

Specialized Services

O&M & CIP# 232002 / BCE Score: 79.6

 

Body

Agenda of:                     December 8, 2021

Item No.:                     2021-470

Amount:                      Two Year Contract                                                               $11,389,132.00

                                          First Year Renewal Option                                                    5,694,566.00

                                          Second Year Renewal Option                         5,694,566.00

                                          Total Contract                                                               $22,778,264.00

 

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:                     December 1, 2021

 

RE:                                          Contract No. 2004889

                                          Specialized Services

                                          Vendor:  LGC Global, 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 Interim Chief Executive Officer (ICEO) to enter into Contract No. 2004889 “Specialized Services” with LGC Global, Inc., in the amount of $11,389,132.00 for a duration of two (2) years, with two (2) one (1) year renewal options at a cost not to exceed $5,694,566.00 for each renewal year for a total contract amount of $22,778,264.00; and authorizes the ICEO to take such other action as may be necessary to accomplish the intent of this vote.

BACKGROUND

Specialized services contracts have successfully been utilized to assist the authority with large maintenance and emergency projects to stay in compliance with state and federal regulations. They also provide the necessary support for urgent and emergency tasks that require immediate attention. Specifically, the GLWA’s major maintenance responsibilities include the performance of corrective (i.e., immediate/urgent/emergency), preventive (i.e., regularly scheduled intervals) and predictive (i.e., measured equipment operational intervals) maintenance on huge pumping units, motors, valves and related support equipment at the water treatment plants (WTP), water booster stations (WBS), pressure regulating valves (PRVs), remote sites, sewer lift stations and current combined sewer outfalls (CSO).

JUSTIFICATION

The purpose of this contract is to provide supplemental specialized services to GLWA, in terms of equipment and staff, to address various specialized tasks outside of the core, day-to-day operations and maintenance tasks of GLWA. Examples include dismantling and installing large (500 horsepower and above) pumps and motors as periodically required for maintenance, repair, and replacement. This is a replacement contract for CON-158 and was competitively bid as RFB-2004889. This contract will also provide staffing for storm watches at the Conner, Freud, and Bluehill sanitary/storm pump stations.

Specialized Services Contract No. 2004889 is needed to accomplish a number of emergency projects throughout the water treatment plants, water booster stations and wastewater collection system to keep these systems in compliance.  GLWA does not have sufficient equipment and staff necessary to perform all the crucial emergency specialized functions in addition to providing urgent and emergency maintenance work. An award of Specialized Services Contract No. 2004889 is crucial for the authority to augment its equipment and provide specialized services to maintain its facilities, and to comply with state and federal regulatory agencies’ directives assuring the health and welfare of GLWA customers in the areas of water treatment, water transmission, sewage transport, collection, and discharge. This contract gives GLWA the flexibility to bring on additional specialized resources when an urgent need or emergency arises.

FINANCIAL PLAN IMPACT

Summary: The proposed contract with LGC Global, Inc. encompasses primarily Operations & Maintenance expense with potential for Capital Expenses as well.  The FY 2022 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.  Sufficient funds will be provided in the Sewer Construction Fund as well as Operations & Maintenance (O&M) financial plan for this contract related to contractual operating services, contractual professional services, and repairs & maintenance.

 

Funding Source:  Operations & Maintenance (O&M) Budget
                     Sewer Construction Fund

Cost Center(s): Systems Control Operations..Centralized Services cost center 882301

                                                Field Service Operations….…Centralized Services cost center 882431

                                                Belle Isle Pump Station…..Wastewater Operations cost center 892342

                                                Blue Hill Pump Station….....Wastewater Operations cost center 892343

                                                Conner Pump Station……...Wastewater Operations cost center 892345

                                                Fischer Pump Station……...Wastewater Operations cost center 892347

                                                Freud Pump Station……….Wastewater Operations cost center 892349

                                                Woodmere Pump Station..Wastewater Operations cost center 892352

 

Expense Type(s):                                           Contractual Operating Services (617900)

                                                               Contractual Professional Services (617903)

                                                               Repairs & Maintenance-Equipment (622300)
                                                               Construction (616900)

Estimated Cost by Year and Related Forecasted Variance:  See table below.

Fiscal Year                                                                                                                                                    Amount

FY 2022 Budget (Prorated)                                                                      $1,010,000.00

FY 2023 Financial Plan                                                                                             6,060,000.00

FY 2024 Financial Plan                                               6,060,000.00

FY 2025 Financial Plan                                                                                              6,060,000.00

FY 2026 Financial Plan (Prorated)                                                   5,050,000.00

Financial Plan Forecast                                                                                               $24,240,000.00

Proposed Contract Amount                                                                     $22,778,264.00

Variance (positive/ (negative))                                                                                  $1,461,736.00

In the event this contract is utilized to support capital delivery projects, budget amendments may be prepared.

 

 

 

COMMITTEE REVIEW

This item was presented to the Operations and Resources Committee at its meeting on December 8, 2021. 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.