Title
Contract No. 2100330
2022 Job Order Contract
Body
Agenda of: February 23, 2022
Item No.: 2022-046
Amount: $28,500,000.00
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: February 1, 2022
RE: Contract No. 2100330
2022 Job Order Contract
Vendors: Clark Construction Company
Commercial Contracting Corporation
De-Cal, Inc.
F.H. Paschen
J.F. Cavanaugh Company
LGC Global, Inc.
Major Cement Company
Weiss Construction Company, LLC.
MOTION
Upon recommendation of Navid Mehram, Chief Operating Officer - Wastewater Operating 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. 2100330, “2022 Job Order Contract” with multiple vendors, at a cost not to exceed $28,500,000.00 for a duration of three (3) years with the Option of Two (2) One-Year renewals; and authorizes the ICEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The 2019 Job Order Contract (JOC) has handled over 80 task orders since the inception of the contract. These task orders included nine (9) emergency task orders, and approximately 71 regular task orders. The emergency tasks included repair of the secondary water system failure for Oakwood CSO, chlorine header replacement at the Water Resource Recovery Facility (WRRF), sludge line repairs at scum building #4 at the WRRF, and several others that were extremely critical to sustaining the facility operations. Use of the JOC in the emergent conditions allowed GLWA to have contractor staff on-site in under four (4) hours and work towards a resolution to ensure continuity of operations. The regular bid 71+ task orders ranged in scope from full LED lighting upgrades for all CSO facilities, to gate repairs at the WRRF and CSO’s, to SCADA modifications and window replacements for the water treatment plants, and many different tasks in between.
Overall, over $16.4 million in tasks have been awarded since the contract inception with another $8 million in the planning stages. To date, 35 tasks have been completed and closed out, three (3) are substantially completed, and the remainder are in various stages of completion. Each of the original six (6) vendors participated in various opportunities to bid tasks. Three (3) of the original six (6) vendors have a combined 48 tasks between them, with the other three (3) vendors sharing the remaining 32.
Services provided under the JOC include, but are not limited to, general contracting for demolition, earthwork, asbestos & lead abatement, concrete, masonry, steel erection, interior/exterior finishes, painting, mechanical, HVAC, plumbing, fire protection, interior/site electric, roofing, glazing, instrumentation & controls, sewer cleaning & inspection, flatwork, paving, and pipeline construction. Each task will be competitively bid by a minimum of three (3) out of the eight (8) selected vendors. The selected vendors will compete with an understanding of the scope, approach, schedule, and budget elements being considered for responsiveness to the task. Each task will follow an initiation that routes it through the GLWA established procedures for proper oversight, budgeting, and execution. Once a task is awarded, a notice to proceed will be issued to a vendor authorizing a task and identifying the task value against the vendor’s PO issued to them during the contract award phase.
JUSTIFICATION
In our commitment to frequently bid and provide opportunities to the vendor community and to increase the number of Contractors able to provide pre-qualified construction services to GLWA, GLWA prepared a request for proposals and advertised it in 4Q 2021. This 2022 version of the Job Order Contract will streamline the procurement of relatively small purchase orders for maintenance and repair services. This JOC stands to meet organization needs in a timely and efficient manner in line with the Board’s request to improve project inception and completion cycle. Eight (8) proposals were received, and we have determined all eight (8) contractors are qualified to perform work under the JOC and propose to award an opportunity to participate in the JOC to each of the eight (8) respondents. This stands to increase opportunities for businesses in our region, which is also a goal of the Board.
This JOC has been evaluated by GLWA Legal and Procurement teams and meets GLWA Procurement Policies while simultaneously continuing the high level of service to the GLWA Operations & Maintenance teams who rely on quick turnarounds for contracted services to perform maintenance & repairs to GLWA Facilities. The tasks within this JOC revolve around operations & maintenance and serve to protect, preserve, and improve the performance of GLWA assets responsible for protecting the environment and meeting National Pollutant Discharge Elimination System (NPDES) permit requirements.
The maintenance & repair procurements are essential to continue meeting current demand, or regulatory requirements by keeping our infrastructure intact. By continuing the use of the next JOC contract, we will continue to allow GLWA Procurement, Legal, and Risk Management teams to focus more on procuring large capital improvement design and construction projects needed to preserve and obtain capacity/improvements necessary to meet future demands or regulatory requirements. This strategy will continue to allow all current and future procurement needs to have the priority and urgency they require.
FINANCIAL PLAN IMPACT
Summary: This contract will be available for Wastewater Operations Group, Water Operations, Field Services and Facility Operations maintenance tasks, and facilities renovations. The use of this contract will be controlled by consistent application of current requisition and approval practices whereby individual tasks requested are reviewed against the available budget by expense category and cost center. With these controls in place, this contract is within the financial plan.
Funding Source (depending on the task): The majority of the contract will be allocated to the Operations and Maintenance (O&M) budgets for Water (5910) and Sewer (5960). Additionally, Improvement and Extension (I&E) funds under Water (5506) and Sewer (5404) may be used for small capital projects such as equipment replacement and facility renovations.
Cost Centers (depending on the task): Different Groups will have this contract available for their use. As noted above, each Group will continue to utilize the current requisition process for budget control. These groups, including Wastewater Operations, Water Operations, Field Services, and Facility Operations, will be responsible for controlling their expenditures within their budget.
Expense Types (depending on the task):
Contractual Operating Services (617900)
Repairs & Maintenance - Buildings & Grounds (622200)
Repairs & Maintenance - Equipment (622300)
Repairs & Maintenance - Facilities (622400)
Capital Outlay (901100)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2022 Amended Budget (Prorated) $3,771,190.00
FY 2023 Financial Plan 14,743,700.00
FY 2024 Financial Plan 14,349,900.00
FY 2025 Financial Plan 15,165,400.00
FY 2026 Financial Plan 15,295,800.00
FY 2027 Financial Plan (prorated) 11,796,180.00
Total Financial Plan Forecast 75,155,170.00
Proposed Contract Amount 28,500,000.00
Forecast Variance (positive/ (negative)) $46,622,170.00
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on February 9, 2022. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
The proposed procurement of this item may be shared by the GLWA and DWSD as outlined in the Shared Services Agreement (OPS-008). This item is budgeted by both entities as noted above.