Saturday, September 29, 2012

Water Board Approves $142 Million in New Design-Build, Construction, Maintenance Contracts

During its regular meeting on Wednesday, September 26, 2012, the Detroit Board of Water Commissioners approved four (4) new contracts, including two design-build, one construction and one as-needed maintenance contract in the total amount of $142,340,715. Walsh Construction (Detroit) was low bidder and awarded two of these contracts. 
(1)  Design-Build Contract DWS-882, "SCADA Radio Network Upgrades" was awarded to Detroit Radio Team* for $7,995,090 and a duration of 1,095 calendar days. Proposals for this contract were originally submitted in March, 2011. 
For a variety of reasons, which Deputy Director Darryl Latimer outlined to the Board during the meeting, it took DWSD more than 18 months to award this contract. The Board was assured, however, that the Contractor would not seek a change order for increased costs due to this delay. DWSD normally asks bidders to hold their prices firm for 180 days to allow for Water Board and City Council approval.
(2)  Construction Contract SP-563, "1958 Filters Replacement and Facilities Rehabilitation at Springwells Water Treatment Plant" with Walsh Construction Company for $75,899,000 and a duration of 1,710 calendar days. 
This project was bid July 31, 2012 and took less than 2 months to be approved by the Board. During the Board's discussion of this contract, it was noted that the Springwells WTP was a major part of DWSD's water supply network, and that both the Northeast WTP and Southwest WTP were being looked at for future decommissioning. We first reported about this in August, 2011 (here) in the context of a CH2M Hill report on the subject.
(3) Construction Contract PC-790, "Equipment Purchase and Installation on an As-Needed Basis" with DeMaria Building Co. for an amount (NTE) $20,457,244 and a duration of 1,095 calendar days. 
This project was bid just one month ago on August 21, 2012. Commissioner Fred Barnes reported that while his committee recommended approval of this maintenance contract, he hoped it would be the last one. He later referred to the DWSD maintenance contract as a "dinosaur" and "hopes its goes extinct."
(4)  Design-Build Contract PC-791, "Sewage Sludge Incinerator Air Quality Improvements" with Walsh Construction Company for a cost (NTE) $37,989,471 and a duration of 1,676 calendar days.  
Assistant Director Sam Smalley reported during the Board Meeting that this contract involves upgrades to the 8 incinerators in Complex II, and is required to comply with new EPA regulations [40 CRF Part 60] that become effective in March, 2016. This contract also grew out of the March, 2012 Biosolids Management Symposium hosted by DWSD for academics and other experts in the field. The Department selected a design-build form of delivery, Mr. Smalley explained, to shorten the procurement process. Contract PC-791 is scheduled for completion by June, 2017.     
* (Update 10/5):  Detroit Radio Team is a Joint Venture between Motor City Electric and PCI (Process Control & Instrumentation, LLC). CDM Michigan is also reportedly part of this JV. 

For more about DWSD Updateclick here.

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