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.

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(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.

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(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."

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(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 Update, click here.

Walsh Construction Submits Low Bid on Springwells Upgrade Project (SP-563) (UPDATED)

Walsh Construction submitted the low bid earlier this afternoon on the project known as DWSD Contract SP-563 “Springwells Water Plant Rehab Project.” 

1. Walsh Construction . . . . . . . .$75,899,000 
2. Weiss Construction. . . . . . . . $81,676,000 
3. Christman Co. . . . . . . . . . . . . $85,728,000
4.  Barton Malow. . . . . . . . . . . . . $86,695,000

The Springwells job was originally advertised in April. The bid opening was delayed several times before today.

Update (9/26): The Board of Water Commissioners today approved a contract with Walsh Construction for this project for $75,899,000 and a duration of 1,710 calendar days. 

For more about DWSD Update, click here.

Springwells Water Plant Rehab Project (SP-563) Finally Out for Bids (UPDATED)

The Detroit Water and Sewerage Department today released bid documents for Contract SP-563, the long-awaited contract for upgrades to the Springwells Water Treatment Plant (WTP).   

Sealed bids will be received by DWSD on Tuesday, July 31, 2012* July 17, 2012 at the Water Board Building, 735 Randolph, Room 1510, Detroit, MI 48226. Click here for the Bid Advertisement.  Plans and Specs are available from DWSD. They're also on Dodge Reports (No. 200500879249.)

According to the Department's 2012-2016 Capital Improvement Program (CIP) budget, revised here in July, 2011, SP-563 is estimated to cost $121 million and take 4-5 years to complete. 

The Springwells Water Plant was originally authorized in 1924. When construction was completed in 1935, it was the largest self-contained water treatment plant in the world and added some 300 million gallons per day (MGD) to the Detroit system.

For more history of the Springwells WTP, click here, and here.

For more about DWSD Update, click here.

Update (5/22): The bid opening has been extended to July 3, 2012 at 2:00 p.m. per Bulletin 1.   

Update (5/31): The bid opening has been extended to July 12, 2012 at 2:00 p.m. per Bulletin 2.  The last day for questions is June 28, 2012. 

Update (6/12): The bid opening has now been extended to July 17, 2012 at 2:00 p.m. per Bulletin 3.  

Update (7/16): The bid opening has now been extended to July 31, 2012 at 2:00 p.m. per Bulletin 4. 

Detroit Water Board Approves 5 Year Capital Improvement Program (CIP)

At its July 27, 2011 meeting, the Board of Water Commissioners approved a $1.3 billion Capital Improvement Program (CIP) for 2012-2016. 

Of this amount, $740.4 million is earmarked for new construction and improvements to DWSD's water and wastewater facilities; $591 million is for projects that are already under construction.

Of the new construction funding, $422.5 million is designated for water projects, and $317.9 million is designated for wastewater projects. 

In early May, Deputy Director Darryl Latimer announced that DWSD would postpone revisions to the 2011-2015 CIP pending a detailed review of projects.  

After completing this review, a Draft CIP was submitted to the Board of Water Commissioners for approval at its July meeting.

During the July 27th meeting, a number of Commissioners expressed concern about the amount and timing of information provided to suburban (wholesale) customers of the Department.

• Commissioner Bryan Williams in particular expressed his concern that the CIP doesn't reflect current needs and that the whole process for approving capital projects should be changed radically. He recommended (i) starting the process earlier; (ii) providing a formal schedule for customer input; and (iii) circulating an original and red lined version of the CIP to show changes.
• Commissioner James Fausone echoed those concerns, that the wholesale customer base needed more time to review DWSD's proposed spending plans.
• Commissioner Fred Barnes reported hearing from suburban customers who hadn't seen the revised CIP and weren't involved in the process.

Deputy Director Daryl Latimer and Assistant Director James George indicated that suburban communities had been briefed about DWSD's capital spending plans through the Technical Advisory Committee (TAC), and that the CIP has generally not been subject to Board approval. 

Acting Director Chris Brown requested that the Board approve the revised CIP with the condition that the Assistant Director George answer the Commissioner's remaining questions. 

The Board approved the 2012-2016 CIP on a 6-1 vote. Commissioner Williams was the lone dissent.

Comment: While we haven't had time to thoroughly compare the updated CIP with last year's version, it appears that the Springwell's Water Treatment Plant (SP-563) project has survived and will be coming out for bids shortly.  The most recent list of proposed construction contracts indicates a September, 2011 bid advertisement date.

Among the projects that appear to have lost out, both the Flint Loop and North Oakland Transmission System (NOTS) water main project appear to have been cut. There is no money allocated to the oversight contracts (CM-2017 and CM-2016), which were previously awarded. 

Additional Resources:

• Water Supply System CIP - FY 2012-2016
• Sewage Disposal System CIP - FY 2012-2016
• Wastewater Master Plan - Volume 4: Capital Improvement Program

For more about DWSD Update, click here.

DWSD Suspends Upcoming Projects, New Strategic Plan in the Works

On May 3, 2011, the Detroit Water and Sewerage Department announced that it would revisit the spending outlined in its 2011-2015 Capital Improvement Program (CIP), for both water and wastewater construction projects.  The CIPs are updated annually; the last update was in July, 2010.

Deputy Director Darryl Latimer notes that DWSD "will be engaging in a detailed review of every project in the CIPS, striving to produce revised plans to be published by July 1 [2011]." 

Therefore, effective immediately, ALL projects that have not yet been initiated are to be halted until further notice. Work can only proceed with specific and formal authorization from the office of the Assistant Director of Financial Services prior to the final authorization from the Deputy Director. This includes task authorization of as needed services, amendments and new contracts.

Commentary: It is unclear whether Mr. Latimer's reference to "projects that have not yet been initiated" means some or all of the projects listed on DWSD's April, 2001 "Proposed Quarterly Construction and Consultant Contracts." If so, this would mean further delays in bidding and construction of the Springwells Water Treatment Plant 1958 Filter Rehabilitation Project (SP-563).  The Springwells WTP project is listed as a "New Project" in the July, 2010 Water Supply System CIP, with an estimated budget of $120 million.  This highly-anticipated project was to have come out for bids in late-2010, and then early-2011. Stay tuned as things develop.  

DWSD Strategic Planning Initiative - May 3, 2011

DWSD Design and Construction Contracts, List of Q3 (2010) Projects

DWSD has updated its list of Proposed Construction and Consultant Contracts for Q3 2010 here. Three of the projects listed are carry-overs from 2009; DWSD has included 10 construction projects, 7 of which are in the $5 million range.

The construction projects planned include:

• Consolidated Process Control System Upgrades for Treated Water System (PC-773A) (D/B)
• Consolidated Process Control System Upgrades for Treated Water System (PC-773B) (D/B)
• Springwells Water Treatment Plant 1958 Filter Rehabilitation and Auxiliary Facilities Improvement Project (SP-563) 
• Springwells Water Treatment Plant Discharge Header Pipe System Replacement (SP-567) (Repeat)
• Southwest Water Treatment Plant Rehabilitation of the Venturi Meters and Vaults (SW-551)
• Water System Improvements; Various Streets Throughout the City of Detroit (WS-648A) (Repeat)
• Parallel 42-Inch Water Main in 24 Mile Road, from Foss Road to Fairchild Road (WS-674) (Repeat)
• Water System Improvements; Various Streets Throughout the City (WS-680)
• Water Works Park Yard Piping Replacement (WW-536) 
• Specialized Process and Facilities Equipment Purchase Installation at Water Works Park (WW-537)