DWSD also asks for contractors' qualifications, get their insurance info. After that, contracts submitted back in 4 to 5 days. Then they have Bid Evaluation meeting, Contracts and Grants and engineers will evaluate the contractors. Then they go to Board of Water Commissioners to get contract approval. Then send contracts over to city of Detroit various departments.
"Fair to say it's a very involved process, " says Blackwell.
"It's call Lowest Bid Process or RFP, "Request for Proposals," says witness.
A scope of work for DWSD could be contractor could be replacing water main and replacing it- example of scope of work.
General value of contacts between 2002 and 2008 was 2.7 billion. Between 40 and 60 contracts.
Being a Detroit-based business would get a percentage to apply towards ranking. It was a discount to the total bid amount. For example with $1 million bid, to get equalization credits, would reduce amount by 5% of $1million.
Detroit Based Business (DBB) or Detroit Headquartered Business (DHB). Detroit Based Business is in the city of Detroit and is a functioning business. Detroit Headquarter business is a business that is headquartered in Detroit. A business can be both DBB or DHB- DBB equalization credit is 2% and DHB is 3%.
There were no equalization credits for women or minority-owned businesses.
RFP- is the differential between lowest bid contracts. systems were you score proposals from 0 to 10, 0 being bad and 10 being the best. "You have to look at the piles of crap and see which is the least pile of crap in order for someone to get a 10," says the witness.
The bidders did not know of the weighting process in the 2002-2008 period.
Ability to perform work, organization, staffing and local and economic development are all weighted factors in the RFP process.
Contracting teams get credit for local and economic development participation. This guy paused and actually said "brain fart"....
Contractors need to submitted certifications given by Detroit Human Rights department. 35% is the wiight that is given to local and economic development. It climbed from 10 to 35%. The 35% is a percent established to give that criteria the contractor points related to how much participation they have with Detroit-based businesses. The more participation you have the better your score.
10:19AM Witness is still talking about percentages for weighting in awarding of contracts, Truly painful.
DWSD did not want to increase the local and development percentage too much because it might slant too much towards giving the job to someone not qualified enough.
After all the proposals are scored, they get a memo to the Director of the Department with the team with the highest ranking. Receive approval and then negotiate with the contractor. Then start the award process.
A special administrative order would be used to circumvent Board of Water Commissioners and city council or just city council. Would go directly to mayor's office for signature. Director between 2003 and 2008 was Victor Mercado.
Money comes from rate payers and bonds.
Contract CM 2012- Construction Management for replacement of water mains in downtown Detroit. Selecting a company to manage oversight construction. DWSD has some input along the line. On this contract they didn't go through bidding process, were told to give DLZ the contract.
June 26th 2003- contract document from Victor Mercado to Kwame. A special administrative order 2003. Construction Management was awarded to DLZ- a company DWSD had previously done business with.
Contract between City of Detroit Board of Water Commissioners and DLZ. Signed by Victor Mercado for DWSD and Prataj Ratadyaska (unsure on spelling) for DLZ. This was an umbrella contract. DLZ made recommendations about contractors who should do the water main work. There were 8 contracts under this umbrella contract.
January 8th 2004- document discusses 4 different contracts. Initial recommendation is for 1st 3 lowest bidders to get the contracts "The work for WS-650 Washington Blvd" to be offered to Ferguson.
Previous to this, Ferguson Enterprises had replaced water mains, excavation for the Archer administration.
Memo from Mercado on January 12th 2004. Lists Water system Contracts. Ferguson Enterprises recommended for WS 650 and 651.