File No. 472/17042. TAP-Alger CF-Replace/Repair Propane Plant

The Michigan Department of Technology, Management and Budget (DTMB) and Department of Corrections are seeking a design-build contractor to replace and repair the propane plant at the Alger Correctional Facility located in Munising, Michigan. The project involves comprehensive restoration of the existing propane plant, including replacing the propane blending system, vaporizer, gas piping, and electrical connections to ensure compliance with current safety and code standards. Specific deliverables include removing existing equipment, installing new propane blending components, conducting a 24-hour burn test, performing a facility-wide equipment evaluation, and providing comprehensive documentation and staff training. A mandatory pre-bid conference and site tour was held on August 9, 2018, with bids due on August 22, 2018, at 2:00 p.m. local time. The contract requires a 120-calendar day completion timeline, with liquidated damages of $300 per day for delays beyond the substantial completion date of June 14, 2019. Bidders must obtain necessary permits and approvals from the State of Michigan's Bureau of Construction Codes and Bureau of Fire Services, and demonstrate technical capability to perform complex propane system replacement and integration.

The contract includes specific provisions for disadvantaged and local business participation, requiring 50% Michigan resident workforce and opportunities for Qualified Disabled Veteran (QDV) businesses. Bidders must submit a 5% bid guarantee and performance and payment bonds for contracts over $50,000. The project includes a Not-To-Exceed Bid structure with a provisional allowance of $25,000 for incidental work, and compensation categories covering design services, construction, trade labor, subcontractors, general conditions, overhead, and profit. Bidders must complete a LEIN (Law Enforcement Information Network) request at least five business days prior to the site visit, with only one representative per bidder permitted to attend. Contractors must comply with federal and state agency codes, including EPA, OSHA, DOT, LARA, DOC, DEQ, and MIOSHA standards. While specific budget details are not explicitly stated, the comprehensive scope and multiple compensation categories suggest a potentially significant project investment for the state of Michigan.