City announces details first $30 million in Proposal N demolition contracts have all been won by small Detroit companies

  • Nearly 1,400 properties slated for demolition in first round of bids; similar packages to be bid every three months
  • All 7 companies to win bids are Detroit-based, all have a 51% Detroit resident workforce hired for the contract work
  • Contracts will be submitted for approval to council next week; If swiftly approved, preliminary work can begin immediately, first demolitions will begin in spring
  • Contracts for first 300 rehab properties will go out for bid Tuesday

In asking the voters to Proposal N, city officials committed that a majority of the work done would be by Detroit companies.  Today, Mayor Duggan announced the first $30 million in demolition bid contracts have been awarded to 7 companies.  All 7 companies are small companies located in Detroit and each has hired a Detroit work force of more than 50% to do the work under these contracts.  The City’s new Demolition Department will be seeking City Council approval to hire seven Detroit-based or Detroit-headquartered companies – five of which are black owned – to conduct the first 1,380 demolitions paid for through Prop N bond funds.

Next week, the administration will submit to City Council 23 contracts – each with about 60 properties – for this work. Additionally, each of companies being recommended to City Council for contracts:

  • Are all Certified as Detroit Small Businesses or Micro Businesses
  • Have workforces made up of at least 51% Detroit residents at the time of procurement

The 7 Detroit companies selected through the city’s procurement process are:

Company                                            % of Detroiters performing demo work
Detroit Next                                       63%
Inner City Contracting                    56%
Juniors JR.                                          70%
Moss Company                                 82%
RDC Construction                            100%
Rickman Enterprises                       80%
SC Environmental                            65%

A full list of the 1380 properties can be found at www.detroitmi.gov/demolition

"I am happy about the amount of vendor interest we received in this first release of Proposal N demolition properties,” said Chief Procurement Officer Boysie Jackson. “We received more than 180 Bids from a large number of companies - old and new to the program - and the 7 companies selected scored highest in the process.”

Next week, the administration will submit to City Council 23 contracts – each with about 60 properties – for this work. Additionally, each of companies being recommended to City Council for contracts:

  • Are all Certified as Detroit Small Businesses or Micro Businesses
  • Have workforces made up of at least 51% Detroit residents at the time of procurement

If the contracts are approved by the end of January, abatement work can begin in February and Detroiters will begin seeing demolitions this spring, Jackson said.

Selected vendors for this round will be notified today and that the city would bid additional properties of similar size every three months.  Jackson added: “Vendors that will not receive awards in this first release will have the opportunity to bid for work in Release 2 and beyond.”

Jackson said that his office and the Demolition Department followed a rigorous process to ensure evaluations were fair. Vendors were prequalified based on their capacity and equipment, the bid tabulation process was completed as clearly described in the RFP, and the OCP Compliance and Audit Division audited the bid tabulation and equalization credit results to ensure compliance with the City’s procurement ordinance.

First rehab property bids go out next week

In addition to the resumption of large scale demolition work, the city will be releasing bids for the first 300 properties that will be cleared out in preparation for future renovation.  Under Proposal N, the City identified up to 6,000 properties that it expected to be able to save through renovations.  New groups of rehab candidate homes will be released approximately every three months, Jackson said.

51% Detroiter hiring
  • A significant part of the city contracting process is a requirement that more than half of each contractor’s workforce be made up of city of Detroit residents.  In collaboration with the Duggan administration, City Council approved a resolution to support inclusion of Detroit contractors and Detroit residents in Proposal N demolition and rehabilitation work. The procurement process for this round of contracts was completed in line with that Resolution, the City’s Procurement Ordinance and Executive Order 2020-5:
  • A contractor will meet the Workforce Target if Detroit residents account for more than 51% of the hours worked and the contractor pays for its Detroit employees to be trained under a DOL approved apprenticeship program.
  • Equalization credits were applied with goal of 50% packages being won by Detroit Certified Companies
  • 30% of the packages were set aside for small/micro businesses
How 1,300 demo properties were selected

Unlike the federal HHF demolitions, which were limited to certain areas of the city based on the density of occupied homes, the city now has the ability to conduct its demolitions in every city neighborhood.  To prioritize based on where demolitions will have the greatest impact, the city used the following criteria for selecting this round of 1,380 demolition targets:

  • Two occupied homes on either side of a blighted property (Occupied-Blighted-Occupied)
  • An occupied home next to a blighted one (Occupied-Blighted)
  • An occupied house is directly between two blighted houses (Blighted-Occupied-Blighted)
City Council support

Detroit City Council members, who fought hard to ensure that Detroit residents and Detroit based companies would benefit from Proposal N, offered their thoughts on this next phase of the city’s demolition program:

"I'm excited to see the lion's share of demolition and rehab work being done in neighborhoods that were missed by the blight removal efforts of the past.  It's even better that most of the work is going to Black-owned and Detroit-based contractors. This is a win-win-win for Detroit and another example of how residency has its privileges" – District 3 Councilmember Scott Benson

“Our top priorities as policy makers for the City should be improving the wellbeing of our neighborhoods and citizens. Prop N not only works to preserve and provide housing for Detroiters but also jobs by working with Detroit based contractors. Under Council’s purview, we will be ensuring that these demolitions are completed in a safe and timely manner and that priority is given to contractors who are headquartered in Detroit and employ Detroiters. Together, we can rebuild and strengthen our neighborhoods.” – Councilmember At Large Janee Ayers

“I am thrilled by today's announcement that among the first round of demolition contracts that Council will review and approve as part of the Proposal N blight remediation work, all the contractors will be Detroit contractors. When my colleagues and I voted to place Proposal N on the ballot, we did so with the stipulation that at least 50% of the contracts would go to Detroit contractors, so the fact that we have achieved 100% is truly astonishing. While more demo contracts are yet to be awarded as part of Proposal N, I am truly excited by this great start!” – District 2 Councilmember Roy McCalister

“Residents have waited far too long for these dangerous vacant properties to be razed and rehabbed and this is a huge step forward in providing long time residents and tax payers some relief.  I felt obligated to support Proposal N last year, especially given the number of quality Detroit contractors that I knew could do quality work, if they could just get a seat at the table. Today those companies are at the table and will soon find out that they've been awarded demo contracts in the city of Detroit. This is truly an awesome day in Detroit!" – District 7 Councilmember Gabe Leland

“Proposal N will be transformational for the City of Detroit. Demolishing dilapidated properties and rehabbing those we can save will improve the quality of life in every neighborhood. Additionally, this will secure our economic future with opportunities for Detroit based companies and Detroit residents to secure training and employment that can lead to lifelong careers. Once again, Detroit is a catalyst for progress in cities across America.” – District 4 Councilmember Andre Spivey