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Detroit Water Department to re-bid contracts

DETROIT (WKZO) -- Detroit's water department will re-bid on a pair of contracts next month following a protest over how the agreements were awarded.

The City Council has voted to have the deal re-bid after one of the companies bidding on the project filed a protest. The three-year deal for sewer line repairs was originally awarded to Lakeshore Toltest in April, however within days of receiving the deal the company filed for bankruptcy.

The Detroit Water and Sewerage Department then awarded the contracts to Detroit-based Lanzo Companies, the second-highest bidder. Inland Waters Pollution Control filed a protest with the water department claiming the bids were improperly negotiated and awarded to Lanzo and the City Council has decided a re-bid would be the only fair way to resolve the matter.