HomeMy WebLinkAboutFIN-19-057 - T19-116 Steel Pipe for Natural Gas DistributionREPORT TO:Committee of the Whole
DATE OF MEETING:2019-06-24
SUBMITTED BY:Margaret Fisher, Director of Procurement, 519-741-2200 ext. 7214
PREPARED BY:Alex Albrecht,Associate Procurement Specialist,519-741-2200ext.7216
WARD (S) INVOLVED:Wards1and2
DATE OF REPORT:2019-06-04
REPORT NO.:FIN-19-057
SUBJECT:T19-116Steel Pipe for Natural Gas Distribution
__________________________________________________________________________________________
RECOMMENDATION:
That Tender T19-116Steel Pipe for Natural Gas Distribution, be awarded to Comco Pipe
& Supply Company,Puslinch, Ontario, at their provisionalprice of $154,512.00,plus
H.S.T. of $20,086.56, for a total of $174,598.56.
BACKGROUND:
The past winter sawextremesustainedtemperatures, which Kitchener has not experienced in
several years. As a result, of this cold weather and the growth of the demands on the distribution
system, primarily in the residential market, the resulting low pressures within the natural gas
systempresented a concern, primarily in the north-west portion of the city.
premises. For this to be accomplished, the diameter of some of thepipe delivering the natural
gas needs to be increased. The pipe that is being quoted in this request is intended to be
installed directly downstream of the Graber District Regulator Station, which feedsthe most
affected areas. The desire is that once this pipe is installed, and increasing the outlet pressures
from Graber Station, the minimum deliverypressures in thenorth-west portion of the citywill
increaseby the predicted values.
Additional work will need to be completed on the natural gas distribution system in subsequent
future years to counteract the affects of further growth within the city.
REPORT:
As per clause 170.7.3 of the Purchasing By-law 2017-
Value, the Director of Supply Services shall submit a report to Council recommending award of
a purchase greater than $100,000 if any one or more of the following conditions apply: b. the
***This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994forassistance.
1.v - 1
As per clause 170.7.3 of the Purchasing By-law 2017-ss of Procurement
Value, the Director of Supply Services shall submit a report to Council recommending award of
a purchase greater than $100,000 if any one or more of the following conditions apply: c. only
one Bid was received in response to a Solicitatio
Tenders were advertised publicly on the City of Kitchenerwebsite. Documents were downloaded
by three(3) interested parties and by the closing date of Monday June 3, 2019,one(1) tender
had been received.
The following tenders were received:
Bid Price
Comco Pipe & Supply CompanyPuslinchON$ 174,598.56*
The tender was reviewed by L.Jones, UtilitiesEngineer,who concurs with the above
recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this
the delivery of core service.
1.v - 2
FINANCIAL IMPLICATIONS
The net cost for this tender (A), is fair and reasonable for a project of this scope and the
upset limit is within the funding available (B) for this project. Funding for this project is
included within the approved capital budgets. The estimated surplus (D) will remain within
the account to fund future purchases.
T19-116
Steel Pipe for Natural Gas Distribution
Estimated Cost for this project
Tender T19-116 costs, including HST174,599
less: HST rebate(20,087)
Net Cost Being Awarded154,512A
Total Estimated Cost 154,512C
Budget for this project
DƩğĬĻƩ wĻŭǒƌğƷƚƩ {ƷğƷźƚƓ 288,000
Total Budget for this purchase288,000B
Estimated Surplus/(Deficit) for this Phase of Work (B - C)133,488D
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department
1.v - 3