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HomeMy WebLinkAboutFIN-10-058 - T10-008 Poly Pipe & Related Fittings for NG Distribution REPORT REPORT TO: Mayor Carl Zehr & Members of Council DATE OF MEETING: 2010-04-19 SUBMITTED BY: Larry Gordon, Director of Supply Services PREPARED BY: Steve Rudak, Buyer (2213) WARD(S) INVOLVED: N/A DATE OF REPORT: 2010-04-12 REPORT NO: FIN 10-058 SUBJECT: T10-008 Polyethylene Pipe & Related Fittings for Natural Gas Distribution RECOMMENDATION: That tender T10-008, Polyethylene Pipe & Related Fittings for Natural Gas Distribution, be awarded to Sandale Utility Products, Brantford, Ontario, at their adjusted tender price of $55,503.44, plus G.S.T. of $2,775.17 and P.S.T. of $4,440.28, for a total of $62,718.89 with an option to renew for three (3) additional twelve (12) month terms, subject to mutual agreement. BACKGROUND: This tender is based on fixed unit prices on an estimated representative sampling of components used over the last year and actual spend will depend on the level of construction activity throughout the term of the contract. Polyethylene pipe and fittings is an annual requirement for new build and replacement of aging infrastructure. The annual estimated spend per year, over the previous 3 years, was $81,801.79 REPORT: Tenders were advertised publicly in The Record, on the City of Kitchener website and the Internet through the Ontario Public Buyers Electronic Tendering Information System. Seven (7) potential bidders picked up tender documents, and by the closing date of Thursday March 11, 2010, five (5) tenders had been received. ï ·ª÷ ó ï Tenders received from Sandale Utility Products and Scarborough Supply had mathematical errors and were adjusted accordingly. Two (2) submissions were received from CR Wall which were both partial bids. The following tenders were received: Corrected Price CR Wall & Company Inc. Cambridge ON $10,447.82 Sandale Utility Products Brantford ON $ 62,728.89 $62,718.89 * KTI Limited Aurora ON $ 79,553.70 C.R. Wall & Company Cambridge ON $ 95,535.30 Scarborough Supply Whitby ON $101,156.33 $101,218.44 The tenders were reviewed by S. Rudak, Buyer, who concurs with the above recommendation. FINANCIAL IMPLICATIONS: The Materials will be held in inventory holding accounts and charged out as issued to Utilities. HST may be charged on all or part of the contract amount, although the exact impact is not determinable at this time. The project manager has confirmed that sufficient contingency exists within the project budget to fund the cost of the non-rebatable portion of the HST should it become applicable to this contract. ACKNOWLEDGED BY: Dan Chapman, General Manager of Financial Services and City Treasurer ï ·ª÷ ó î