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Home My WebLink AboutFCS-11-018 - T10-136 - Gas and Water Infrastructure LocatingS~a~ff Re~p~r~ I~~rc~~nT~~ Finance and Corporate Services 1~eparfinent www.kitchenerca REPORT TO: Committee of the Whole DATE OF MEETING: 2011-01-24 SUBMITTED BY: Larry Gordon, Director of Supply Services, 2214 PREPARED BY: Larry Gordon, Director of Supply Services, 2214 WARD(S) INVOLVED: All DATE OF REPORT: 2011-01-18 REPORT NO.: FCS-11-018 SUBJECT: T10-136 -Gas and Water Infrastructure Locating RECOMMENDATION: That tender T10-136, Gas and Water Infrastructure Locating, be awarded to 1010360 Ontario Inc., o/a G-Tel Engineering, London, Ontario, at their reduced tendered price of $247,787., plus H.S.T. of $32,213., for a total of $280,000. for one year, with an option to renew for two (2) additional twelve (12) month terms. BACKGROUND: Kitchener Utilities owns and maintains gas and water infrastructure within the City of Kitchener and is required to locate the infrastructure. Infrastructure locate requests are very heavy in the spring when contractors want to get started on their projects and there is another peak in the fall when they are trying to complete work prior to winter. The Ontario Regional Common Ground Alliance Underground Infrastructure Damage Prevention Best Practices states "unless otherwise specified in law, the excavator calls the one-call center at least four working days prior to beginning excavation". The Technical Standards & Safety Authority Guidelines for Excavations in the Vicinity of Gas Lines document states "except in emergency situations, requests for stakeouts or locate information should be made at least four working days in advance." We are currently unable to meet this requirement during peak times. Utilities wishes to proceed with contracting out the peak gas and water infrastructure locating requests to meet the four working day requirement. 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. Eight (8) potential bidders downloaded tender documents, and by the closing date of Thursday December 23rd, 2010, four (4) tenders had been received. Staff Re~p~r~ I~TC~~nT~,~ Finance and Corporate Services Department www.kitthenexca The following tenders were received: Bid Price Cable Control Systems Oakville ON $355,950.00 G-Tel Engineering London ON $426,631.50 Down Under Pipe & Cable Rockwood ON $457,650.00 Utility Marx Inc. Hamilton ON $516,975.00 The second low bid from G-Tel Engineering, London is being recommended The low bidder, Cable Control Systems of Oakville, is not being recommended as they did not provide required documentation with their tender submission relative to notification requirements, examples of completed locates, copies of certification (Damage Prevention Technicians), confirmation of ability to process locates from Ontario One Call, type of equipment to be used and ability to install/maintain ArcReader and there was no indication of any gas or water locating experience. The tendered amount has been reduced to meet the 2011 budget. The price for gas and water infrastructure locating has increased by 6% over the previous contract. Tenders were reviewed by A. Mick, Utilities Water Engineer, who concurs with the above recommendation. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Theme: Financial Management Strategic Direction: Ensure responsible use of public funds within a supportive policy framework. The City of Kitchener's purchasing policies and practices ensure openness, fairness and transparency in the procurement of goods and services. FINANCIAL IMPLICATIONS: Funding will be provided from cost centres 5018355 -Gas, 503380 -Water and 503350 - Watermain. Financial report is attached. Budget estimate is $280,000. COMMUNITY ENGAGEMENT: Not applicable Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate ACKNOWLEDGED BY: Services Contracted Services -Locating 2011 5018355 -Gas 5033380 -Water 5033350 - Watermain Cost Centre TOTAL Water Main Gas Water Eng Cleaning Funding sources: 2011 Budget 110,000 100,000 69,940 279,940 Projected Expenditures: G-Tel 110,000 100,000 70,000 280,000 110,000 100,000 70,000 280,000 Remaining surplus (deficit) - - (60) (60) Note: All amounts above are net of HST rebates.