HomeMy WebLinkAboutFCS-11-139 - T11-036 - Gas Pipeline constuction
REPORT TO:
Committee of the Whole
DATE OF MEETING: 2011-06-27
SUBMITTED BY: Larry Gordon, Director of Supply Services, 2214
PREPARED BY: Larry Gordon, Director of Supply Services
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2011-06-20
REPORT NO.: FCS-11-139
SUBJECT: T11-036 -Gas Pipeline Construction
www.kitchenerca
RECOMMENDATION:
That Tender T11-036, Gas Pipeline Construction, be awarded to Link-Line Contractors
Limited, Vaughan, Ontario at their tendered price of $4,778,632.40, including provisional items
and contingencies of $771,438.73, plus H.S.T. of $621,222.21, for a total of $5,399,854.61.
BACKGROUND:
The Gas Pipeline Construction Contract T11-036 addresses the need to install underground
polyethylene or steel gas mains and services to new customers or to replace aging or failing
existing piping, throughout all seasons. This work is needed to ensure that the City of Kitchener
homeowners and business owners all have equal and safe access to natural gas, if they require
it. It is the intention of Utilities, to have the contractor, maintain the roles and responsibilities as
the constructor for the various gas pipeline installation projects for the life of this contract.
Awarding a split contract was considered as a mechanism to improve contractor productivity
and reduce risk associated with poor performance by the contractor. However, the cost of
awarding the contract to Link-Line Contractors Limited alone is approximately 14% lower than
awarding a split contract.
REPORT:
Tenders were advertised publicly in The Record, the Daily Commercial News, on the City of
Kitchener website and the Internet through the Ontario Public Buyers Electronic Tendering
Information System. Fifteen (15) potential bidders downloaded tender documents, and by the
closing date of Thursday May 26, 2011, three (3) tenders had been received.
S~a~'Re~port
finance and Corporate Services department
61 iv) - 1
The following tenders were received:
Link-Line Contractors Vaughn ON
Aecon Utilities Toronto ON
Robert B. Somerville Co. Ltd King City ON
30%
$1,813,193.30
$2,166,263.23
$3,398,789.22
Bid Price
70%
$4,005,649.02
$4,775,567.31
$4,674,184.68
100%
$5,399,854.61
$6,238,710.56
$6,202,681.64
The tenders were reviewed by S. Eastman, Utilities Engineer and L. Jones, Utilities Engineer,
who concur 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 Internal Order 52000525, 52000453, 59500696, 59500265,
52000111- Gas Pipeline Construction
Financial report is attached.
Budget estimate is $4,778,566.
Any surplus funds will be used for future Gas Capital Upgrades.
COMMUNITY ENGAGEMENT:
Not applicable
Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate
ACKNOWLEDGED BY: Services
61 iv) - 2
Gas Pipeline Construction Contract T11-036
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Funding Sources
Current Balance as at June 09, 2011 4,635,472
2011 Budget Allocation
2012 Budget Allocation 450,000
Total Revenue Projected 5,085,472
Projected Expenditures
Tender Request 4,778,632
Existing Encumbrances 302,990
Total Expenditures Projected 5,081,623
Projected Surplus 3,850
Note: All amounts above are net of HST rebates.
111
2011 Budgeted amount already
included in Current Balance.
Any surplus funds will be used for future Gas Capital Upgrades
**This is a 2 year project, therefore funds for 2011 and 2012 are included in the revenue column above.
61 iv)-3