HomeMy WebLinkAboutFCS-12-049 - T12-010 Domestic Natural Gas Meter Regulator Retr1
Staff Report
KI~rCx~.~T~R Finance and Corporate Services Department www.kifthenerca
REPORT TO: Committee of the Whole
DATE OF MEETING: 2012-03-26
SUBMITTED BY: Larry Gordon, Director of Supply Services, 2214
PREPARED BY: Steve Rudak, Buyer, 2213
WARD(S) INVOLVED: ALL
DATE OF REPORT: 2012-03-19
REPORT NO.: FCS-12-049
SUBJECT: T12-010 Domestic Natural Gas Meter & Regulator Retrofit
Service
RECOMMENDATION:
That Tender T12-010 Domestic Natural Gas Meter & Regulator Retrofit Service, be awarded to
Lakeside Performance Gas Services Ltd., Mississauga, Ontario, at their tendered price of
$638,300.25, plus H.S.T. of $82,979.03, for a total of $721,279.28, with an option to renew for
two (2) additional twelve (12) month terms.
BACKGROUND:
Natural gas meter and regulator replacements is part of an on-going infrastructure renewal
program. Kitchener Utilities, through Measurement Canada, has identified the need for the
ongoing replacement of aged domestic natural gas infrastructure.
The estimated average annual spend over the past two (2) years was $257.991.
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.
Documents were downloaded by four (4) interested parties, and by the closing date of Thursday
March 8, 2012, one (1) tender had been received.
The tender was reviewed by B. Nash, Manager of Customer Relations, who elected to award
the project to Lakeside Performance Gas Services Ltd., Mississauga, Ontario.
The following tender was received:
Bid Price
Lakeside Performance Gas Services Ltd. Mississauga ON $721,279.28
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The unit price for service has increased 9.6% from the previous contract and the increased
value of the next contract is also the result of an increase in the number of replacements
required to be performed.
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:
Tender T12-010
Domestic Natural Gas Meter & Regulator Retrofit Service
Estimated Cost for this Phase of Work
Tender T12-010 costs, including HST 721,279.28
less: HST rebate on tender (82,979.03)
Net Cost Being Awarded 638,300.25 A
Costs Incurred to Date
Total Estimated Cost for this Phase of Work 638,300.25 C
Budget for this Phase of Work
Replacement Gas Meters 810,000.00
Stat Meter Non-Compliance 100,000.00
Total Budget for this Phase of Work 910,000.00 B
Estimated Surplus/(Deficit) for this Phase of Work
(B - C) 271,699.75 D
Any surplus funds will remain in these accounts to be used in future years.
COMMUNITY ENGAGEMENT:
Not applicable
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate
Services
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