HomeMy WebLinkAboutFCS-12-132 - E12-056 Operations Division Revie
REPORT TO:
Jeff Willmer, Chief Administrative Officer
DATE OF MEETING:
2012-07-19
SUBMITTED BY:
Larry Gordon, Director of Supply Services, 2214
PREPARED BY:
Larry Gordon, Director of Supply Services, 2214
WARD(S) INVOLVED:
N/A
DATE OF REPORT:
2012-07-12
REPORT NO.:
FCS-12-132
SUBJECT:
E12-056 – Consultant Services – Operations Division
Operational Review
RECOMMENDATION:
That Expression of Interest E12-056 – Operations Division Operational Review, be awarded to
Dillon Consulting Limited, Ottawa, Ontario
at their estimated fee of $86,247., plus H.S.T. of
$11,212.11, for a total of $97,459.11, based on a satisfactory contract being negotiated and
upset fee being established.
BACKGROUND:
As it has been a number of years since a full review was performed within the Operations
Division, and due to the recent integration of the Division into the Kitchener Operations Facility
(KOF), it is the intent of this review to provide greater insight into the state of the services it
currently delivers and highlight opportunities that will result in an enhanced service delivery
model for the future.
Typically and traditionally, simple procedural (processes) and/or functional (tasks) reviews
would be recommended to determine “what is being done” and “how (well) is it being done”.
These reviews, which help highlight potential efficiency gains, are adequate to assess entities
that:
a) Have seen no organizational changes, and
b) Provide a fixed product/service offering, and
c) Have clearly defined product/service level expectations.
As none of the three previous points accurately reflect the Operations Division’s current
environment, it is asserted that a review of this type at this time would be inadequate,
inappropriate, and their results, inconsequential.
As the City of Kitchener’s Operations Division has, in fact, been impacted by an organizational
restructuring recently, and has numerous undefined service expectations, a more grass roots
“operational review” approach is considerably more prudent. An operational review’s objective is
to step back and assess the “effectiveness” of an entity by asking two distinct questions:
1. “Are the right things being done?”
2. “Are they being done the right way?”
It is the intent of this review to provide some meaningful answers to the previous two questions.
Combined with a Services Inventory and organizational overview of the Operations Division that
will be provided to them by Staff, the successful bidder of the Consulting Service is anticipated
to provide objective and critical insight, comparators, and/or recommendations into:
?
service provisions comparisons to at least three similar municipalities
?
the definition, requirements, and implementation impacts of Best Practices
?
alternative service provision mechanism
?
the assessment of the budgetary overages and/or funding deficits that the Operations
Division has seen (and been affected by) in recent years
REPORT:
In accordance with Chapter 170 of the Municipal Code pertaining to the Selection of
Professional Services/Consultants, a Consultant’s Review Committee was established
consisting of P. Houston, Deputy CAO, Infrastructure Services; J. Witmer, Director of
Operations; H. Gross, Director of Asset Management; C. Tasker, Internal Auditor; R. Thele,
Manager of Service Coordination and Improvement, Infrastructure Services; and L. Gordon,
Director of Supply Services.
Expressions of interest were advertised publicly in The Record, on the City of Kitchener website
and on the internet through the Ontario Public Buyers Association Electronic Tendering
Information System relative to this project. Documents were downloaded by thirty-eight (38)
st
interested parties, and by the closing date of Thursday May 31, 2012, twelve (12) responses
had been received.
th
The review committee (sans P. Houston) met on, Thursday, June 28, 2012, to review the
submissions and a shortlist of three (3) candidates was selected for further interviews. The
thth
Committee met on Tuesday July 10, 2012 and Wednesday July 11, 2012 to interview the
shortlisted candidates. The Committee elected to award the project to Dillon Consulting
Limited, Ottawa, Ontario.
The Committee rated consultants on the following criteria:
?
Qualifications/Expertise
?
Proposed Project Team
?
Effect of Interview
?
Cost of Consultant’s Fees
?
Variety and Quality of Disciplines In-House/In-Consortium
?
Effectiveness of work plan
A listing of the responding parties follows for your reference:
COVENCO Ltd. Don Mills ON
CRG Consulting Ottawa ON
Deloitte Inc. Kitchener ON
Dillon Consulting Limited Ottawa ON
EMA Canada Inc. Oakville ON
ForwardVu Solutions Inc. Toronto ON
GGA Management Consultants Toronto ON
KPMG LLP Hamilton ON
Maximus Canada Services Inc. Toronto ON
PSTG Consulting Inc. Toronto ON
ROCG Consulting Courtice ON
Stantec Consulting Ltd. Kitchener ON
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:
Financial Summary for Expression of Interest E12-056
Operations Division Operational
Review
Internal Order
#59500890
As at July 18,
2012
Estimated Cost for Capital Phase
of Work
EOI E12-056 costs, including
HST 97,459.11
less: HST rebate on
tender (9,694.16)
Net Cost Being
Awarded 87,764.95 A
Costs Incurred to Date -
Projected Costs to complete
this Phase -
Total Estimated Cost for this Phase of
Work 87,764.95 C
Budget for this Phase of
Work
City of
Kitchener 100,000.00
Total Budget for this Phase of
Work 100,000.00 B
Estimated Surplus/(Deficit) for this
Phase of Work (B - C)
12,235.05 D
The surplus amount (D) will remain in the account to offset costs associated with the implementation of
recommendations.
COMMUNITY ENGAGEMENT:
Not applicable.
ACKNOWLEDGED BY:
Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate
Services