HomeMy WebLinkAboutFCS-14-003 - T13-080 - Gas & Water Infrastructure Locates
REPORT TO:Committee of the Whole
DATE OF MEETING:
2014-01-27
SUBMITTED BY:
Larry Gordon, Director of Supply Services, 519-741-2200
ext. 7214
PREPARED BY:
Steve Rudak, Buyer, 519-741-2200 ext. 7213
WARD(S) INVOLVED:
All
DATE OF REPORT:
2014-01-13
REPORT NO.: FCS-14-003
SUBJECT:
T13-080 – Gas & Water Infrastructure Locates
RECOMMENDATION:
1010360 Ontario
That Tender T13-080 – Gas & Water Infrastructure Locates, be awarded to
Inc. o/a G-Tel Engineering, London, Ontario,
at their tendered price of $298,850., plus H.S.T.
of $38,850.50, for a total bid price of $337,700.50, 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 commence work on their projects. There is another peak in the fall
when they are completing 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.” Kitchener Utilities are currently unable to meet this requirement
during peak times.
Kitchener Utilities contracts out peak gas and water infrastructure locating requests to meet the
four working day requirement.
The average annual spend over the past three (3) years was $326,137.
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REPORT:
Tenders were advertised publicly on the City of Kitchener website and the Internet through the
Ontario Public Buyers Electronic Tendering Information System. Documents were downloaded
by twelve (12) interested parties, and by the closing date of Thursday November 21, 2013, three
(3) tenders had been received.
The following tenders were received: Bid Price
Down Under Pipe & Cable Locating Ltd. Rockwood ON $333,350.00
1010360 Ont Inc. o/a G-Tel Engineering London ON $337,700.50 *
Olameter DPG Aurora ON $350,865.00
The price for locate notifications and the hourly labour rate increased 1.5% from the previous
contract.
The lowest tender received from Down Under Pipe & Cable Locating, does not meet certification
requirements of the Ontario Regional Common Ground Alliance (ORCGA), as they are not
Certified Damage Prevention Technicians. Legislation requires the City to be competent
therefore the successful vendor’s staff must have ORCGA certification.
The tenders were reviewed by A. Mick, Utilities 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.
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FINANCIAL IMPLICATIONS:
The net cost for this tender (A), is fair and reasonable for a purchase of this scope and the upset
limit is within the budget allowance (B) provided within the budget. Funding for this project is
included within the approved operating budget. The estimated surplus (D) will remain within the
account.
Estimated Cost
Tender T13-080 costs, including HST 337,700.50
less: HST rebate on tender
(36,220.62)
Net Cost Being Awarded 301,479.88 A
Costs Incurred to Date
Projected Costs
-
Estimated Cost 301,479.88 C
Budget
Operating - Water Locates 175,000.00
Operating - Gas Locates 150,000.00
Budget for this Purchase
325,000.00 B
Estimated Surplus/(Deficit) (B - C)
23,520.12 D
COMMUNITY ENGAGEMENT:
Potential vendors are informed of bid opportunities through the public posting of bid documents
as outlined in the City’s Purchasing By-Law. Vendors, local media and the general public are
informed of purchasing recommendations to Council through the public reports which are
included with the Council agenda the week prior to the Council meeting.
ACKNOWLEDGED BY:
Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate
Services
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