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HomeMy WebLinkAboutFCS-14-034 - T14-018 Water Street South Road ReconstructionStaff Report rTC.�r R finance and Corporate Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: 2014 -03 -03 SUBMITTED BY: Larry Gordon, Director of Supply Services, 519 - 741 -2200 ext. 7214 PREPARED BY: Larry Gordon, Director of Supply Services, 519- 741 -2200 ext. 7214 WARD(S) INVOLVED: 9 DATE OF REPORT: 2014 -02 -18 REPORT NO.: FCS -14 -034 SUBJECT: T14 -018 —Water Street South (King Street West to Joseph Street) Road Reconstruction RECOMMENDATION: That Tender T14 -018 — Water Street South (King Street West to Joseph Street) Road Reconstruction, be awarded to 410754 Ontario Limited o/a Sousa Concrete, Branchton, Ontario at their tendered price of $571,554., including provisional items and contingencies of $59,130., plus H.S.T. of $74,302.02, for a total of $645,856.02. BACKGROUND: Engineering Services is proceeding with the reconstruction of Water Street from Joseph Street to King Street. The infrastructure has reached the end of its useful life and is in need of replacement. The project involves the replacement of surface works including road, curb and gutter and sidewalk and minor sewer work. The work also includes the installation of pedestrian lighting. REPORT: Tenders were advertised publicly in the Daily Commercial News, on the City of Kitchener website and the Internet through the Ontario Public Buyers Electronic Tendering Information System. Documents were picked up by fifteen (15) interested parties, and by the closing date of Thursday, February 13, 2014, five (5) tenders had been received. Iii. - I The tenders were reviewed by K. Cobbe, IBI Group, the City's Consultant for the project, and K. Mick, Design and Approvals Engineer who concur with the above recommendation. The following tenders were received: Bid Price 410754 Ontario Limited o/a Sousa Concrete Branchton ON $645,856.02 Steed and Evans Limited St. Jacobs ON $751,000.00 Sierra Construction (Woodstock) Limited Woodstock ON $756,860.04 Network Sewer and Watermain Ltd. Cambridge ON $833,970.89 Bel -Air Excavating & Grading Ltd. Cambridge ON $1,079,656.69 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. 1 ii. - 2 FINANCIAL IMPLICATIONS: In addition to the costs anticipated in this tender, the design and implementation of these types of projects typically involves city staff and resources from across the corporation. These costs are included in the line item "Projected Costs: Staff Time /Permitting /Material testing ", and will be itemized when they exceed $125,000. Included in this line item are staff time and expenses for all city staff in support of the project such as Engineering, Kitchener Utilities, and Transportation Planning. The line item also includes all regulatory permitting, geotechnical and material testing, detouring and traffic control, alternate access and parking requirements and any other miscellaneous costs. Projects utilizing in -house staff will include costs for inspection during construction and contract administration. 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 purchase is included within the approved capital budget. The estimated surplus (E) will remain within the project to fund future work. Tender T14 -018 Water St Surface Reconstruction The total budget for all phases of this project is Estimated Cost for this Phase of Work Tender T14 -018 costs, including HST less: HST rebate on tender Net Cost Being Awarded Costs Incurred to Date Projected Costs: Staff Time /Material Testing Total Estimated Cost for this Phase of Work Budget for this Phase of Work Federal Gas Tax $ 987,366.00 645,856.02 (64,242.64) 581,613.38 A 34,619.00 616,232.38 C 679,750.00 Total Budget for this Phase of Work 679,750.00 B Estimated Surplus /(Deficit) for this Phase of Work (B - C) 63,517.62 D Estimated Surplus /(Deficit) from previous phases (48,529.15) Total Estimated Surplus /(Deficit) 14,988.47 E 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 1 H. -3