HomeMy WebLinkAboutFCS-14-062 - T14-030 Road Seal Resurfacing Contract
REPORT TO:
Committee of the Whole
DATE OF MEETING:
2014-03-31
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:
2,3,6
DATE OF REPORT:
2014-03-20
REPORT NO.:
FCS-14-062
SUBJECT: T14-030 Road Seal Resurfacing Contract
RECOMMENDATION:
Duncor Enterprises
That Tender T14-030 – Road Seal Resurfacing Contract, be awarded to
Inc., Barrie, Ontario
at their tendered price of $132,260., plus H.S.T. of $17,193.80, for a total
of $149,453.80.
BACKGROUND:
The purpose of the Road Seal Program is to maintain an acceptable level of service of the
roadway pavement quality for all of the city streets. The City of Kitchener’s roadway network is
evaluated in terms of surface distress, ride discomfort and structural adequacy. Collectively,
these evaluations determine an overall pavement quality rating, known as PQI (Pavement
Quality Index) for each road section within the entire road network. The results of this evaluation
process provides a prioritized pavement improvement program, which determines the year, in
which certain streets should be rehabilitated, and a recommendation on what type of
rehabilitation is best, and most cost effective for the streets included in this tender.
The streets selected for the road seal program are streets that are outside of the 10 year Capital
Reconstruction and roads resurfacing list. The road seal street treatment is applied to tar and
chip roads within the City that need to be sealed because of road tar surface bleeding and
stress cracking on the roadway. This product can be applied to 7 seperate streets totalling
approximately 3.4 kilometers of road within the 2014 budget. The road seal provides a surface
sealer that can extend the life expectancy of the road 5-7 years at a fraction of the cost of
rehabilitating the roads with all new asphalt. Please refer to the attached list of streets, which
will receive Road Seal Resurfacing under this tender.
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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 downloaded by nine (9) interested parties, and by the closing date of
Thursday March 6, 2014, two (2) tenders had been received.
The price for Road Seal Resurfacing has increased 29% from the previous contract.
The tenders were reviewed by R. Trussler, Engineering Construction Project Manager, who
concurs with the above recommendation.
The following tenders were received:
Bid Price
Duncor Enterprises Inc. Barrie ON $149,453.80 *
MSO Construction Limited Etobicoke ON $152,911.60
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:
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 but the upset limit
exceeds the budget allowance (B) provided within the budget. Additional funding for this purchase is
provided by the existing surplus balance in the account. The estimated surplus (E) will remain within the
project to fund future work.
Tender T14-030
Road Seal Resurfacing
The total budget for all phases of this project is $ 123,069.00
Estimated Cost for this Phase of Work
Tender T14-030 costs, including HST 149,453.80
less: HST rebate on tender (14,866.02)
Net Cost Being Awarded 134,587.78 A
Costs Incurred to Date -
Projected Costs: Staff Time/Permitting/Material Testing 9,000.00
Total Estimated Cost for this Phase of Work 143,587.78 C
Budget for this Phase of Work
Contribution from Revenue 22,069.00
Federal Gas Tax 101,000.00
Total Budget for this Phase of Work 123,069.00 B
Estimated Surplus/(Deficit) for this Phase of Work (B - C) (20,518.78) D
Balance in account, net of encumbrances 20,526.74
Estimated Surplus/(Deficit) 7.96 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
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