HomeMy WebLinkAboutFCS-14-063 - T14-001 Cured in Place Sanitary Sewer Lining 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:
1,9,10
DATE OF REPORT:
2014-03-20
REPORT NO.:
FCS-14-063
SUBJECT:
T14-001 – Cured in Place Sanitary Sewer Lining Contract
RECOMMENDATION:
That Tender T14-001 – Cured in Place Sanitary Sewer Lining Contract, be awarded to
Insituform Technologies Limited, Hamilton, Ontario
at their tendered price of $245,850.,
including provisional items and contingencies of $60,350., plus H.S.T. of $31,960.50, for a total
of $277,810.50.
BACKGROUND:
The work required under this contract consists of trenchless rehabilitation of existing
deteriorated sanitary sewers using a method called Cured In Place Pipe Lining (C.I.P.P Lining).
Subsequent to the CCTV camera inspections of sanitary sewers, a priority list of the
deteriorated sanitary sewers has been created by the City staff. Staff reviews the available data
to determine the rehabilitation method for deteriorated sewers. The sanitary sewers selected for
trenchless rehabilitation, under this contract, have met the criteria for the Cured In Place Pipe
Lining.
Cured In Place Pipe (C.I.P.P) Lining is a continuous polyethelene liner that relines the existing
sanitary sewer with a liner that securely bonds to the existing pipe. The new liner gives the old
pipe new structural integrity that prolongs the life expectancy of the old pipe by up to 50 years.
Once the new liner has been installed, all of the service laterals will be drilled out by robotic
drills to restore the connections with the sanitary sewer. This method of construction requires no
open cut digging and can be completed without any major disruptions to the traffic and local
access.
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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 eleven (11) interested parties, and by the closing date
of Thursday March 6, 2014, three (3) tenders had been received.
The price for Cured in Place Sanitary Sewer Lining Contract has increased 10% 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
Insituform Technologies Limited Hamilton ON $277,810.50 *
PipeFlo Contracting Corp. Hamilton ON $412,190.10
Capital Sewer Services Inc. Hamilton ON $473,893.75
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 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 (Pipe Bursting).
Tender 14-001
Sanitary Sewer Cured in Place Lining
The total budget for all phases of this project is $ 376,100.00
Estimated Cost for this Phase of Work
Tender T14-001 costs, including HST 277,810.50
less: HST rebate on tender (27,633.53)
Net Cost Being Awarded 250,176.97 A
Projected Costs: Staff Time/Permitting/Material Testing 25,000.00
Total Estimated Cost for this Phase of Work 275,176.97 C
Budget for this Phase of Work
Sanitary Utility 376,100.00
Total Budget for this Phase of Work 376,100.00 B
Estimated Surplus/(Deficit) for this Phase of Work (B - C) 100,923.03 D
Balance in account, net of encumbrances (20,680.87)
Total Estimated Surplus/(Deficit) 80,242.16 E
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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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