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HomeMy WebLinkAboutFCS-14-068 - T14-006 Queens Boulevard Road ReconstructionStaff Report rTC.�r R finance and Corporate Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: 2014 -04 -14 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 -04 -02 REPORT NO.: FCS -14 -068 SUBJECT: T14 -006 — Queens Boulevard (Rex Drive to Belmont Avenue) Road Reconstruction RECOMMENDATION: That Tender T14 -006 — Queens Boulevard (Rex Drive to Belmont Avenue) Road Reconstruction, be awarded to Sierra Construction (Woodstock) Limited, Woodstock, Ontario at their corrected tendered price of $2,110,102.98, including provisional items and contingencies of $234,738.50, plus H.S.T. of $274,313.39, for a total of $2,384,416.37. BACKGROUND: Engineering Services is proceeding with the reconstruction of Queens Boulevard (Rex Drive to Belmont Avenue). Funds for construction have been approved by Council as part of the 2014 budget. The infrastructure has reached the end of its useful life and is in need of replacement. The project involves the replacement of the roadway, curb and gutter and sidewalk and all underground services and surface works. Full funding for this project has been approved by council as part of the 2014 budget process. A surplus is projected in the project due to lower than anticipated construction pricing for the 2014 construction season. 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 five (5) interested parties, and by the closing date of Thursday March 27, 2014, four (4) tenders had been received. 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 Corrected Bid Price Sierra Construction (Woodstock) Limited Woodstock ON $2,385,589.73 $2,384,416.37 Bel -Air Excavating & Grading Ltd. Cambridge ON $2,472,442.74 $2,467,357.66 Sousa Concrete Branchton ON $2,472,442.74 Steed and Evans Limited St. Jacobs ON $2,695,050.00 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.H. -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 be returned to the Accelerated Infrastructure Replacement Program (AIRP) general account, and will be used to fund unexpected deficits in other Al RP projects. Tender T14 -006 Queen's Blvd Reconstruction (Rex to Belmont) The total budget for all phases of this project is Estimated Cost for this Phase of Work Tender T14 -006 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 Sanitary Utility Storm Water Utility Water Utility Intensification Allowance (DC) Total Budget for this Phase of Work Estimated Surplus /(Deficit) for this Phase of Work (B - C) Estimated Surplus /(Deficit) from previous phases Total Estimated Surplus /(Deficit) $3,152,717.00 2,384,416.37 (237,175.47) 2,147,240.90 A 77,765.00 2,225,005.90 C 1,123, 635.00 561,818.00 757,232.00 43,237.00 2,485,922.00 B 260,916.10 D 230,164.59 491,080.69 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 I.H. - 4