HomeMy WebLinkAboutFCS-14-086 - T14-014 Polyethylene Pipe Related FittingsStaff Report
rTC.�r R finance and Corporate Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: 2014 -05 -26
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: N/A
DATE OF REPORT: 2014 -05 -12
REPORT NO.: FCS -14 -086
SUBJECT: T14 -014 Polyethylene Pipe & Related Fittings for Natural
Gas Distribution
RECOMMENDATION:
That Tender T14 -014 Polyethylene Pipe & Related Fittings for Natural Gas Distribution, be
awarded as follows:
Schedule "A ": Natural Gas Fittings to C.R. Wall & Co. Inc., Cambridge, Ontario, at their
tendered price of $18,992.85, plus H.S.T. of $2,469.07, for a total of $21,461.92;
Schedule "B ": Natural Gas Polyethylene Pipe to Western National Gas Products Ltd., Surrey,
British Columbia, at their tendered price of $175,107.04, plus H.S.T. of $22,763.92, for a total
of $197,870.96;
with an option to renew for two (2) additional twelve (12) month terms.
BACKGROUND:
Polyethylene pipe and fittings is an annual requirement for new build and replacement of aging
infrastructure.
This tender is based on fixed unit prices on an estimated representative sampling of
components used over the last year.
The spend per year, over the previous 3 years, was $69,634.07. The actual spend will depend
on the level of construction activity throughout the term of the contract.
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 eleven (11) interested parties, and by the closing date of Thursday March 13, 2014, five (5)
tenders had been received.
The following tenders were received:
Bid Price Corrected Price
Tecvalco Limited Niagara Falls ON $187,394.97
Western National Gas Products Ltd. Surrey BC $224,771.45 $223,017.81
Sandale Utility Products Brantford ON $225,072.78
KTI Limited Aurora ON $325,045.33 $326,940.00
C.R. Wall & Co. Inc. Cambridge ON $495,865.11 *
The low bid received from Tecvalco Limited was only for Schedule "B ": Natural Gas
Polyethylene Pipe and was a partial bid for the section.
The tender from Western National is the lowest acceptable bid complete to specification for
Schedule "B ": Natural Gas Polyethylene Pipe.
The tender received from Sandale Utility Products is non - compliant as the prices bid do not
include the delivery cost to Kitchener.
The tender from KTI Limited is compliant, however, higher priced for both Schedule "A ": Natural
Gas Fittings and Schedule "B ": Natural Gas Polyethylene Pipe.
The tender from C.R. Wall & Company Limited is the lowest acceptable bid complete to
specification for Schedule "A ": Natural Gas Fittings.
Both Western National Gas Products Limited and KTE Limited had mathematical errors that
were corrected.
The price for Polyethylene Pipe & Related Fittings has increased 12% from the previous
contract in 2008.
The tender was reviewed by L. Jones, Utilities Engineer (Gas) and T. Gaber, Manager of
Operations (Utilities), who concur 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.
FINANCIAL IMPLICATIONS:
The Materials will be held in inventory holding accounts and charged out as issued to Utilities.
1.H. -2
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