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HomeMy WebLinkAboutFCS-14-168 - E14-064 Consultant Services - Impact Analysis of the Economic Development Investment Fund (EDIF) - Additional Information REPORT TO: Committee of the Whole DATE OF MEETING: 2014-09-15 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: N/A DATE OF REPORT: 2014-09-05 REPORT NO.: FCS-14-168 SUBJECT: E14-064 - Consultant Services – Impact Analysis of the Economic Development Investment Fund (EDIF) – Additional Information ___________________________________________________________________________ RECOMMENDATION: For information BACKGROUND: At the Monday August 25, 2014 Council meeting, Report No: FCS-14-156 – E14-064 – Consultant Services – Impact Analysis of the Economic Development Investment Fund (EDIF), was deferred with a request that the scope and fee estimate be reduced. The original report is attached for reference. HDR Decision Economics, Toronto, Ontario, reviewed all possibilities and reduced the scope and budget from their original proposal. Their proposal was based on a “multiple lines of evidence” approach and after some review, felt the scope could be reduced without jeopardizing the analytical integrity of the overall analysis. The following amendments were proposed: 1) Eliminate the “Comparator Cities” scope element for a fee reduction of $6,450.; 2) Eliminate the peer review component of the ROI scope element for a fee reduction of $3,550.; and, 3) Associated with item 2, there will be a travel expense saving of $1,000. The revised resolution, results in a fee reduction of $11,000. As such, HDR Corporation will conduct the “Impact Analysis of the Economic Development Investment Fund (EDIF)” with the revised scope of work at their estimated fee of $60,000., plus H.S.T. of $7,800., for a total of $67,800., based on a satisfactory contract being negotiated and an upset fee being established. 8.a. - 1 Should Council elect to award the contract on the basis of the revised estimate, the following resolution should be adopted: That Expression of Interest E14-064 – Consultant Services – Impact Analysis of the Economic Development Investment Fund (EDIF), be awarded to HDR Decision Economics, Toronto, Ontario with the revised scope of work at their estimated fee of $60,000., plus H.S.T. of $7,800., for a total of $67,800., based on a satisfactory contract being negotiated and an upset fee being established. 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: As outlined in the original report, the net cost of $61,056 after H.S.T. rebate will be funded from the Economic Development Investment Reserve Fund. COMMUNITY ENGAGEMENT: INFORM - 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 8.a. - 2