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HomeMy WebLinkAboutFCS-15-041 - T15-008 Siebert Avenue Road Reconstruction REPORT TO: Committee of the Whole DATE OF MEETING: 2015-03-23 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: 3 DATE OF REPORT: 2015-03-13 REPORT NO.: FCS-15-041 SUBJECT: T15-008 Siebert Avenue (Clark Avenue to Vanier Drive) Road Reconstruction ___________________________________________________________________________ RECOMMENDATION: That Tender T15-008 Siebert Avenue (Clark Avenue to Vanier Drive) Road Reconstruction, be awarded to Regional Sewer and Watermain Ltd., Cambridge, Ontario at their tendered price of $1,822,047.70, including provisional items and contingencies of $148,725., plus H.S.T. of $236,866.20, for a total of $2,058,913.90. BACKGROUND: Engineering Services is proceeding with the reconstruction of Siebert Avenue (Vanier Drive to Clark Avenue). Funds for construction have been approved by Council as part of the 2015 budget. The services were originally constructed in the 1950’s and are in need of replacement. The project involves the replacement of the roadway, curb and gutter and sidewalk as well as all underground services and surface works. The project is scheduled to begin April 13, 2015, weather permitting. 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 seven (7) interested parties and by the closing date of Thursday March 5, 2015, five (5) 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. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 1.i. - 1 The following tenders were received: Corrected Bid Price Bid Price Regional Sewer and Watermain Ltd. Cambridge ON $2,058,913.90 * J. Weber Contracting Limited Breslau ON $2,160,262.13 Network Sewer and Watermain Ltd. Cambridge ON $2,239,517.80 $2,239,517.86 G.R.T. Excavating Ltd. Woodstock ON $2,296,069.60 $2,296,352.16 Steed and Evans Limited St. Jacobs ON $2,298,420.00 The pre-tender estimate for this contract provided by IBI Group is $1,882,695.00 (excluding HST) which is on the low end of the bids received for this project.The tender prices for this project have a range of +/- 7%from the average, which indicates typical competition and tender results. 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.i. - 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. 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 AIRP projects. Tender T15-008 Siebert Ave Reconstruction The total budget for all phases of this project is: $2,578,842.00 Estimated Cost for this Phase of Work Tender T15-008 costs, including HST 2,058,913.90 less: HST rebate on tender (204,798.07) Net Cost Being Awarded 1,854,115.83 A Costs Incurred to Date Projected Costs: Staff Time 81,220.00 Total Estimated Cost for this Phase of Work 1,935,335.83 C Budget for this Phase of Work Sanitary Utility 996,135.00 Storm Water Utility 498,068.00 Water Utility 671,309.00 Total Budget for this Phase of Work 2,165,512.00 B Estimated Surplus/(Deficit) for this Phase of Work (B - C) 230,176.17 D Estimated Surplus/(Deficit) from previous phases (2,542.76) Total Estimated Surplus/(Deficit) 227,633.41 E 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 1.i. - 3