HomeMy WebLinkAboutFCS-15-120 - Contract Extension - Utility Meter Reading Services for T12-059
REPORT TO: Committee of the Whole
DATE OF MEETING: 2015-08-24
SUBMITTED BY: Michelle Palmer-Novakovic, Director of Supply Services
519-741-2200 ext. 7214
PREPARED BY: Steve Rudak, Buyer, 519-741-2200 ext. 7213
WARD(S) INVOLVED: All
DATE OF REPORT: 2015-08-07
REPORT NO.: FCS-15-120
SUBJECT: Meter Reading Services Contract Extension
___________________________________________________________________________
RECOMMENDATION:
That the Corporation of the City of Kitchener enter into an extension agreement with
Force Field Services Inc., Waterdown, Ontario, for one (1) additional twelve (12) month
term, at $385,480.53, plus H.S.T. of $50,112.47, for a total of $435,593.
BACKGROUND:
In September 2012, Force Field Services was awarded contract T12-059, for the provision of
meter reading services with an end date of September 2015.
In 2007, the City established SAP as the core financial system across the corporation with plans
to expand use to include the implementation of SAP’s Customer Relationship & Billing (CRB)
module. Key revenue staff is involved in the implementation of the CRB with the work scheduled
to be completed by January 2016.
The City would have normally conducted a competitive procurement at the present time,
however, a possible transition to a new service provider during an intensive system
implementation could create an exposure to the organization. Through a successful negotiation
Force Field Services has agreed to provide continued service at the prevailing prices.
The average annual spend over the past three (3) years pro-rated was $435,593.00
The actual spend will depend on the level of activity throughout the term of the contract.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
1. iii. - 1
REPORT:
The unit prices have remained firm since the 2012 tender and also remain firm for the one (1)
year extension. However, meter reading activity has increased as a result of new construction
and an increase in population.
The report has been reviewed by J. Evans, Director of Revenue, who concurs 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 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
service is included within the approved operating budget. The estimated surplus (D) will be
closed out to the Gas and Water utilities.
One (1) Year Extension of Contract
Supply Utility Meter Reading Services
Estimated Cost for this Tender
One (1) Year Extension costs including HST $ 435,593.00
less: HST rebate on tender $ (43,328.01)
Net Cost Being Awarded $ 392,264.99 A
Projected Additional Costs
Total Estimated Cost for this Tender $ 392,264.99 C
Budget for this Tender
5031010 630075 Revenue Utilities Contract Services
Operating Budget $ 500,000.00 B
Estimated Surplus/(Deficit) for this Tender (B - C) $ 107,735.01 D
COMMUNITY ENGAGEMENT:
Not applicable
ACKNOWLEDGED BY:
Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
1. iii. - 2