HomeMy WebLinkAboutFCS-15-123 - T15-035 Domestic Natural Gas Meter Regulator Retrofit Service
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: 2015-08-12
REPORT NO.: FCS-15-123
SUBJECT: T15-035 Domestic Natural Gas Meter & Regulator Retrofit Service
___________________________________________________________________________
RECOMMENDATION:
That Tender T15-035 Domestic Natural Gas Meter & Regulator Retrofit Service, be
awarded to Lakeside Performance Gas Services Limited, Mississauga, Ontario, at their
tendered price of $426,250.00, plus H.S.T. of $55,412.50, for a total of $481,662.50, for a
one (1) year period with an option to renew for two (2) additional twelve (12) month terms.
BACKGROUND:
Gas meters are mandated to be changed through regulation T-18 Measurement Canada. The
quantity of gas meter replacements can vary between 2,000 to 7,000 units annually.
The tender reflects a fixed cost to replace gas meters and regulators, the inspection of the
customers’ gas appliances and also gas and carbon monoxide escapes to ensure public
safety.
This tender is based on fixed unit prices for service and the average annual spend over the past
three (3) years was $644,139.60. The replacement of meters is cyclical in nature and it is
expected that upcoming year will have less replacements than the City has experienced when
compared to the previous three year average. The actual spend will depend on the level of
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 eight (8) interested parties, and by the closing date of Thursday June 11, 2015, two (2)
tenders had been received.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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The following tenders were received: Corrected
Bid Price Bid Price
Lakeside Performance Gas Services Ltd. Mississauga ON $481,663.50 $481,662.50*
Aecon Utilities Toronto ON $1,604,681.00 $1,604,685.88
The bid prices were reviewed for completeness and corrected for mathematical errors.
The price for retrofitting service has decreased 2% from the 2014 contract.
The tender was reviewed by B. Nash, Manager of Customer Relations, and S. Rudak, Buyer,
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 net cost for this proposal (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
project is included within the Capital budget. The estimated surplus (D) will remain within the
account to fund similar work conducted by the City.
Financial Summary for Tender T15-035
T15-035 Domestic Natural Gas Meter & Regulator Retrofit Service
Capital
Estimated Cost
Tender T15-035 costs, including HST $481,662.50
less: HST rebate on tender (55,412.50)
Net Cost Being Awarded 426,250.00 A
Costs Incurred to Date -
Projected Costs : Staff Time -
Estimated Cost $426,250.00 C
Budget
Replacement Small Gas Meters 434,775.00
Budget for this Purchase $426,250.00 B
Estimated Surplus/(Deficit) (B - C)
$8,525.00 D
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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
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