HomeMy WebLinkAboutFCS-16-004 - T15-095 Natural Gas & Water Infrastructure Locate Service
REPORT TO: Committee of the Whole
DATE OF MEETING: 2016-01-25
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: 2015-12-11
REPORT NO.: FCS-16-004
SUBJECT: T15-095 Natural Gas & Water Infrastructure Locate Service
___________________________________________________________________________
RECOMMENDATION:
That Tender T15-095 Natural Gas & Water Infrastructure Locate Service, be
awarded to G-Tel Engineering, London, Ontario, at their tendered price of
$678,998., plus H.S.T. of $88,269.74, for a total of $767,267.74, for a one (1) year
term, with an option to renew for two (2) additional twelve (12) month terms.
BACKGROUND:
The City owns and maintains gas and water infrastructure within the City of Kitchener
boundaries and the Utilities Division is required to provide locate services for the
infrastructure. An increased volume of infrastructure locate requests occur in the spring
when contractors commence work on projects as well as in the fall when contractors are
completing work prior to winter.
The Ontario Regional Common Ground Alliance Underground Infrastructure Damage
Prevention Best Practices states "unless otherwise specified in law, the excavator calls
the one-call center at least four working days prior to beginning excavation". The
Technical Standards & Safety Authority Guidelines for Excavations in the Vicinity of Gas
Lines document states “except in emergency situations, requests for stakeouts or locate
information should be made at least four working days in advance.” Kitchener Utilities
are currently unable to meet this requirement due to resource levels and contracts out
gas and water infrastructure locating requests to meet the four working day
requirement.
*** 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 average annual spend over the past two (2) years was $390,327.43. The difference
between the historical average annual spend and the award amount is due to a
significant increase in locate work due in part to higher volumes of reconstruction work,
LRT construction and education of homeowners and contractors on obtaining locates.
The actual spend will depend on the level of activity throughout the term of the contract.
The unit price for locate work remains unchanged from the 2013 tender.
REPORT:
Tenders were advertised publicly on the Internet through the City of Kitchener website
and Ontario Public Buyers Electronic Tendering Information System. Documents were
downloaded by fifteen (15) interested parties, and by the closing date of Thursday
December 10, 2015, four (4) tenders had been received.
The following tenders were received:
Bid Price
G-Tel Engineering London ON $ 767,267.74*
Down Under Pipe & Cable Locating Ltd. Rockwood ON $ 991,575.00
multiVIEW Locates Inc. Mississauga ON $1,061,070.00
QX Locates Markham ON $1,753,579.20
The tender was reviewed by M. Ryan, Supervisor Loss Prevention & Maintenance, and
S. Rudak, Buyer, who concur with the above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the City’s strategic
vision through the delivery of core service.
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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 approved operating budget. The estimated
surplus (D) will remain within the account.
Financial Summary for Tender T15-095
Gas & Water Locates
Estimated Cost
T15-095 costs, including HST $767,267.74
less: HST rebate on tender (64,890.27)
Net Cost Being Awarded $702,377.47 A
Costs Incurred to Date
Projected Costs -
Estimated Cost $702,377.47 C
Budget
Operating - Water Locates $302,500.00
Operating - Gas Locates 402,500.00
Budget for this Purchase
$705,000.00 B
Estimated Surplus/(Deficit) (B - C)
$ 2,622.53 D
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the Council / Committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
Not applicable.
ACKNOWLEDGED BY:
Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
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