HomeMy WebLinkAboutFCS-16-083 - T16-021 Open Cut Trenching Directional Boring Related Services
REPORT TO: Committee of the Whole
DATE OF MEETING: 2016-05-16
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: 2016-05-04
REPORT NO.: FCS-16-083
SUBJECT: T16-021 Open Cut Trenching, Directional Boring & Related
Services
___________________________________________________________________________
RECOMMENDATION:
That Tender T16-021 Open Cut Trenching, Directional Boring & Related Services,
be awarded to G & B Cable Contracting Inc., Kitchener, Ontario, at their tendered
price of $1,069,240., plus H.S.T. of $139,001.20, for a total of $1,208,241.20, for a
one (1) year term, with an option to renew for two (2) additional twelve (12) month
terms.
BACKGROUND:
The trenching and boring for the installation of gas services, new gas main and
conversion services installation has historically been completed as a component of the
construction by a contracted gas pipeline construction vendor. Over 2014 and 2015,
the number of gas service requests has increased, resulting in increased costs and
delaying response times. To accelerate response, Kitchener Utilities began installing
gas services in new subdivisions in trenches excavated by the builders, using Gas
Distribution Technicians (GDTs). The GDTs installed over 600 new services in 2015
and staff anticipates there will be approximately 600-800 gas services installed in 2016.
In addition, the GDTs will begin to perform a portion of the new gas main and
conversion service installation. This contract is for trenching and boring work, which is
required before the GDTs can perform the new gas main and conversion service
installation. Having a portion of the work completed by Kitchener Utilities staff, with only
the trenching and boring services contracted out, will result in cost savings and more
timely service response.
*** 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 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 fifteen (15) interested parties, and by the closing date of Thursday
April 7, 2016, two (2) tenders had been received.
The following tenders were received:
Corrected
Bid Price Bid Price
G & B Cable Contracting Inc. Kitchener ON $1,208,241.20*
Flow Kleen Utilities Stoney Creek ON $1,295,109.89 $1,292,311.67
The prices were verified for mathematical accuracy and adjusted accordingly.
This change is anticipated to reduce overall cost related to new gas main and
conversion services installation and savings will be assessed over this contract.
The tender was reviewed by T. Gaber, Manager of Operations, S. Eastman, Utilities
Engineer, 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 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 purchase is included within the approved capital budget. The estimated surplus
(D) will remain within the account to fund similar work conducted by the City.
Financial Summary for Tender T16-021
Open Cut Trenching, Directional Boring & Related Services
Capital
Estimated Cost
Tender T16-021 costs, including HST $ 1,208,241.20
less: HST rebate on tender (139,001.20)
Net Cost Being Awarded $ 1,069,240.00 A
Projected Costs -
Estimated Cost $ 1,069,240.00 C
Budget
Available balance in Gas Pipeline Account 8,972,177.50
Less existing encumbrance for 2016 work (7,900,375.45)
Budget for this Purchase
$ 1,071,802.05 B
Estimated Surplus/(Deficit) (B - C) $ 2,562.05 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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