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HomeMy WebLinkAboutFCS-16-105 - T16-036 Natural Gas Pressure Regulators, Meter Bars, Loops & Swivels REPORT TO: Committee of the Whole DATE OF MEETING: 2016-06-27 SUBMITTED BY: Michelle Palmer, 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: 2016-06-14 REPORT NO.: FCS-16-105 SUBJECT: T16-036 Natural Gas Pressure Regulators, Meter Bars, Loops & Swivels ___________________________________________________________________________ RECOMMENDATION: That Tender T16-036 Natural Gas Pressure Regulators, Meter Bars, Loops & Swivels, be split and awarded as follows: to C.R. Wall & Co. Inc., Cambridge, Ontario, at their corrected price of $11,560.46, plus H.S.T. of $1,502.86, for a total of $13,063.32, and to KTI Limited, Aurora, Ontario, at their tendered price of $221,829.39, plus H.S.T. of $28,837.82, for a total of $250,667.21, each for a one (1) year term, with an option to renew for two (2) additional twelve (12) month terms. BACKGROUND: Natural gas pressure regulators, meter bars, loops, and swivels are ongoing maintenance, repair and operational (MRO) requirements of Kitchener Utilities. The materials are common fittings required to assemble and repair typical residential and small commercial meters sets. The average annual spend over the past four (4) years was $225,511.85, and 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 nine (9) interested parties, and by the closing date of Thursday April 21, 2016, 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. 1.iii. - 1 The following tenders were received: Corrected Bid Price Bid Price C.R. Wall & Co. Inc. Cambridge ON $13,058.97 $13,063.32 KTI Limited Aurora ON $285,610.62 Tender documents were checked for mathematical errors and corrected accordingly. The price for Natural Gas Pressure Regulators, Meter Bars, Loops & Swivels, has increased 8% from the 2011 contract. The low bid for pressure regulators is KTI Limited and the low bid for meter bars, lops & swivels is C.R. Wall & Co Ltd. The split award provides a cost savings of approximately $20,000. annually. The tender was reviewed by L. Jones, 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. FINANCIAL IMPLICATIONS: Funding will be provided from various operating accounts. 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 1.iii. - 2