HomeMy WebLinkAboutFCS-16-113 - T16-068 Manhole RepairsStaff Report
Finance and C'or *ate Serilites
REPORT TO: Jeff Willrner, Chief Administrative Officer
DATE OF MEETING: 2016 -07 -27
SUBMITTED BY: Michelle Palmer, Director of Supply Services
619- 741 -2200 ext. 7214
PREPARED Y: Adam Buchhol, Buyer, 519- 741 -2200 ext. 7217
WARD(S) INVOLVED: All
REPORT NO.: 'FCS -16 -113
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SUBJECT: T16 -066 Manhole Repairsyti
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RECOMMENDATION:
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That Tender T16 -066 Manhole Repairs, be awarded to JE Construction
Management Corporation, Brantford, Ontario, at their adjusted tendered price of
$495,350., plus H.S.T. of $63,095.50, for a total of $543,445.50, for a one (1) year
term, with an option to renew for two (2) additional twelve (12) month terms.
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The State of the Infrastructure report (INS 15 -075) identified that more maintenance and
operational activities are required due to aging infrastructure. One of the maintenance
items requiring more attention is sewer manhole repairs. Over time, manhole
infrastructure deteriorates due. to changes in weather (e.g. freeze /thaw cycle) and the
weight of vehicles travelling over the manholes. This causes collapses in the manhole
infrastructure, which can lead to deterioration in pavement quality due to sinkholes as
well as groundwater infiltrating into the sewer network.
Operations currently does not have the internal resources available to complete the
volume of work required in 2016 and is seeking an external contractor to complete the
work in a timely manner. Operations will review this contract at the end of the one (1)
year term to determine if manhole repairs could be completed internally in future years
or if the renewal options will be exercised with the awarded contractor.
This information is available in accessible formats upon request. * **
Please call 519- 741 -2345 or TTY 1 -866- 969 -9994 for assistance.
This tender is based on fixed unit prices on an estimated number of manhole repairs to
be completed. The actual spend will depend on the number of manhole repairs
completed 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 fourteen (14) interested parties, and by the closing date of
Thursday June 23, 2016, four (4) tenders had been received.
The following tenders were received:
Adjusted
Bid Price Bid Price
JB Construction
Management Corporation Brantford ON $ 706,928.00 $548,445.50*
Hardscape Concrete & Interlock Cambridge ON $ 738,568.00 $573,475.00
Falcon Road Services Inc. Grimsby ON $ 746,930.00 $580,255.00
J. Weber Contracting Ltd. Breslau ON $1,005,507.90 $779,801.70
The tender was originally for work on 4.00 manholes, however all bids came in higher
than budget, so the number of manhole repairs was reduced from 400 to 310 and all
tendered prices were adjusted accordingly.
This contract is for a newly outsourced requirement, so there is no comparable
information from previous tender rates.
The tender was reviewed by C. Heise, Interim Manager Maintenance Operations, C.
Cook, Supervisor Roads and A. Buchholtz, 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:
The net cost for this proposal (A), is fair and reasonable for a purchase of this scope. A
reduction in units will keep the upset limit 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 in the account to fund other professional
Services.
Financial Summary for Tender T16 -068
Manhole Repairs
Total
Estimated Cost
Tender T16 -068 costs, including HST $ 548,445.50
less: HST rebate on tender $ (54,533.31}
Net Cost Being Awarded $ 493,892.19 A
Estimated Cost IA93 .892.19 C
Budget
Manhole Casting Repairs 500,000-00
Total budget $ 500,000.00 B
Estimated Surplus (B - C) $ 6,107.81 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