HomeMy WebLinkAboutFCS-16-179 - T16-089 Sewage Pumping Station - Pump and Motor Control Maintenance and Repair
REPORT TO: Committee of the Whole
DATE OF MEETING: 2016-11-21
SUBMITTED BY: Michelle Palmer, Director of Supply Services
519-741-2200 ext. 7214
PREPARED BY: Adam Buchholtz, Buyer, 519-741-2200 ext. 7217
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2016-11-07
REPORT NO.: FCS-16-179
SUBJECT: T16-089 Sewage Pumping Stations – Pump and Motor
Control Maintenance and Repair
___________________________________________________________________________
RECOMMENDATION:
That Tender T16-089 Sewage Pumping Stations – Pump and Motor Control
Maintenance and Repair, be awarded to Prestige Energy Services, 339194 Ontario
Inc., Stratford, Ontario, at their tendered price of $116,000., plus H.S.T. of
$15,080., for a total of $131,080., for a one (1) year term, with an option to renew
for two (2) additional twelve (12) month terms.
BACKGROUND:
The City requires the services of a specialized contractor to perform electrical
maintenance as well as to respond to sanitary pumping station electrical issues/alarms
on an ‘on-call’ basis. The City does not have the staff resources or specialized
knowledge required to diagnose and repair the pumping station motor and system
controls, including SCADA (supervisory control and data acquisition) components.
This tender is based on fixed unit prices on an estimated representative sampling of
components and labour used over the last year.
The average annual spend over the past two (2) years was $85,628.86, before taxes,
with labour accounting for 30% and parts accounting for 70% over the previous two
years.
The actual spend will depend on the level of repairs and the amount of maintenance
activity required throughout the term of the contract.
*** 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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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 seven (7) interested parties and by the closing date of Thursday
October 27, 2016, one (1) tender had been received.
The following tenders were received:
Bid Price
Prestige Energy Services, 339194 Ontario Ltd. Stratford ON $131,080.00*
The price for labour has increased 100% and the price for parts has increased 13.6%
from the 2015 contract. Based on past trends regarding parts and labour, the increase
from the previous contract is estimated to be 39.5%.
Pricing increases can be attributed to the specialized nature of the services required
from the contractor, as well as, the retirement of the incumbent contractor, who had kept
the rates below market value over the past 10 years. Historically, the other bids
received for this service are consistent with the pricing received for this bid opportunity.
The existing pump and controllers limit competition due to a limited number of skilled
electricians familiar with maintenance and repair on this type of equipment. The
Operations division is currently undertaking a review of the equipment with the intent to
standardize on a product which will increase the level of competition for the repair and
maintenance work.
The tender was reviewed by C. Maguire, Supervisor Operations - Sewers, C. Banks,
Supervisor Operations – Sewers, B. Dubrick, Supervisor Operations – Sewers 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:
Funding will be provided from various operating and capital accounts.
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
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PREVIOUS CONSIDERATION OF THIS MATTER:
Not applicable
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
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