HomeMy WebLinkAboutFCS-17-042 - T17-023 Gas Pipeline Construction
REPORT TO: Committee of the Whole
DATE OF MEETING: 2017-02-27
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: 2017-02-17
REPORT NO.: FCS-17-042
SUBJECT: T17-023 Gas Pipeline Construction
___________________________________________________________________________
RECOMMENDATION:
That Tender T17-023 Gas Pipeline Construction be awarded to NPL Canada
Limited, Vaughan, Ontario, at their corrected tendered price of $6,914,087.32,
including planned work of $5,675,574.72, provisional work of $53,581.36, labour
contingency of $131,411.34, equipment contingency of $108,093.93, and
subcontractor contingency of $150,000., plus H.S.T of $795,425.97, for a total of
$6,914,087.32, for the first year of a three (3) year contract, with the option to
renew for two (2) additional one (1) year periods.
BACKGROUND:
The Gas Pipeline Construction Contract addresses the need to replace existing piping
in locations that conflict with underground infrastructure proposed by others, and to
replace aging and failing existing piping. In addition, this contract addresses the need
to install underground gas mains and services to service new customers, to the extent
that internal resources are insufficient to meet the required workload. This work is
needed to ensure City homeowners and business owners all have equal and safe
access to natural gas, if they require it. It is the intention of Utilities for the Contractor to
maintain the roles and responsibilities as the Constructor for the various gas pipeline
installation projects for the life of this 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 in the Daily Commercial News, on the City of
Kitchener website and the internet through the Ontario Public Buyers Electronic
Tendering Information System. Documents were picked up by seven (7) interested
parties and by the closing date of Thursday February 2, 2017, four (4) tenders had been
received.
The tenders were reviewed by S. Eastman, Utilities Engineer, M. Palmer, Director of
Supply Services, and S. Rudak, Buyer, who concur with the above recommendation.
The following tenders were received: Bid Price Adjusted Price
NPL Canada Ltd. Vaughan ON $6,946,409.36 $6,914,087.32 *
Clearway Utilities Inc. Concord ON $6,872,802.86 $6,872,798.87
Aecon Utilities Toronto ON $7,671,257.72 $7,671,256.39
Powerline Plus Ltd. Scarborough ON $7,986,082.63 $8,003,925.28
Tender prices were verified for mathematical accuracy and adjusted accordingly.
The price for gas pipeline construction has decreased 1.4% from the 2016 contract.
The prices shown reflect the anticipated spend for year one (1), of the initial three (3)
year contract. Anticipated spend in following years is dependent upon the construction
schedule developed by Utilities.
Annual unit price adjustments shall be automatic, based on the annual inflation figure of
the Ontario Consumer Price Index from the preceding year and renewal subject to
mutual agreement.
The low bid received from Clearway Utilities Inc., is disqualified due to not
demonstrating required experience with the majority of the scope of work related to gas
pipeline installation and after meter pipeline work, steel pipe welding and plastic pipe
fusing. In addition, a list of qualified, licensed natural gas fitters \[as designated under
O.Reg. 215/01,s.20 (1)\] was not provided in their submission.
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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The net cost for this tender (A), is fair and reasonable for a project of this scope
and the upset limit is within the funding available (B) for this project. Funding for
this project is included within the approved capital budget. The estimated surplus
(D) will remain in the account to fund similar work conducted by the City. Yearly
budgeting for this program is static; however the work performed fluctuates
depending upon growth and redevelopment projects that are outside of City
control.
T17-023
Gas Pipelines
as at February 15, 2017
Estimated Cost
Tender T17-023 costs, including HST 6,914,087.32
less: HST rebate (795,425.97)
Net Cost Being Awarded 6,118,661.35 A
Projected Costs: (3years)
Staff Time 431,000.00
Excavating 1,069,000.00
Welding 120,000.00
Total Estimated Cost for this Phase of Work $ 7,738,661.35 C
Funding Available
Existing Balance 3,988,798.37
Budget 2017 5,706,000.00
Total Budget for this Phase of Work $ 9,694,798.37 B
Estimated Surplus for this Phase of Work (B - C) 1,956,137.02 D
Estimated Surplus from previous phases -
Total Estimated Surplus $ 1,956,137.02 E
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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