HomeMy WebLinkAboutFCS-17-070 - Sole Source - Honeywell Electronic Gas Volume Correctors, Pressure Recorders etc
REPORT TO: Committee of the Whole
DATE OF MEETING: 2017-04-24
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: N/A
DATE OF REPORT: 2017-04-12
REPORT NO.: FCS-17-070
SUBJECT: Sole Source – Honeywell Electronic Gas Volume
Correctors, Pressure Recorders and Related Equipment
and Software
___________________________________________________________________________
RECOMMENDATION:
That C.R. Wall Limited, Cambridge, Ontario, be the sole source provider of
Honeywell Electronic Gas Volume Correctors, Pressure Recorders & Related
Equipment & Software, at a cost of $613,750., plus H.S.T. of $79,787.50 for a total
of $693,537.50, for a five (5) year term.
BACKGROUND:
Traditionally the preferred method to obtain the volume measurement of natural gas
consumption for large commercial, industrial and institutional customers is through the
use of a rotary gas meter. This is attributed to gas meters demonstrating a consistent
level of measurement accuracy over long periods of use.
However, depending on the application of the meter, there is a need to correct the
volume measurement of a rotary meter based on pressure, temperature, super
compressibility, or a combination of all three. The current industry standard is to use an
add-on or external electronic gas flow corrector to perform these corrections. The
measured volume through the rotary meter itself is often referred to as the un-corrected
volume. The flow through the electronic gas volume corrector enables the correction or
partial correction of the volume measured and this value is used for billing.
The average annual spend is estimated at $122,750.00 before taxes.
*** 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 number of rotary meters installed in the field during
the term of the contract.
REPORT:
Although there are multiple manufacturers in the market, not all are approved by
Measurement Canada, the regulatory body that governs the use of measurement
devices for the sale of natural gas in Canada. Historically, Honeywell Process Solutions
has been the brand utilized by the City for the electronic flow correctors as it is
considered the industry standard for Utilities within Ontario.
There is a significant investment in existing electronic volume correctors, associated
software, modem and communication equipment, as well as replacement parts. With
any new product line introduced, additional investments will have to be made to
maintain and operate the pre-existing inventory of correctors or the complete
replacement of the existing compliment of electronic volume correctors. There would
also need to be a substantial investment in training (related to the hardware and
software) and there is the potential of confusion and errors with setting programmable
parameters available in the set-up and on-going maintenance of each different
electronic volume corrector brand.
C.R. Wall Limited is the channel partner for Honeywell Process Solutions with exclusive
distribution rights in eastern Canada.
Honeywell Process Solutions offers the widest product offerings for electronic volume
correctors and has been a proven product utilized by the City’s gas utility.
Article 9 -170.9.1 (c) of the Purchasing By-law allows for acquisition by negotiation
where there is a proven need for product standardization which is necessary to ensure
compatibility with existing products, standards, services, systems or strategies.
The pricing for volume correctors, pressure recorders, related equipment and software,
has not changed from the previous year.
This recommendation is supported 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.
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FINANCIAL IMPLICATIONS:
The net cost for this (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 be closed
out to the Gas Capital Reserve.
Electronic Gas Flow Equipment
as at March 14, 2017
Estimated Annual Cost:
Estimated Annual Costs, including HST 138,707.50
less: HST rebate (15,957.50)
Net Cost Being Awarded $ 122,750.00 A
Projected Costs:
Staff Time 250,000.00
Operating Supplies 180,000.00
Contracted Services100,000.00
Gas Meters 250,000.00
Total Estimated Cost for this Work $ 902,750.00 C
Budget for this work:
Existing Balance 492,565.70
Budget 2017 890,000.00
Total Budget for this Work $ 1,382,565.70 B
Estimated Surplus for this Phase of Work (B - C) $ 479,815.70 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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