HomeMy WebLinkAboutFCS-17-202 - Q17-094 Domestic Natural Gas Meter Set-New Build Installation and Inspection Services
REPORT TO: Committee of the Whole
DATE OF MEETING: 2017-12-11
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: 2017-12-01
REPORT NO.: FCS-17-202
SUBJECT: Q17-094 Domestic Natural Gas Meter Set: New Build
Installation and Inspection Services
___________________________________________________________________________
RECOMMENDATION:
That Quotation Q17-094 Domestic Natural Gas Meter Set: New Build Installation
and Inspection Services, be awarded to Lakeside Gas Services Ltd., Mississauga,
Ontario, at their quoted price of $119,734., plus H.S.T. of $15,565.42, for a total of
$135,299.42., for a one (1) year term.
BACKGROUND:
Kitchener Utilities is a regulated utility with an annual increase of 1,600 services to its
customer base. Approximately 59% of the annual new gas meter services are installed
over a three (3) month period, which places a capacity burden on staff.
The outsourcing of a portion of new build installation and inspection of gas meter sets
work to a qualified contractor when utility resources are not available to perform the
work will ensure the utility continues to meet the needs of Gaseous Code B149-15,
including builders requirements and their schedules. Outsourcing will also provide a
consistent approach to inspections, ensuring the desired level of public safety is
provided at the right time.
This quotation is based on fixed unit prices on an estimated quantity of inspections over
the next one (1) year previous year.
There is no previous data of annual spend for this requirement. The actual spend will
depend on the level of activity 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:
This report is being brought forward for Council approval in accordance with the new
Purchasing Bylaw clause 170.7.3 - “Regardless of Procurement Value, the Director of
Supply Services shall submit a report to Council recommending award of a purchase
greater than $100,000 if any one or more of the following conditions apply: d) only one
Bid was received in response to a Solicitation”
The Quotation was advertised publicly on the City of Kitchener website and the Internet
through the Ontario Public Buyers Electronic Tendering Information System. Documents
were downloaded by four (4) interested parties and by the closing date of Friday
October 27, 2017, one (1) quotation had been received.
The following quote was received: Bid Price
Lakeside Gas Services Ltd. Mississauga, Ontario $135,299.42
The quote was reviewed by B. Nash, Manager of Customer Relations, who concurs 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 Quote (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 budgets. The estimated surplus (D) will remain
within the account to fund future purchases.
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Q17-094
Domestic Natural Gas Meter Set: New Build Installation and Inspection Services
Estimated Cost for this project
Quote Q17-094 costs, including HST 135,299.42
less: HST rebate 15,565.42
Net Cost Being Awarded 119,734.00 A
Projected Costs -
Total Estimated Cost$119,734.00 C
Budget for this project
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125,000.00 B
Total Budget $125,000.00
Estimated Surplus/(Deficit) for this Phase of Work (B - C) 5,266.00 D
Estimated Surplus/(Deficit) from previous phases
Total Estimated Surplus/(Deficit) $5,266.00 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: Lesley MacDonald, Acting Deputy CAO, Finance and
Corporate Services
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