HomeMy WebLinkAboutFIN-19-019 - T19-008 Natural Gas and Water Infrastructure Locate ServicesREPORT TO:Committee of the Whole
DATE OF MEETING:2019-03-04
SUBMITTED BY:Margaret Fisher, Director of Procurement, 519-741-2200 ext. 7214
PREPARED BY:Alex Albrecht,Buyer,519-741-2200 ext. 7216
WARD (S) INVOLVED:N/A
DATE OF REPORT:2019-02-19
REPORT NO.:FIN-19-019
SUBJECT:T19-008Natural Gas and Water Infrastructure Locate Services
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RECOMMENDATION:
That Tender T19-008 Natural Gas and Water Infrastructure Locate Services, be awarded
toCanadian Locators Inc.,Markham, Ontario, at their tendered price of $409,290.plus
H.S.T. of $53,207.70, for a total of $462,497.70for a one (1) year term, with an option to
renew for two(2) additional twelve (12) month terms.
BACKGROUND:
The City owns and maintains gas and water infrastructure within the City boundaries and the
Utilities Division is required to provide locate services for the infrastructure. An increased volume
of infrastructure locate requests occur in the spring when contractors commence work on
projects as well as in the fall when contractors are completing work prior to winter. However,
the volume of locate requests have doubled over the past 10 years and we now rely to some
extent throughout the entire year on a contract locate service provider to help provide this
service.
The Ontario Underground Infrastructure Notification System Act requires members to make all
reasonable attempts to respond to a notification within five business daysprovided that the
excavation is reasonably expected to start within 30 days. The failure of a member to providea
locate within the timeframes established in the Act, or failure to state in writing that the
infrastructure will not be affected by an excavation,may be fined.
This tender is based on fixed unit prices on an estimated representative of natural gas and water
infrastructure locate services provided overthe previous year.
The average annual spend over the past three (3) years was $673,010.26, before taxes.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 1-866-969-9994for assistance.
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REPORT:
Tenders were advertised publicly on the City of Kitchenerwebsite. Documents were downloaded
byseven(7) interested parties and by the closing date of MondayFebruary 11, 2019,three(3)
tenders had been received.
The following tenders were received:
Bid Price
Canadian Locators Inc.Markham ON$462,497.70*
Mark It LocatesStoney Creek ON$520,325.45
multiVIEW Locates Inc. Mississauga ON$1,042,752.70
The price for natural gas and water infrastructure locate serviceshas decreased 41% from the
2018-2019contract.
The tender was reviewed by M. Ryan,Supervisor of Loss Prevention & Maintenance who concurs
with the above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
the delivery of core service.
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FINANCIAL IMPLICATIONS:
The net cost for this proposal (A), is fair and reasonable for a purchase of this scope and the
upset limit is within the budget allowance (B) provided within the budget. Funding for this project
is included within the approved operating budget. The estimated surplus (D) willremain within
the account.
T19-008
Natural Gas and Water Infrastructure Locate Services
Total
Estimated Cost
T19-008 costs, including HST462,497.70
less: HST rebate on tender(49,605.95)
Net Cost Being Awarded412,891.75 A
One call locating15,000.00
Estimated Cost$ 427,891.75 C
Budget
Contracted Services -Gas252,500.00
Contracted Services -Water337,600.00
Total budget$ 590,100.00 B
Estimated Surplus/(Deficit) (B -C)162,208.25 D
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
Not Applicable
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department
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