HomeMy WebLinkAboutFIN-19-036 - T19-058 Polyethylene Pipe for Natural Gas DistributionREPORT TO:Committee of the Whole
DATE OF MEETING:2019-04-29
SUBMITTED BY:Margaret Fisher, Director of Procurement, 519-741-2200 ext. 7214
PREPARED BY:Alex Albrecht,Procurement Specialist,519-741-2200 ext. 7216
WARD (S) INVOLVED:N/A
DATE OF REPORT:2019-04-16
REPORT NO.:FIN-19-036
SUBJECT:T19-058 Polyethylene Pipe for Natural Gas Distribution
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RECOMMENDATION:
That Tender T19-058 Polyethylene Pipe for Natural Gas Distribution, be awarded to
C.R.Wall & Co Inc.,Cambridge, Ontario,at their tendered price of $331,020., plus H.S.T.
of $43,032.60, for a total of $374,052.60,for a one (1) year term, with an option to renew
for two (2) additional twelve (12) month terms.
BACKGROUND:
The natural gas distribution system in Kitchener services 73,000 customers with safe and
reliable natural gas. Polyethylene pipe is the primary pipe material being installed within the
Kitchener distribution systemand accounts for 60% of the pipe installed within the system of
1,076 km of gas main.
This tender is based on fixed unit prices on an estimated representative of polyethylene pipe
purchased over the previous year.
The annual spend over the past year was$376,700.43, before taxes. The actual spend will
depend on the level of activity throughout the term of the contract.
REPORT:
Tenders were advertised publicly on the City of Kitchenerwebsite. Documents were downloaded
by five(5) interested parties and by the closing date of Monday April 1,2019,three (3) tenders
had been received.
***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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The following tenders were received:
Bid Price
C.R.Wall & Co Inc.CambridgeON$374,052.60*
Sandale Utility ProductsBrantford ON$391,025.20
ISCO-AH McElroyBrantford ON$520,037.30
The price forpolyethylene pipe for has increased less than 1%from the 2018 contractpricing.
The tender was reviewed by L.Jones,Utilities Engineer, who concurs with the above
recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
the delivery of core service.
FINANCIAL IMPLICATIONS:
The net cost for this tender (A), is fair and reasonable for a project of this scope and the upset
limit is within the funding available (B) for this project. Funding for this project is included within
the approved capital budget. The estimated surplus (D) will remain in the account to fund
similar work conducted by the City. Yearly budgeting for this program is static, however the
work performed fluctuates depending upon growth and redevelopment projects that are
outside of City control.
T19-058
Polyethylene Pipe for Natural Gas Distribution
Estimated Cost
T19-058 costs, including HST374,052.60
less: HST rebate on tender(43,032.60)
Net Cost Being Awarded331,020.00 A
Costs Incurred to Date
Projected Costs (consulting fees for transition)
Estimated Cost$ 331,020.00 C
Budget
Capital Budget: Gas Pipelines512,329.79
Total budget$ 512,329.79 B
Estimated Surplus/(Deficit) (B -C)181,309.79 D
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COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department
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