HomeMy WebLinkAboutFIN-19-054 - T19-102 Natural Gas Pressure Regulators, Meter Bars and Related MaterialsREPORT TO:Committee of the Whole
DATE OF MEETING:2019-06-24
SUBMITTED BY:Margaret Fisher, Director of Procurement, 519-741-2200 ext. 7214
PREPARED BY:Alex Albrecht,Associate Procurement Specialist519-741-2200 ext.7216
WARD (S) INVOLVED:N/A
DATE OF REPORT:2019-06-05
REPORT NO.:FIN-19-054
SUBJECT:T19-102Natural Gas Pressure Regulators, Meter Bars and Related
Materials
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RECOMMENDATION:
That Tender T19-102 Natural GasPressure Regulators, Meter Bars and Related Materials,
be awardedas follows:
Tender items 1,2,3,4,5,11,12and 13to KTI Limited,Aurora,Ontario, at their tendered
price of $683,994.57,plus H.S.T. of $88,919.29,for a total of $772,913.86; and,
Tender items 6,7,8,9and 10 to C.R.Wall & Company Incorporated,Cambridge,Ontario,
at their tendered price of $279,290. plus H.S.T. of $36,307.70,for a total of $315,597.70,
for a one (1) year term.
BACKGROUND:
Natural gas pressure regulators, meter bars, and related materials arefor ongoing maintenance,
repair and operational (MRO) requirementsof Kitchener Utilities.The materials are common
fittings required to assemble and repair typical residential and small commercial meters sets.
This tender is based on fixed unit prices, based on an estimated amount ofnatural gas pressure
regulators, meter bars and related materialsrequired over the next year.
The average annual spend over the past three(3) years was $419,527.44, before taxes. Due
to life cycle, in 2019,there will be approximately15,000 metersetsthat are at the end of their
seal lifecycle. Approximately,6,000 meter sets will be sampled to see if the seal lifecan be
extendedand the other 9,000will need to be removed and replaced. The actual spend will
depend on the level of activity throughout the term of the contract.
***This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994for assistance.
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REPORT:
Tenders were advertised publicly on the City of Kitchenerwebsite. Documents were downloaded
by four(4) interested parties and by the closing date of WednesdayJune 12, 2019,three(3)
tenders had been received.
The following tenders were received:
Bid PriceAward Price(incl. HST)
C.R.Wall & CompanyCambridge ON$ 372,302.63$315,597.70*
Lakeside Process ControlsMississauga ON$1,191,754.50
KTI LimitedAurora ON$1,256,032.37$772,913.86*
The tender award is being split between two (2) companies, to the lowest price per line item
complete to specifications.
The price for natural gaspressure regulators, meter bars and related materialshas decreased
lessthan a percentfrom the 2018contract.
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.
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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 budgets. The estimated surplus (D) will remain within the account
to fund future purchases.
T19-102
Natural Gas Pressure Regulators, Meter Bars and Related Materials
Estimated Cost for this project
Tender T19-102 costs, including HST $ 1,088,511.56
less: HST rebate (125,226.99)
Net Cost Being Awarded 963,284.57 A
Projected Costs -
Total Estimated Cost $ 963,284.57 C
Budget for this project
Gas Meter Budget 1,000,000.00
Total Budget for this purchase $ 1,000,000.00 B
Estimated Surplus/(Deficit) for this Phase of Work (B -C) $ 36,715.43 D
COMMUNITY ENGAGEMENT:
INFORM advance of the
council / committee meeting.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department
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