HomeMy WebLinkAboutFIN-20-040 - P20-059 Waterworks Repair ServiceREPORT TO:Committee of the Whole
DATE OF MEETING:2020-05-11
SUBMITTED BY:Ryan Scott,Manager of Procurement, 519-741-2200 ext. 7214
PREPARED BY:Adam Buchholtz, Associate Procurement Specialist,519-741-2200 ext.
7217
WARD (S) INVOLVED:N/A
DATE OF REPORT:2020-04-29
REPORT NO.:FIN-20-040
SUBJECT:P20-059Waterworks Repair Service
__________________________________________________________________________________________
RECOMMENDATION:
ThatProposal P20-059 Waterworks Repair Servicebe awarded to Navacon Construction
Inc.,Brantford, Ontario, at their proposed priceof $327,600., plus H.S.T. of $42,588., for a
total of $370,188.,for a one (1) year term, with an option to renew for four(4) additional
twelve (12) month terms.
BACKGROUND:
Why this is critical to proceedahead:Contracted services required to support proper
The City operates and maintains over 800 km of watermain, 7,100 water valves and 4,300
hydrants. Aging infrastructure causes watermain and valve failures to occur frequently over the
winter months. Frost moving deep into and leaving the ground causes pipes to shift and already
weak/aging pipes and valves will fail. The 5-year average is 110 failures per year, with the
majority occurring over the winter months. In addition,there are 2,500 valves that are past their
life expectancy of forty (40)years and these valves need to be proactively replaced under non-
emergency conditions.
Availability of safe drinking water is a necessity, which is often taken for granted until it is
unavailable. Kitchener Utilities strives to restore safe drinking water as soon as possible to
affected residents. This means completing watermain/valve repairs in a timely fashion. This
work is typically completed by Kitchener Utilities staff, but additional resources in the form of
contracted services are often required.
These contingency resources are required to:
ensure maintenance programs are completed,
ensure staff are not working excessive hours,and
***This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994for assistance.
14.f. - 1
service policy.
The average annual spend over the past two (2) years was $440,017.05, before taxes. The
actual spend will depend on the level of activity throughout the term of the contract.
REPORT:
Proposalswere advertised publicly on the City of Kitchenerwebsite. Documents were
downloaded by six(6) interested parties and by the closing date of Friday March 27,2020,three
(3)proposalshad been received.
The following proposalswere received:
J.Weber Contracting LimitedBreslau ON
Navacon Construction Inc.Brantford ON
Network Sewer and Watermain Ltd.Cambridge ON
The proposals were rated on the following criteria:
Labour rates
Equipment and materials
Company capacity
Response times
The proposal was based on fixed hourly evening rates on an estimated representative sampling
of 60watermain repairs per year.
The price for waterworks repair serviceshas decreased 3.2% from the 2019 contract.
The proposals were reviewed by T. Gaber, Manager of Operations, M. Ryan, ManagerLoss
Prevention and Maintenance and A. Buchholtz, Associate Procurement Specialist, who concur
with the above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
egic vision through
the delivery of core service.
14.f. - 2
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.
P20-059 Waterworks Repair Services
Estimated Cost
Proposal P20-059 costs, including HST370,188.00
less: HST rebate(36,822.24)
Net Cost Being Awarded333,365.76 A
Total Estimated Cost for this Phase of Work333,365.76 C
Funding Available
Valve Replacement375,000.00
Total Budget for this Phase of Work375,000.00B
Estimated Surplus/(Deficit) for this Phase of Work (B -C)41,634.24D
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department
14.f. - 3