HomeMy WebLinkAboutFIN-20-071 - T20-121 Natural Gas Pressure Regulators and Related MaterialsREPORT TO:Committee of the Whole
DATE OF MEETING:2020-11-23
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:2020-11-10
REPORT NO.:FIN-20-071
SUBJECT:T20-121Natural Gas Pressure Regulatorsand Related Materials
__________________________________________________________________________________________
RECOMMENDATION:
That Tender T20-121 Natural Gas Pressure Regulators and Related Materials, be awarded
as follows;
Tender Items 1, 2, 3, 4, 7, 8, and 9 be awarded to C.R. Wall & Co. Ltd., Cambridge,Ontario,
at their tendered price of $294,402.00, plus H.S.T. of $38,272.26, for a total of $332,674.26,
for a one (1) year term, with an option torenew for two(2) additional twelve (12) month
terms.
AND
Tender Items 5, 6, 11, and 12be awarded to Tecvalco Ltd. Niagara Falls, Ontario, at their
tendered price of $76,467.20,plus H.S.T. of $9,940.74, for a total of $86,407.94,for a one
(1)year term, with an option to renew for two(2) additional twelve (12) month terms.
BACKGROUND:
Natural gas pressure regulatorsand related materials are for ongoing maintenance, repair and
operational (MRO) requirements of Kitchener Utilities. The materials are common fittings
required to assemble, repair and replace typical residential and small commercial meters sets.
This tender is based on fixed unit prices, based on an estimated amount of natural gas pressure
regulators and related materials required over the next year.
The annual spend over the past year was $367,310.26, before taxes. Due to life cycle, in
2020/2021, there will be approximately 15,000 meter sets that are at the end of their seal life
cycle. Approximately 6,000 meter sets will be sampled to see if the seal life can be extended
and the other 9,000 will 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 520-741-2345 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 six(6) interested parties and by the closing date of Wednesday August 5,2020,five(5)
tenders had been received.
The following tenders were received:
Bid PriceAward Price
KTI Limited (Bid #1)Aurora ON$612,525.54
KTI Limited (Bid #2)Aurora ON$729,813.89
Tecvalco Ltd.Niagara Falls ON$767,998.93$86,407.94 *
Lakeside Process ControlsMississauga ON$784,124.45
C.R. Wall & Co. Ltd.Cambridge ON $839,015.96$332,674.26 *
The price for natural gas pressure regulators and related itemshas increased 0.1% from the
2019contract.
Tender items were awarded to the lowest compliant unit prices for each category.
The tender was reviewed by P. Pavlinich,Manager, Gas Measurement and Service, who
concurs with the above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
vision through
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.
T20-121
Natural Gas Pressure Regulators and Related Materials
Estimated Cost for this project
Tender T20-121costs, including HST $ 419,082.20
less: HST rebate (48,213.00)
Net Cost Being Awarded 370,869.20 A
Projected Costs -
Total Estimated Cost $ 370,869.20 C
Budget for this project
2021 Budget Allocation from Gas Meters 450,000.00
Total Budget for this purchase $ 450,000.00 B
Estimated Surplus/(Deficit) for this Phase of Work (B -C) $ 79,130.80 D
COMMUNITY ENGAGEMENT:
INFORM This report has been
council / committee meeting.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department
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