HomeMy WebLinkAboutFIN-2021-13 - T21-016 Natural Gas and Water Infrastructure Locate Services
REPORT TO: Committee of the Whole
DATE OF MEETING: 2021-03-22
SUBMITTED BY: Ryan Scott, Manager of Procurement, 519-741-2200 ext. 7214
PREPARED BY: Brad Kowaleski, Procurement Specialist, 519-741-2200 ext. 7063
WARD(S) INVOLVED: All Wards
DATE OF REPORT: 2021-03-12
REPORT NO.: FIN-2021-13
SUBJECT: T21-016 Natural Gas and Water Infrastructure Locate Services
RECOMMENDATION:
That Tender T21-016 Natural Gas and Water Infrastructure Locate Services, be
awarded to Canadian Locators Inc., Calgary, Alberta, at their tendered price of
$766,600.00, plus H.S.T. of $99,658.00, for a total of $866,258.00.
REPORT HIGHLIGHTS:
The purpose of this report is to obtain approval to proceed with an award as per
Purchasing By-law 2017-106;
The reason this report is coming forward is that the value of the bid being recommended
for award is in excess of the Council approved budget;
There were three (3) tenders received for this procurement;
This report supports the delivery of core services.
BACKGROUND:
The City owns and maintains gas and water infrastructure within the City of Kitchener
boundaries and the Gas & Water 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 nearly
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 days, provided that
the excavation is reasonably expected to start within 30 days. Under the act the failure of a
member to provide a 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 information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Late in 2020, two full-time locator positions were approved by council to take on a portion
of this work and these positions are anticipated to come on board in March 2021.
This tender is based on fixed unit prices on estimated quantities representative of natural
gas and water infrastructure locate services over the previous year. The quantities included
with the tender were not reflective of the anticipated changes with internal staff taking on a
portion of this work.
The average annual spend over the past three (3) years was $602,319 before taxes.
The estimated spend through this contract is anticipated to be less than the actual budget
amount and actual spend will depend on the level of activity throughout the term of the
contract.
REPORT:
As per clause 170.7.3 of the Purchasing By-law 2017-
Procurement Value, the Manager of Procurement shall submit a report to Council
recommending award of a purchase greater than $100,000 if any one or more of the
following conditions apply:
a. the value of the Bid being recommended for award including any
contingency allowance are in excess of the Council approved budget;
Tenders were advertised publicly on the City of Kitchener website. Documents were
downloaded by nine (9) interested parties and by closing date of Wednesday February 10,
2021, three (3) tenders had been received.
The following tenders were received:
Bid Price
Mark It Locators Inc. Stoney Creek, ON $421,264.00
Canadian Locators Inc. Calgary, AB $866,258.00 *
G-Tel Engineering London, ON $1,011,208.75
Mark It Locators Inc failed to comply with the requirements of the tender and their bid was
deemed non-compliant.
The tender was reviewed by M. Ryan, Manager of Training and Programs, Infrastructure
Services Department, who concurs with the above recommendation.
FINANCIAL IMPLICATIONS:
The net cost for this tender (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. As noted earlier in the report, the
estimated deficit (D) will likely be much smaller given the addition of two locator positions
late in 2020, but should a deficit materialize, it will remain within the operating accounts and
be funded by the appropriate stabilization reserve fund.
T21-016
Natural Gas and Water Infrastructure Locates
Total
Estimated Cost
T21-016 costs, including HST 866,258.00
less: HST rebate on
tender (92,911.92)
Net Cost Being Awarded 773,346.08 A
One call locating 15,000.00
Estimated Cost 788,346.08 C
Budget
Contracted Services - Gas 255,334.14
Contracted Services - Water 272,835.14
Total budget 528,169.28 B
Estimated Surplus/(Deficit) (B - C) (260,176.80) D
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department