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HomeMy WebLinkAboutFIN-2021-23 - T21-003 Becker Street Reconstruction Staff Report Financial Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: 2021-04-26 SUBMITTED BY: Ryan Scott, Manager of Procurement, 519-741-2200 ext. 7214 PREPARED BY: Polina Semenov, Procurement Specialist, 519-741-2200 ext. 7037 WARD(S) INVOLVED: Ward 1 DATE OF REPORT: 2021-04-14 REPORT NO.: FIN-2021-23 SUBJECT: T21-003 Becker Street (Fife Avenue to Krug Street) Reconstruction RECOMMENDATION: That Tender T21-003 Becker Street (Fife Avenue to Krug Street) Reconstruction, be awarded to Nabolsy Contracting Inc., Mississauga, Ontario, at their tendered price of $1,899,925.95, including provisional items and contingencies of $222,723.00, plus H.S.T. of $246,990.37, for a total of $2,146,916.32. REPORT HIGHLIGHTS:  The purpose of this report is to obtain approval to proceed with an award as per Purchasing By-law 2017-106;  There were seven (7) tenders received for this procurement;  This report supports the delivery of core services. BACKGROUND: Engineering Services is proceeding with the reconstruction of Becker Street from Fife Avenue to Krug Street. The properties along Becker Street is mix of single and multi – residential dwellings. The total length of the underground work is approximately 490m. The services were originally constructed in the 1950’s and are in need of replacement. This work is being completed under the City’s Water Infrastructure Program (WIP) for road reconstructions. The project is scheduled to begin May 10, 2021, weather permitting. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. REPORT: Tenders were advertised publicly on the City of Kitchener website. Documents were downloaded by thirty-five (35) interested parties and by the closing date of Tuesday April 6, 2021, seven (7) tenders had been received. The following tenders were received: Bid Price Nabolsy Contracting Inc. Mississauga ON $2,146,916.32 * Network Sewer and Watermain Ltd Cambridge ON $2,242,413.59 Oxford Civil Group Inc. Woodstock ON $2,515,118.11 Steed and Evans Limited St. Jacobs ON $2,566,569.01 Morley's Contracting (Brantford) Ltd. Paris ON $2,632,812.78 Navacon Construction Inc. Brantford ON $2,641,205.28 410754 Ontario Limited o/a Sousa Concrete Cambridge ON $2,677,134.98 The tenders were reviewed by S. Collie, AECOM, the City’s consultant for this project and S. Shah, Design Engineer, who concur with the above recommendation. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: In addition to the costs anticipated in this tender, the design and implementation of these types of projects typically involves city staff and resources from across the corporation. These costs are included in the line item "Projected Costs: Staff Time/Permitting/Material testing", and will be itemized when they exceed $125,000. Included in this line item are staff time and expenses for all city staff in support of the project such as Engineering, Kitchener Utilities, and Transportation Planning. The line item also includes all regulatory permitting, geotechnical and material testing, detouring and traffic control, alternate access and parking requirements and any other miscellaneous costs. Projects utilizing in-house staff will include costs for inspection during construction and contract administration. 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 purchase is included within the approved capital forecast. The estimated surplus (E) will be returned to the WIP Road Reconstruction general account, and will be used to fund unexpected deficits in WIP Road Reconstruction projects. Tender T21-003 Becker Street (Fife to Krug) Reconstruction The total budget for all phases of this project is $ 3,119,000.00 Estimated Cost for this Phase of Work Tender T21-003 costs, including HST $ 2,146,916.32 less: HST rebate on proposal (213,551.58) Net Cost Being Awarded 1,933,364.74 A Projected Costs: Staff Time/Material Testing 38,683.15 Total Estimated Cost for this Phase of Work $ 1,972,047.89 C Budget for this Phase of Work WIP - Road Reconstruction - Sanitary Utility 1,245,000.00 WIP - Road Reconstruction - Stormwater Utility 623,000.00 WIP - Road Reconstruction - Water Utility 839,000.00 External Cost Recovery $ 2,707,000.00 B Estimated Surplus/(Deficit) for this Phase of Work (B - C) 734,952.11 D Estimated Surplus/(Deficit) from previous phases 67,299.55 Total Estimated Surplus/(Deficit) $ 802,251.66 E COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department