HomeMy WebLinkAboutFIN-2021-34 - T21-060 Pattandon Avenue (Borden Parkway to Ottawa Street South) Reconstruction
Staff Report
Financial Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: 2021-05-17
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 9
DATE OF REPORT: 2021-05-11
REPORT NO.: FIN-2021-34
SUBJECT: T21-060 Pattandon Avenue (Borden Parkway to Ottawa Street
South) Reconstruction
RECOMMENDATION:
That Tender T21-060 - Pattandon Avenue (Borden Parkway to Ottawa Street South)
Reconstruction , be awarded to 410754 Ontario Limited o/a Sousa Concrete,
Cambridge, Ontario, at their tendered price of $2,148,513.50, including provisional
items and contingencies of $137,450.00, plus H.S.T. of $279,306.76, for a total of
$2,427,820.26.
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 five (5) tenders received for this procurement;
This report supports the delivery of core services.
BACKGROUND:
Engineering Services is proceeding with the reconstruction of Pattandon Avenue (from
Borden Parkway to Ottawa Street South) approximately 385 m. The services were originally
constructed in the 1950’s and are in need of replacement.
The administration, design and tendering of this project has been completed by IBI Group
staff, the construction administration and inspection of this project will be completed by IBI
Group staff as well.
This work is being completed under the City’s Water Infrastructure Program (WIP) for road
reconstructions.
The project is scheduled to begin June 28, 2021 weather permitting.
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REPORT:
As per clause 170.7.1 of the Purchasing By-law 2017-106, the Manager of Procurement
shall submit a report to Council recommending award of a purchase greater than $750,000.
Tenders were advertised publicly on the City of Kitchener website. Documents were
downloaded by twenty-nine (29) interested parties and by the closing date of Wednesday
May 5, 2021, five (5) tenders had been received.
The following tenders were received:
Bid Price
410754 Ontario Limited o/a Sousa Concrete Cambridge ON $2,427,820.26 *
Network Sewer and Watermain Ltd Cambridge ON $2,567,400.25
Steed and Evans Limited St. Jacobs ON $2,572,445.01
Oxford Civil Group Inc. Woodstock ON $2,897,251.28
Elgin Construction St. Thomas ON $3,347,891.78
The tenders were reviewed Y. Bhattachan, Engineering Project Manager, who concurs 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 T21-060
Pattandon Avenue Reconstruction
The total budget for all phases of this project is $ 2,741,000.00
Estimated Cost for this Phase of Work
Tender T21-060 costs, including HST 2,427,820.26
less: HST rebate on tender (241,492.81)
Net Cost Being Awarded 2,186,327.45 A
Projected Costs: Staff Time/Material Testing 47,693.80
Total Estimated Cost for this Phase of Work $ 2,234,021.25 C
Budget for this Phase of Work
WIP - Road Reconstruction - Sanitary Utility 1,100,000.00
WIP - Road Reconstruction - Stormwater Utility 550,000.00
WIP - Road Reconstruction - Water Utility 742,000.00
Total Budget for this Phase of Work $ 2,392,000.00 B
Estimated Surplus/(Deficit) for this Phase of Work (B - C) 157,978.75 D
Estimated Surplus/(Deficit) from previous phases (11,735.38)
Total Estimated Surplus/(Deficit) $ 146,243.37 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