HomeMy WebLinkAboutFIN-2021-44 - Non-Standard Procurement - SolarWall System at Forest Heights Pool
REPORT TO: Committee of the Whole
DATE OF MEETING: 2021-11-22
SUBMITTED BY: Ryan Scott, Manager, Procurement, 519-741-2200 ext. 7214
PREPARED BY: Chris Oke, Manager, Project Delivery, 519-741-2200 ext. 4225
WARD (S) INVOLVED: N/A
DATE OF REPORT: 2021-09-08
REPORT NO.: FIN-2021-44
SUBJECT: Non-Standard Procurement SolarWall System at Forest Heights Pool
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RECOMMENDATION:
That DBM Perfcon Inc, Toronto, Ontario, be the sole source provider for the turnkey
installation of a SolarWall system at Forest Heights Pool, at a cost of $151,312.20, plus
H.S.T. of $19,670.59, for a total of $170,982.79, provided a satisfactory contract is
executed.
BACKGROUND:
To reduce green house gas emissions and save energy through operating costs a pilot project
to install a SolarWall system at Forest Heights Pool was approved in the 2020 capital budget
through the CorCap sustainability fund. Facilities Management plans to monitor the cost savings
and reduction in green house gas emissions over the course of a year and propose a larger
strategy for strategic facilities within portfolio to meet the emission reduction targets
SolarWall is new technology developed in the United States and recently introduced to
Canada. The system consists -facing
exterior wall, the panels absorb heat from the sun and in turn heat the air space between the
panel and the buildings wall. The heated air is then lation or
HVAC system via a fan, saving on heating costs and reducing the amount of fossil fuels used.
For every 5 square metres (54 sq.ft.) of SolarWall panels installed, about 1 ton of carbon
dioxide emissions is displaced each year.
In winter, buildings consume tremendous amounts of fossil fuel to heat fresh air as it enters the
buildings HVAC system to in turn heat the interior space. The system proposed at the Forest
Heights Pool is a two-stage panel system that is designed to preheat large volumes of fresh air
in the colder months through solar heat gain before entering the buildings HVAC system.
Significantly less fossil fuel is required to heat the solar-heated fresh air to a set point.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
REPORT:
As per clause 170.8.2 of the Purchasing By-law 2017--Standard
Procurement process is only permitted under the following circumstances:
c. where there is an absence of competition for technical reasons and the Goods,
Services, Construction, or Consulting Services can only be supplied by one particular
As per clause 170.8.3 of the Purchasing By-law 2017-106, it states, All non-standard
Procurement processes must be approved and conducted in accordance with this By-law
including the table set out in this section and all applicable procedures.
Requirement Procurement Procurement Approval Authority
Value Process
Excluding Taxes
Goods, Up to $99,999 Non-Competitive or Director of Supply
Services, Construction, Limited Competition Services
Consulting Services
Goods, Greater than Non-Competitive or Council
Services, Construction, $100,000 Limited Competition
Consulting Services
SolarWall, to date, is the only Canadian company proven to deliver an effective product. DBM
Perfcon Inc is a trusted install partner of SolarWall that can provide a turnkey installation of the
product integrated with the existing heating system at the Forest Heights Pool. The original
budget proposed in 2020 was compiled in 2019 without a contingency added and was pre-
pandemic. Due to extreme cost escalations and supply chain constraints the cost of this system
and its components has increased significantly. An additional contingency of 30% has been
added to mitigate risk associated with unforeseen future cost escalations or supply chain issues.
The recommendation was reviewed by Asad Qureshi, Director Facilities Management who
concurs with the above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the
the delivery of core service and the Corporate Climate Action Plan to reduce green house gas
emissions.
FINANCIAL IMPLICATIONS:
The net capital cost for this purchase is fair and reasonable for a purchase of this scope (A),
although the upset limit exceeds the budget allowance (B) provided within the budget. Funding
for this project is included within the approved capital budget. The estimated deficit (C) will be
funded from the CorCap capital account. There are sufficient funds in the account to fund the
deficit.
FIN-2021-44
SolarWall System Turnkey Install - FHP
Estimated Cost for this Component
Quotation FIN-2021-44 costs, including HST
131,525.22
39,457.57
Contingency added 30%
less: HST rebate (17,007.48)
Net Cost Being Awarded 153,975.30 A
Budget for this project
Approved Budget 80,000.00
Total Budget 80,000.00 B
Total Estimated Surplus/(Deficit) (73,975.30) C
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department