HomeMy WebLinkAboutFIN-2022-061 - Non-Standard Procurement - Domestic Natural Gas Meters (series 250)
Financial Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: January 24, 2022
SUBMITTED BY: Ryan Scott, Manager, Procurement 519-741-2200 ext. 7214
PREPARED BY: Brad Kowaleski, Procurement Specialist, 519-741-2200 ext.
7063
WARD(S) INVOLVED: N/A
DATE OF REPORT: January 18, 2022
REPORT NO.: FIN-2022-061
SUBJECT: Non-Standard Procurement Domestic Natural Gas Meters (series
250)
RECOMMENDATION:
That Elster Canadian Meter Company Inc, Burlington, Ontario, be the sole source
provider for Domestic Natural Gas Meters (series 250 meters) at their quoted price of
$641,950.00, plus H.S.T. of $83,453.00, for a total of $725,403.50, for a one (1) year
term.
REPORT HIGHLIGHTS:
The purpose of this report is to obtain approval to proceed with an award as per
Purchasing By-law 2017-106;
This report supports the delivery of core goods.
BACKGROUND:
This purchase is for small domestic gas meters (referred to as series 250). Meter exchanges
are regulated through Measurement Canada and the City is required to comply with
regulations as prescribed by Measurement Canada. The number of meters required each
year varies dependent on the number of meters due for replacement in a given year and the
level of new development.
The replacement of gas meters is an on-going maintenance, repair and operational
requirement. The average annual spend is $680,773.
REPORT:
A Standard Procurement (competitive public process) was conducted, and two bids were
received. Neither of the bids met specific technical requirements, which included supply and
delivery in 2022.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
As per clause 170.8.2 of the Purchasing By-law 2017-106, it states, -
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 Supplier and no alternative or substitute exists;
As per clause 170.8.3 of the Purchasing By-law 2017-All non-standard
Procurement processes must be approved and conducted in accordance with this By-law
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
The quotation was reviewed by P. Takk, Manager, Gas Measurement and Service, who
concurs with the above recommendation.
The price for the series 250 meters has increased 33.8% from the 2021 contract price.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core goods.
FINANCIAL IMPLICATIONS:
The net cost for this proposal (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 Capital budget. The estimated deficit (D) will be funded
from the Gas Meter Installation capital account. There are sufficient funds in the account to
fund the deficit.
Financial Summary
Domestic Natural Gas Meter (Series 250)
Estimated Cost
Quote costs, including HST 725,403.50
less: HST rebate on quote (83,453.50)
Net Cost Being Awarded 641,950.00 A
Costs Incurred to Date -
Projected Costs : Staff Time -
Estimated Cost 641,950.00 C
Budget for this Phase of Work
Small gas meters - 2022 487,000.00
Budget for this Purchase 487,000.00 B
Estimated Surplus/(Deficit) (B - C) (154,950.00) D
COMMUNITY ENGAGEMENT:
INFORM
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