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HomeMy WebLinkAboutFIN-07-069 - T07-040 - Steel Pipe for Natural Gas Distribution Report To: Mayor Carl Zehr & Members of Council Date of Meeting: 2007 -06-11 Prepared By: Larry Gordon Date of Report: 2007 -06-05 Report No: FIN 07-069 Subject: T07-040 - Steel Pipe for Natural Gas Distribution RECOMMENDA TION That tender T07-040, Steel Pipe for Natural Gas Distribution, be awarded to Emco Corporation, Kitchener, Ontario at their tendered price of $325,627.78, including P.S.T. and G.S.T. BACKGROUND The City purchases steel pipe as required for extending natural gas distribution. This requirement had been forecasted a number of years ago and is now coming to fruition. Pipe is required to construct a trunk distribution main that will support Kitchener's gas distribution network. This main will provide additional security of supply to the gas distribution network as a whole and facilitate the expansion of the network, as required by growth in the south-west corner of Kitchener. The main will be constructed on Fischer-Hallman Road from just north of Bleams Road to a location just south of Huron Road, and will be connected to the existing distribution system at a number of locations. REPORT Tenders were advertised publicly in The Record, the City of Kitchener web site and on the Internet through the Ontario Public Buyers Electronic Tendering Information System. Nine (9) potential bidders picked up tender documents, and by the closing date of Thursday April 19th, 2007, two (2) tenders had been received. The following tenders were received: Option 1. Schedule "A", Pipe: Light Wall Option 2. Schedule "B", Pipe: Standard Wall Emco Corporation Kitchener, ON. $337,875.71 $473,032.51 Comco Pipe & Supply Guelph, ON. $388,987.26 $545,979.06 $388,977.12 (adjusted) The award amount in relation to the total bid prices tendered differ due to the optional types of steel pipe available. The City has selected to purchase a combination of light and standard sized pipe. In addition, the quantity to be purchased has been modified. The tender received from Comco Pipe & Supply contained a mathematical error that has been corrected. The tenders were reviewed by L. Jones, Utilities Engineer, and S. Rudak, Buyer, who concur with the above recommendation. FINANCIAL IMPLICATIONS Funding will be provided from Indices 880531 - Fischer Hallman Gas Main Construction and 879619 - New Regulator Stations REVENUES 880531 Contribution from Gas Capital 879619 Contribution from Gas Capital 879619 Contribution from Gas Operating TOTAL REVENUES $ 850,000. $ 368,001. $ 20~000. $1,238,001. EXPENSES T07-040 (880531) Less G.S.T. Rebate $307,667.12 ($ 17~415.12) $290,252.00 $ 290,252. T07-040 (879619) Less G.S.T. Rebate $ 19,331.22 ($ 1~094.22) $ 18,237.00 $ 18,237. $ 559,748. $ 369~764. $1,238,001. 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