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.
Projected Construction Costs 880531
Projected Construction Cost 879619
TOTAL EXPENSES
BALANCE
$0
*Any surplus funds will be returned to New Gas Mains Capital 876441 & Gas Capital Surplus
879619.
Larry Gordon
Director of Purchasing
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