HomeMy WebLinkAboutTender - T06-052 - Gas Pipeline ConstructionDate: June 13~', 2006
To: Mayor Carl Zehr & Members of Council
Subject: T06-052 -Gas Pipeline Construction
RECOMMENDATION
That tender T06-052, Gas Pipeline Construction, be awarded to Link-Line Contractors Ltd.,
Mississauga, Ontario for atwo-year period, with an option to renew for one additional year, at
their adjusted tendered price of $4,589,758.23, including contingencies of $714,905.65 and
G.S.T., and further that the Mayor and City Clerk be authorized to execute an agreement
satisfactory to the City Solicitor.
REPORT
Tenders were requested from four (4) potential bidders, advertised publicly in The Record, The
Daily Commercial News, the City of Kitchener website and on the Internet through the Ontario
Public Buyers Electronic Tendering Information System. Four (4) potential bidders picked up
tender documents, and by the closing date of Thursday June 8~', 2006, three (3) tenders had been
received.
The tenders were reviewed by L. Jones, Utilities Engineer, who concurs with the above
recommendation. All three bids contained arithmetic errors that have been corrected and did not
affect the ranking.
The following tenders were received:
Tendered Price Adjusted Tendered Price
Link-Line Contractors Ltd. Mississauga, ON $4,589,694.30 $4,589,758.23
Aecon Utilities Toronto, ON $4,594,941.72 $4,645,594.63
Robert B. Somerville King City, ON $5,179,428.30 $5,235,741.12
Kitchener Utilities has the natural gas franchise for most of Kitchener. With those franchise
rights comes an obligation to serve if the installation is economically feasible. For almost all
new construction, it is economically feasible and therefore Utilities needs to expand its' pipe
network and servicing from its' system. Utilities internal resources (equipment and manpower)
are insufficient to install the additional piping thus necessitating the call of a tender for outside
contractor capabilities.
FINANCIAL IMPLICATIONS
Funding will be provided from indices 876441, 876086 and 879537 -Gas Pipeline Construction
REVENUES
Opening Balance ($ 445,864.)
Contribution from Gas $5,467,345.
Other external recoveries $ 9,050.
TOTAL $5,030,531.
EXPENSES
Construction Costs Year to Date $ 802,785.
T06-052 $4,589,758.23
Less G.S.T. Rebate $ 300,324.23
$4,289,434.00 $4,289,434.
TOTAL $5,092,219.
BALANCE ($ 61,688).
* This is a two-year project, 2006 and 2007 funds are included in the revenues.
~<~< Any deficit remaining at the end of the project will be recovered in futures years from the
general provision accounts as noted.
Larry Gordon
Director of Purchasing
