HomeMy WebLinkAboutFIN-09-116 - T09-071 - Gas Pipeline ConstructionF~ari~a~dl,5~ers+k~s:
REPORT ,
REPORT T0: Mayor Carl Zehr & Members of Council
DATE OF MEETING: 2009-08-24
SUBMITTED BY: Larry Gordon, Chief Purchasing Officer
PREPARED BY: Larry Gordon, Chief Purchasing Officer (2214)
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2009-08-19
REPORT N0: FIN 09-116
SUBJECT: T09-071 -Gas Pipeline Construction
RECOMMENDATION:
That tender T09-071, Gas Pipeline Construction, be awarded to Aecon Utilities, a Division of
Aecon Construction Group Inc., Toronto, Ontario at their tendered price of $6,016,425.17,
including contingencies of $954,988.12 and G.S.T., covering two construction seasons ending
on May 31St, 2011, with an option to renew for one additional construction season, and further
that the Mayor and City Clerk be authorized to execute an agreement satisfactory to the City
Solicitor.
BACKGROUND:
The Gas Pipeline Construction Contract T09-071 addresses the need to install underground
polyethylene or steel gas mains and services to new customers or to replace aging or failing
existing piping, throughout all seasons. This work is needed to ensure that the City of
Kitchener homeowners and business owners all have equal and safe access to natural gas, if
they require it. It is the intention of Utilities to have the contractor maintain the roles and
responsibilities as the constructor for the various gas pipeline installation projects for the life of
this contract.
REPORT:
Tenders were advertised publicly in The Record, The Daily Commercial News, on the City of
Kitchener website and 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 August 6t", 2009, two (2) tenders had been received.
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The following tenders were received:
Aecon Utilities
Link Line Contractors
Toronto ON
Vaughan ON
TOTAL BID PRICE
$6, 016, 425.17
$6, 276, 722.36
The tenders were reviewed by L. Jones, Utilities Engineer, and B. Musselman Manager,
Utilities, who concurs with the above recommendation.
FINANCIAL IMPLICATIONS:
Funding will be provided from Internal Orders 11022, 67, 11025 and 11020 -Gas Pipeline
Construction.
Financial Report is attached.
* Any surplus funds will be used for future Gas Capital Upgrades
** This is a 2 year project therefore funds for 2010 and 2011 are included in the revenue column
ACKNOWLEDGED BY: Dan Chapman, General Manager of Financial Services
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Gas Pipeline Construction Contract T09-071
Internal Order #11022,67,11025,11020
Funding Sources
Current Balance as at August 18, 2009 2,481,048
2010 Budget Allocation 2,721,000
2011 Budget Allocation 2,367,000
Total Revenue Projected 7,569,048
Projected Expenditures
Tender Request 5,729,929
Existing Encumbrances -
Total Expenditures Projected 5,729,929
~ Projected Surplus 1,839,120
INote: All amounts above are net of GST rebates.
*Any surplus funds will be used for future Gas Capital Upgrades
**This is a 2 year project, therefore funds for2010and 2011 are included in the revenue column above.
8/20/2009 Q:Wgendas\Committee of the Whole~2009Wug 24\FIN-09-116 attachment.xls August 18 09
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