Report to: General Committee Report Date: May 05, 2008

SUBJECT: Award of Tender # 023-T-08 Townwide Building Mechanical Maintenance

PREPARED BY: Gil Verbeek, Extn 3410

Alex Moore, Extn 4711

RECOMMENDATION:

THAT the report entitled “Award of Contract # 023-T-08 Townwide Building Mechanical Maintenance” be received;

AND THAT the contract for # 023-T-08 Townwide Building Mechanical Maintenance (for various facilities as listed under Appendix A) be split between the two (2) lowest priced suppliers SIG Mechanical Inc. and Versatech Mechanical Inc;

AND THAT the contract for # 023-T-08 Townwide Building Mechanical Maintenance be awarded to SIG Mechanical Inc for the June 1^st – Dec 31^st 2008 period in the estimated amount of $97,358.33 exclusive of GST and a estimated annual value of $166,900.00 exclusive of GST for a period of four (4) years (2009-2012) totaling $682,771.21 exclusive of GST, based on stipulated price escalations of 3% in year 4 and 5 of the contract;

AND THAT the contract for # 023-T-08 Townwide Building Mechanical Maintenance be awarded to Versatech Mechanical Inc for the June 1^st – Dec 31^st 2008 period in the estimated amount of $27,302.33 exclusive of GST and a estimated annual value of $46,804.00 exclusive of GST for a period of four (4) years (2009-2012) totaling $191,470.49 exclusive of GST, based on stipulated price escalations of 3% in year 4 and 5 of the contract;

AND THAT the contract costs for the June 1^st to Dec 31^st 2008 period be funded from the 2008 Operating Budget Accounts as listed under Appendix A in the estimated annual amount of $124,660.66 exclusive of GST;

AND THAT the contract costs for the 2009, 2010, 2011 & 2012 periods (estimated $213,704.00 per annum, exclusive of GST plus stipulated price escalations as identified in Appendix A) be included in the operating budgets for the respective years pending Council approval of the operating budgets;

AND THAT Staff be authorized and directed to do all things necessary to give effect to this resolution.

EXECUTIVE SUMMARY:

Not applicable

1. Purpose 2. Background 3. Discussion 4. Financial

5. Others (Environmental, Accessibility, Engage 21st, Affected Units) 6. Attachment(s)

PURPOSE:

The purpose of this report is to obtain Council approval to award contract # 023-T-08 Townwide Building Mechanical Maintenance.

BACKGROUND:

This contract has been in place since approximately 1985. Award of this contract will provide for all-inclusive mechanical maintenance service including emergency service calls, repairs, replacement parts and preventive maintenance routines for 25 of our facilities. These include our major Recreation, Fire, Library, Operations and Cultural facilities as noted on Appendix 1. Smaller Town facilities (i.e. Pingle House, Warden House etc) were reviewed on previous contract bids and were not cost effective given the small amount of mechanical equipment at each site.

Preventive maintenance routines form the most important portion of this all-inclusive contract as the contractor is also responsible for all replacement of defective parts and equipment during the duration of the contract. Only non-maintainable parts are not included such as heat exchangers and water coils. These form a minor portion of the repairs required every year. Hence, it is in the contractor’s best interest to provide quality preventive maintenance to avoid equipment replacement costs. This same strategy will provide for uninterrupted and comfortable building use. Facility budgeting becomes much easier with one cost per year and very little in unexpected costs.

OPTIONS/ DISCUSSION:

SIG Mechanical Inc. submitted the lowest priced acceptable bid for all facilities other than Angus Glen Community Centre. The Town released this tender with the right to award this contract in part or in whole and to more than one bidder. Splitting this contract and awarding the Angus Glen Community Centre to Versatech Mechanical Inc. will save the Town $41,596 annually or $207,980 over the five (5) year term, compared to awarding the contract to one bidder. Purchasing and Asset Management staff have confirmed with Versatech that they have indeed included all aspects of the contract requirements in their total bid.

Therefore, staff recommend awarding this contract between SIG Mechanical Inc. and Versatech Mechanical Inc. who have successfully completed various similar contracts for the Town in the past.

BID INFORMATION:

Advertised, place and date	ETN
Bids closed on	March 28, 2007
Number of contractors picking up bid documents	12
Number of contractors responding to bid	4

DETAILED PRICING INFORMATION:

Company	Total Price, Excl GST
SIG Mechanical Inc.	$1,390,884.79
Versatech Mechanical Inc.	$1,670,230.51
Coral Engineering	$2,547,827.45
Housing Services Inc.	$2,971,214.89

The bid documents have been verified for accuracy and compliance with the tender specifications and staff are satisfied that all terms, conditions and bid prices comply with the Town’s requirements.

FINANCIAL CONSIDERATIONS AND TEMPLATE: (external link)

The following table is a summary of the financial considerations for this report:
Original Budget and Account #	$596,368.00	Various – see Appendix A
Current Budget Available (unspent)	$462,155.90
Less Cost	($124,660.66)	Awarded to SIG: $97,358.33 and Versatech $27,302.33 (Costs are for June to December 2008)
Less Contingency
Budget Remaining	$337,495.24

The remaining balance will be used for Facilities Maintenance costs as needed and budgeted for in the operating budget accounts identified.

ENVIRONMENTAL CONSIDERATIONS:

Not applicable

ACCESSIBILITY CONSIDERATIONS:

Not applicable

ENGAGE 21^ST CONSIDERATIONS:

Not applicable

BUSINESS UNITS CONSULTED AND AFFECTED:

Not applicable

RECOMMENDED

BY: ________________________ ________________________

Steve Andrews Peter Loukes

Director Commission Lead

Asset Management Operations & Asset Management

ATTACHMENTS:

Appendix A