Report to: General Committee Report
Date:
SUBJECT: Quality Management System Implementation Purchase Order Increase
PREPARED BY: Eddy Wu, P.Eng. Ext. 2737
Waterworks Quality Management System Controller
RECOMMENDATION:
That the report “Quality Management System Implementation Purchase Order Increase” be received;
And that approval be granted for Purchase Order D7-00215 to Delcan Corporation be increased by $150,000;
And that funds for this project be drawn from the 2008 capital budget account 53-5399-8277-005 QMS Implementation;
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 (Strategic, Affected Units) 6. Attachment(s)
PURPOSE:
The purpose of
this report is to obtain Council approval to increase Purchase Order D7-00215
for Quality Management System Implementation in accordance with the Town’s
BACKGROUND:
In August 2007, Request for Proposal # 111-Q-07 was issued for documentation of System Procedures and Standard Operating Procedures in compliance with the Drinking Water Quality Management Standard (DWQMS). The project was awarded to Delcan Corporation (Highest Ranked & 2nd Lowest Bidder) in December 2007. The project has been divided into three parts: Part A for identification and prioritization of processes, activities and tasks; Part B for Recommendations of a Document and Record Control System; Part C for Documentation of Waterworks Processes, Activities and Tasks. Both part A and B have been completed in 2007, with part C carried forward to 2008. Part C has been further divided into C1 and C2, with C1 undertaking a pilot exercise to conduct the documentation of selected processes, and C2 focuses on the documentation of all identified processes within Waterworks. The work required under part C are ongoing at this time.
The level of authority for Capital Expenditures that exceed (contract overruns) awarded commitments are outlined in the Expenditure Control Policy. Since this contract overrun is greater than $100,000 it requires Council approval.
OPTIONS/ DISCUSSION:
Contract 111-Q-07 was awarded to Delcan in December
2007 and within this award and bid document staff estimated the required amount
of Documentation of Waterworks Processes, Activities and Tasks (Major and Minor
processes) that were required to be completed.
Based on the updated Waterworks data, it has been realized that an
additional 100 Major Processes ($750 each), and 150 Minor Processes ($500 each)
are needed compared to the original estimate.
These costs for major and minor processes are the same itemized pricing
received in contract 111-Q-07 and will remain firm fixed until completion of
the project.
The capital account 53-5399-8277-005 QMS Implementation has been set up in 2008 for $400,000. This budget includes $175,000 to complete Part C- Documentation of Waterworks Processes, Activities and Tasks, together with the Risk Assessment & Risk Outcomes for $75,000 and Emergency Management & Preparedness for $150,000.
In addition, Delcan’s work-plan to complete the Documentation of Waterworks Processes, Activities and Tasks process already includes components for Emergency Management & Preparedness for which $150,000 is allocated. Therefore, since Delcan is already performing of this component, Staff has determined that it is more efficient for Delcan Corporation to manage the entire Emergency Management & Preparedness component as the consultant is already familiar with the documentation structures and needs. The additional 250 processes identified above include completion of the Emergency Management & Preparedness.
It is Staff’s recommendation to increase
Delcan Corporation’s purchase order D7-215 by $150,000 to $325,000 to cover the
revised work cost for Documentation of Waterworks Processes, Activities and
Tasks and also for the Emergency Management & Preparedness component. The
$150,000 originally allocated to Emergency Management & Preparedness will
be used as the funding source for the
Staff is confident that the $150,000 originally allocated to the Emergency Management & Preparedness component will be sufficient funding to cover the increased cost of the Documentation of Waterworks Processes, Activities and Tasks and the Emergency Management & Preparedness components.
|
The following table is a summary of the financial considerations for
this report: |
||||
|
Current Budget Available (unspent) |
|
$172,576 |
|
53-5399-8277-005 QMS Implementation |
|
Less Cost |
|
($150,000) |
|
Awarded to Delcan Corporation |
|
Budget Remaining |
|
$22,576 |
* |
|
*Balance remaining to be used for other QMS related costs including training as needed.
ALIGNMENT WITH STRATEGIC PRIORITIES:
Not applicable
DEPARTMENTS CONSULTED AND
AFFECTED:
The Finance and Purchasing Departments have been consulted and have provided guidance accordingly.
RECOMMENDED
BY: ________________________
Jerry Klaus
General Manager, Waterworks
________________________
Peter Loukes, P.Eng.
Director, Operations
________________________
Brenda Librecz
Commissioner, Community & Fire Services
ATTACHMENT:
P:\Commission
Share\Operations and Asset Management\Reports\2008\Waterworks\Municipal
Licensing Program\QMS
Implementation