Report to: General Committee Date Report Authored: September 11, 2009

SUBJECT: Award of Tender 181-R-09 Electrical Service and Maintenance for Town Facilities

PREPARED BY: Gil Verbeek, ext. 3410

Patti Malone, ext. 2239

RECOMMENDATION:

1) That the report entitled “Award of Tender 181-R-09 Electrical Service and Maintenance for Town Facilities” be received;

2) And That the contract for Tender 181-R-09 Electrical Service and Maintenance for Town Facilities be awarded to the highest ranked bidder, third lowest priced bidder, Kudlak-Baird (1982) Limited, in the estimated amount of $1,063,840.00 over a 4 year period from October 1, 2009 to September 30, 2013;

3) And That the Director of Asset Management and Manager of Purchasing be authorized to exercise the option to renew contract 181-R-09 after the first year for three year option renewal to be exercised at one year intervals, at a 3% escalation per year (applied to labour only), subject to performance and budget approval;

4) And That the awards be funded from the the various Town Departments Operating and Capital budget accounts on an as required basis;

5) And That Staff be authorized to amend the award amounts in years 2010-2013 to reflect changes to the various user budget accounts (listed in the financial template) approved by Council during the annual budgeting process;

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

PURPOSE:

The purpose of this report is to obtain Council approval to award contract 181-R-09.

BACKGROUND:

This contract is to provide electrical services and maintenance on a 24 hour, 7-day-per-week basis including priority emergency services of one hour response time for all Town wide facilities.

The highest ranked proponent, Kudlak-Baird has been providing electrical services throughout the town for the last 11 years and their performance has been positive.

OPTIONS/ DISCUSSION:

All bids were issued in accordance with the Purchasing By-law 2004-341. The award is recommended to the highest ranked, third lowest priced bidder. Staff have reviewed the bid documents and are satisfied that all terms, conditions, bid prices and technical specifications comply with the Town’s requirements.

PROPOSAL INFORMATION:

Advertised, place and date	ETN
Bids closed on	July 29, 2009
Number picking up bid documents	32
Number responding to bid	4

EVALUATION RESULTS:

The evaluation team for this RFP was comprised of staff from Asset Management Department with Purchasing staff acting as the facilitator. The evaluation was based on the pre-established evaluation criteria as listed in the Request for Proposal: price 30%, project delivery/specification 30%, qualifications of personnel/vehicles 20% and past experience of bidder 20%, with resulting scores as follows:

BIDDER	Score (Out of 100)	Ranked Results
Kudlak-Baird (1982) Limited	92	1
ALJ Electrical	85	2
Alltech Electrical	82	3
Vickery Electric	69	4

Note: Price ranges are $996,316.00 (low bidder) to $1,132,698.00 (high bidder).

Kudlak-Baird (1982) Limited is the highest ranked and third-lowest priced bidder, who’s estimated annual cost is 7% higher than the low bidder. The recommended proponent has demonstrated a better understanding than the other proponents, on how to achieve the deliverables as outlined within the RFP document including time frames, methodology, work plan and resource alignment being assigned to this project. Also, they had significant past experience and knowledge of municipal work. The proponent has a good understanding of the Town’s infrastructure for troubleshooting and was the only proponent who owns a scissor lift that can rent to the Town at a significantly reduced cost.

FINANCIAL CONSIDERATIONS AND TEMPLATE:

Estimated annual requirements:

Duration	Labour	Material	Scissor Lift	Total
Year 1, October 1/09 to September 30/10	$156,140.00	$97,750.00	$4,900.00	$258,790.00
Year 2, October 1/10 to September 30/11	$160,824.00	$97,750.00	$4,900.00	$263,474.00
Year 3, October 1/11 to September 30/12	$165,649.00	$97,750.00	$4,900.00	$268,299.00
Year 4, October 1/12 to September 30/13	$170,618.00	$97,750.00	$4,900.00	$273,268.00
Total	$653,231.00	$391,000.00	$19,600.00	$1,063,831.00

The estimated annual contract amount is based on 2,200 licensed electrician service hours and 500 apprentice hours (Year 08-09 estimate) at regular business hourly rates of $63.70 for licensed electricians and $32.00 for apprentices (year 1 rates). It also includes $85,000 a year in material and 28 scissor lift rentals a year. The award will be funded from the annual operating budgets of the user Departments. Recreation, Parks, Operations and Asset Management have historically been primary users of this contract.

HUMAN RESOURCES CONSIDERATIONS

Not applicable.

ALIGNMENT WITH STRATEGIC PRIORITIES:

Not applicable.

BUSINESS UNITS CONSULTED AND AFFECTED:

Not applicable

RECOMMENDED

BY: ________________________ ________________________

Steve Andrews Brenda Librecz, Director of Asset Management Commissioner, Community

& Fire Services