Report to: General Committee Date
Report Authored: February 18, 2010
SUBJECT: Contract
Extension 014-T-09 Concrete Maintenance
PREPARED BY: Morgan Jones, Ext, 2285
Patti
Malone, Ext, 2239
RECOMMENDATION:
1)
That the report entitled
“Contract Extension 014-T-09 Concrete Maintenance be received”;
2)
And That the contract 014-T-09
for Concrete Maintenance be extended with VTA
Construction for Two (2) years (2010 -2011) in the estimated annual amount of $693,276
and at the same 2009 itemized pricing;
3)
And that the tendering process
be waived in accordance with Purchasing
By-Law 2004-341, Part II, Section 7, Non Competitive Procurement (c) “ When the
extension of an existing contract would prove more cost effective or
beneficial;
4)
And That the award be funded
from Operations and Waterworks Department 2010 Operating and Capital Budgets
accounts as detailed in the financial template and the 2011 budget upon approval;
5)
And That Staff be authorized to
amend the award amount in 2011 to reflect changes to Operations
and Waterworks Department Operating and Capital budget accounts (listed in
financial template) approved by Council during the annual budgeting process;
6)
And that Staff be authorized
and directed to do all things necessary to give effect to this resolution.
EXECUTIVE SUMMARY:
N/A
To obtain Council approval to extend contract 014-T-09
“Concrete Maintenance” for two (2) additional years at the same 2009 itemized
pricing.
Contract for the concrete maintenance, No. 014-T-09,
was tendered on February 2,
2009 and advertised through the Electronic Tendering Network. The contract was awarded to VGN Construction
Limited (VGN) on May 12,
2009 through Council approval (Attached). Within the Council extract of May 12, 2009, Staff
received authorization to proceed with the next low bidder (Peltar) should VGN
not accept the Purchase Order for contract No. 014-T-09.
VGN was acceptable to proceeding with the contract, however, from May 12th to June 10th, 2009 they
performed no work and continued to delay the start of the concrete maintenance
program. Upon commencement and as a result of poor performance, the contract
with VGN Construction was terminated through the appropriate authority levels.
The second lowest bidder as outlined within the
Council report, Peltar Paving was then contacted to see if they would be
willing to commence immediately. Peltar Paving advised Purchasing
that due to their work schedule and the late notification, they would be unable
to undertake contract 014-T-09. Purchasing
then approached VTA Construction (3rd
lowest priced bidder, 3% higher in cost than Peltar Paving) to try and secure
their services as the successful contractor for this contract.
On July
9, 2009, VTA
Construction was awarded the contract through a Staff award during Council
recess for a one (1) year term. In order
for the Town to meet maintenance objectives, the Operations
Department requested two crews instead of the contract implied single crew to
start the contract. Two crews were provided and all work required under the
first contract year, 2009, was completed by VTA on time/budget and to the full
satisfaction of the Town despite the delay.
There were no financial impacts as the two crews required less time to
complete the work.
The bid document for contract No. 014-T-09 had a one
(1) year term with a two (2) year option at the Town’s discretion and subject
to performance. Staff recommends
extending contract No. 014-T-09 for the two (2) additional years under the same
terms and conditions with VTA. Staff considers the two (2) year extension to
be consistent with the intent of the original award of tender for this
contract.
Staff have reviewed the option to cancel the
extension term and go back to the market place, however, due to the increased
demand for concrete/asphalt contractors to service road improvements through
the federal infrastructure projects across the GTA
(over $200 million identified), staff are concerned with the potential for
significant increase prices as a result of the market supply and demand. Additionally, the Operations
Department are very satisfied with the quality of work and commitment made by VTA on behalf of the Town to complete all concrete
maintenance work in 2009, despite the two (2) month delay in start of
construction.
Budgets provided in this award are also used in separate
contracts for road maintenance, interlocking repairs, sidewalk/curb repairs
parking lots repairs and Waterworks department operating requirements. Therefore, the Operations Department will
administer this contract and prioritize work in order to manage spending to the
approved budgeted amounts. Should the
prioritized work require additional funds beyond the approved budget amounts,
staff will follow the expenditure control policy to secure such funding.
Not Applicable
Not Applicable
Not Applicable
Council Extract May 12, 2009