Report to: General Committee Report Date: May 05, 2010
SUBJECT: Award of Tender # 103-T-10 2010 Relining of Cast Iron and Ductile Iron Watermains
PREPARED BY: Ernie Ting Ext: 3650
Rosemarie Patano Ext: 2990
RECOMMENDATION:
1) THAT
the report entitled “Award
of Tender # 103-T-10 2010 Relining of Cast Iron and Ductile Iron Watermains” be received; and
2) THAT the contract for 2010 relining of cast iron and ductile iron watermains
be awarded to the lowest priced bidder, Fer-Pal
Construction Ltd., in the total
amount of $995,335.32 inclusive of HST; and
3) THAT a contingency in the amount of $99,533.53 inclusive of HST, be established to cover any additional construction costs,
and that the General Manager of Waterworks be authorized to approve expenditure
of this contingency amount up to the specified limit; and
4) THAT this contract be funded from the 2010 Capital Budget Account 053-6150-10321-005 “Cement Relining of Iron Watermains”; and
5) THAT upon completion of the project the remaining funds be returned to the original funding source; and further
6) THAT Staff be authorized and directed to do all things necessary to give effect to this resolution.
EXECUTIVE SUMMARY:
Not Applicable.
PURPOSE:
The purpose of this report is to award the contract for 2010 relining of cast iron and ductile iron watermains.
BACKGROUND:
A 20-year program to
cement line ductile iron watermains was approved and adopted by Council in
1997. Recent field verification in the Town of Markham water
distribution system confirmed a total length of 82.0 km of unlined ductile iron
watermains. Most of these watermains are in good structural condition, but have
poor water quality due to internal corrosion. Currently 72.0 km of
watermains have been relined.
The 2010 relining
project will occur on the following streets:
Approximately 2.1 km
of watermains will receive relining this year. The remaining unlined ductile
iron watermains will be completed in the next two years.
Cement relining program extends the life expectancy of the watermains and results in:
· Restoring water quality to meet the Ontario Ministry of Environment Drinking Water Quality Standards.
· Reducing costs for watermain rehabilitation and replacement.
· Extending watermain life expectancy to +50 years, in terms of water quality control.
· Improving supply capacity (better water flow) for domestic usage and fire demand.
· Minimizing unnecessary disturbance and inconvenience to water customers.
OPTIONS/ DISCUSSION:
Not Applicable.
FINANCIAL CONSIDERATIONS AND TEMPLATE:
Bid Information:
|
Advertised, place and date |
|
|
Bids closed on |
|
|
Number of Bidders picking up bid
documents |
5 |
|
Number of Bidders responding to
bid |
4* |
* Two (2)
bidders were disqualified after bid opening.
One (1)
bidder after bid opening was disqualified for submitting non-compliant
bid. The bidder had mathematical errors
that resulted in an uncertain bid price
“The Town in its sole discretion may reject as
non-complaint Tender which contains omissions, erasures: is ambiguous or
unclear as to meaning or intent”.
One
(1) bidder after bid opening was disqualified for not meeting the mandatory
bonding requirements. The “Bid Bond” and
the “Agreement to Bond” are not valid unless they are executed by the surety
company and submitted in the original form.
Detailed Pricing Information:
|
Company |
Total Price, Inclusive
of HST |
|
Fer-Pal Construction Ltd. |
$ 995,335.32 |
|
$ 1,210,776.00 |
Based on similar unit items in the 2009 contract, the pricing has increased by an estimated amount of 3%.
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:
The following table is a summary of the
financial considerations for this report:
|
Original Budget and Account # |
|
$1,380,000 |
|
053-6150 -10321- 005
Relining of Cast Iron and Ductile Iron Watermains |
|
Current Budget Available (unspent) |
|
$1,380,000 |
|
|
|
Less Cost |
|
($995,335) |
|
Awarded to Fer-Pal
Construction Ltd. |
|
Less Contingency |
|
($99,534) |
|
|
|
|
|
|
|
|
|
Budget Remaining |
|
$285,131 |
|
|
Upon completion of the project the remaining funds shall be returned to the original funding source. Note: Contract will be managed by internal staff, therefore no external contract administration fees are required.
HUMAN RESOURCES CONSIDERATIONS:
Not Applicable.
ALIGNMENT WITH STRATEGIC PRIORITIES:
Not Applicable.
BUSINESS UNITS CONSULTED AND
AFFECTED:
·
· Communication and Community Relations – Residents to be informed of the project schedule and work to be done on each street.
· Fire & Emergency Services – To be informed of limited fire flow during construction.
· The Finance Department has been consulted and has provided input and reviewed this report.
· Legal was consulted on the two bid disqualifications.
RECOMMENDED
BY:
ATTACHMENTS:
2010 Cement Relining of Cast Iron and Ductile Watermains – Project Location