Report to: General Committee Date Report Authored: November 24, 2010
SUBJECT: Award of Tender 006-T-10 Steelcase Road East Sanitary Sewer Repair
PREPARED BY: Daniel Liu, Infrastructure Analyst Engineer, ext. 6210
Patti Malone, Senior Buyer, ext. 2239
RECOMMENDATION:
1) THAT the report entitled “Award of Tender 006-T-10 Steelcase Road East Sanitary Sewer Repair” be received;
2) THAT the contract for tender 006-T-10 Steelcase Road East Sanitary Sewer Repair be awarded to the sole bidder, Tectonic Infrastructure Inc., in the amount of $396,813.84 inclusive of HST;
3) THAT a contingency be established in the amount of $29,603.40 inclusive of HST to cover any additional construction costs;
4) THAT the award be funded from the Sewer System Upgrade Program account #053-6150-8334-005 of the Town’s 2008 Capital Budget in the amount of $426,417.24 inclusive of HST;
5) 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 the contract for Steelcase Road East Sanitary Sewer Repair.
BACKGROUND:
Two (2) sections of sanitary sewer pipes on Steelcase Road East from Victoria Park Ave eastward (167 meters) have been severely damaged by the corrosive wastewater effluent discharged, believed to be from the nearby property owner. Further to actions to recover the total cost of the repair through legal process from the property owner, Waterworks is recommending to proceed with repairing the sewers to mitigate further damage and risks.
Tender number one (1) (106-T-10) for open-cut replacement was issued in April 2010, and two (2) bids were received with prices more than 50% higher than the budget amount. Both bidders, failing to provide an Agreement to Bond within the bid submissions were disqualified, and the tender was cancelled accordingly.
To bring down the repair cost, alternative construction methodologies were discussed with the consultant and a trenchless technology method was chosen. The project was re-tendered in September, 2010 under 006-T-10.
BID INFORMATION:
|
Advertised, place and
date |
|
|
Bids closed on |
September 24, 2010 |
|
Number of contractors
picking up bid documents |
9 |
|
Number of contractors
responding to bid |
1 |
Note: Purchasing received feedback from a number of companies who picked up the bid document but did not provide a submission: Two (2) bidders could not perform a portion of the work. One (1) bidder offered a price as a sub to another contractor. One (1) bidder felt they did not have enough experience to be considered by the Town. One (1) bidder felt the job was too difficult. One (1) bidder could not meet the Town’s specifications.
PRICE
SUMMARY:
|
Supplier |
Price
(Inclusive of HST) |
|
Tectonic Infrastructure Inc. |
$396,813.84* |
* Price does not include the contingency amount of $29,603.40 for provisional items that may or may not be required: (Paid duty officer, reinstate pavement markings, Restore boulevards including supply and place topsoil and sod, grading, rolling and staking and test pits for utility and service locates).
DISCUSSION:
For the first tender (106-T-10) for sanitary sewer repair utilizing an open-cut replacement, the two (2) bid prices of $854,031.00 and $620,478.00 were significantly higher than the anticipated repair cost of $400,000.00. Town staff recognized the price for open-cut construction was too high and consulted with the Town’s consultant to investigate alternative construction methodologies to reduce the total construction cost.
Trenchless technology by Cured-in-Place Pipe (CIPP) relining method with pipe bottom grouting was chosen and specified in the contract requirement. This has been determined as the best acceptable method of repair that will restore the structural integrity and flow capacity of the existing pipe at reasonable costs. This chosen trenchless repair method will significantly reduce traffic disruptions, minimize social and environmental impact.
A revised tender was issued in September, 2010 under 006-T-10. One (1) bid was received by Tectonic Infrastructure Inc., who submitted a price very close to the budget. Feedback from other companies who picked up the tender document but did not provide bid submissions is shown above in the Bid Information section.
Prior to moving forward with the award, Town staff and the consultant met with the sole bidder (Tectonic) and its sub-contractor to ensure the proposed repair method provided by the bidder is acceptable to all. Town staff and the consultant have reviewed the technical aspects of the proposal and recommend that the Town accept the bid submitted by Tectonic.
FINANCIAL CONSIDERATIONS AND TEMPLATE:
The following table is a summary of the financial considerations for this report:
|
Original Budget and Account # |
|
$ 1,300,000.00 |
|
053-6150-8334-005 Sewer System
Upgrade Program |
|
Spent to Date |
|
-$
23,957.25 |
|
|
|
Committed |
|
-$
20,890.98 |
|
|
|
Budget Available |
|
$ 1,255,151.77 |
|
|
|
Amount to Allocate to this Project |
|
-$
426,417.24 |
|
Awarded
to Tectonic Infrastructure Inc. |
|
Budget
Remaining |
|
$
828,734.53 |
|
|
Note: The remaining budget will be used for other sewer upgrades as identified under account 053-6150-8334-005.
HUMAN RESOURCES CONSIDERATIONS
Not applicable
ALIGNMENT WITH STRATEGIC PRIORITIES:
Not applicable
BUSINESS UNITS CONSULTED AND AFFECTED:
Purchasing
and Legal department have been consulted during this process of moving forward
with a sole bidder and the
recommendation to proceed with signing an agreement with Tectonic to undertake
this project.
RECOMMENDED BY:
