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Home My WebLink AboutCOD-025-09Clari~~ton aQaaAg rbe way REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: Monday, March 30, 2009 Report #: COD-025-09 File # ~e.~ I ~i-~ a~ ~-~ F~ -dSF~- c~ 7 By-law # Subject: TENDER CL2009-5, HIGH FLOAT RESURFACING Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-025-09 be received; 2. THAT Miller Paving Limited, Gonnley, Ontario with a total revised bid in the amount of $733,206.60 (excluding G.S.T.), being the lowest responsible bidder meeting all tenns, conditions and specifications of tender CL2009-5, be awarded the contract for the 2009 High Float Resurfacing as required by the Operations Department; 3. THAT funds required in the amount of $859,706.60 (which includes $733,206.60 tendering, engineering, administration and contingencies) be drawn from the Department of Operations, 2009 Capital Budget Rural Road Resurfacing account # 110-36-330- 83680-7401; and 4. THAT pending satisfactory pricing and service the contract is extended for an additional one year. Submitted by: Reviewed by: ~ =~'~1~~ ie Marano. H.B.Sc.. C.M.O., klin Wu, of Director Chief Administrative Officer MMIJDBIBH CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T(905)623-3379 F (905)623169 REPORT NO.: COD-025-09 PAGE 2 1. BACKGROUND AND COMMENT 1.1. Tender specifications were provided by AECOM for the 2009 High Float Resurfacing as required by the Operations Department. 1.2. The tender makes provision for the extension of the agreement for a second year provided the service is satisfactory and prices are acceptable. 1.3. Tenders were publicly advertised in the local paper as well as electronically. Subsequently, two tenders were received and tabulated as per Schedule "A" attached. 2. ANALYSIS 2.1. After review and analysis of the bids by the Operations Department, AECOM Associates and Purchasing, it was mutually agreed that the low bidder, Miller Paving Limited, Gormley, Ontario, be recommended for the contract for the 2009 High Float Resurfacing project. A copy of the recommendation memo from AECOM, is attached as Schedule "B". 2.2. The recommended low bidder has previously performed satisfactory work for the Municipality of Clarington. 2.3. For the information of Council, the average unit prices per tonne and cubic metre quoted for this project represents an approximate 3% increase over the 2008 bid. 2.4. Queries with respect to the department needs, specifications, etc. should be referred to the Director of Operations. 3. FINANCIAL IMPLICATIONS 3.1. The low bid from Miller Paving Limited exceeds the project budget when costs for administration, inspection, testing and contingencies are taken into consideration. Therefore, the scope of work has been adjusted so that the project will fall within the budget requirements. 3.2. Details of the changes to the scope of work are outlined in the attached memo from AECOM. REPORT NO.: COD-025-09 PAGE 3 3.3. The total project cost of $859,706.50 (which includes adjusted $733,206.60 tendering, engineering, administration and contingencies) will be drawn from the 2009 Operations Department Capital Budget Rural Road Resurfacing Account #110-36-330-83680-7401. 3.4. The budget for the 2009 rural road resurfacing contract was approved at $860,000.00. 4. CONCLUSION 4.1. That the low compliant bidder, Miller Paving Limited, Gormley, Ontario, be recommended for the contract for the 2009 High Float Resurfacing project. 5. INPUT FROM OTHER SOURCES 5.1. This report has been reviewed for recommendation by the Purchasing Manager, with the appropriate departments and circulated as follows: Concurrence: Director of Operations Attachments: Attachment 1 - Schedule "A", Bid Summary Attachment 2 - Schedule "B", Recommendation Letter from AECOM Schedule "A" Bid Summary Tender CL2009-5 BIDDER TOTAL BID REVISED BID (Excluding GST) (Excluding GST) Miller Paving Limited $835,851.25 $733,206.60 Gormley, ON *Royel Paving Limited $929,248.83 $821,205.89 Lindsay, ON *mathematical correction required Schedule "B" Recommendation Letter from AECOM Tender CL2009-5 I AECOM AECOM 300 Water Street. Whitby, ON, Canada L 1N 9J2 T 905.668.9363 F 905.666.0221 www.aecom.com March 16, 2009 Mr. F. Horvath Director of Operations The Municipality of Clarington 40 Temperance Street BOWMANVILLE, ON L 1 C 3A6 Dear Sir: Re: 2009 High Float Resurfacing Tender Contract No. CL2009-5 (the "Contract") Municipality of Clarington Tenders for the above project were opened at the Municipal Offices on Tuesday, February 24,2009. A list of the bids received is provided in the table below. All numbers are exclusive of GST. BIDDER TOTAL BID lGST Excluded) Miller Paving Limited $835,851.25 Gormlev, ON Royel Paving Limited $929,248.83* Lindsav, ON * Mathematical Correction Reauired/Did not alter bid order The Municipality of Clarington's Purchasing Department (the "Purchasing Department") reviewed all bids. AECOM Canada Ltd. ("AECOM") has reviewed all bids accepted by the Purchasing Department and confirmed the bid values noted above. Miller Paving Limited ("Miller") is the lowest bidder. Its submitted tender has been reviewed and is compliant. As requested by the Purchasing Department, references were checked only for the lowest bidder. Miller has completed a number of similar scope projects Including work for Carling Township, the Town of East Gwillimbury, and the City of Pickering, and it has been providing this service to Clarington for the past two years. The referenced clients were contacted and all responded favourably. The low bid from Miller Paving Limited exceeds the project budget when costs for administration, inspection, testing, and contingencies are factored in. The tender documents allow the municipality to adjust the tendered amount by up to 30% (Schedule A, Adjustment to Contract), and possible revisions were reviewed with municipal staff to ensure budget compliance. In order to meet the approved 2009 budget, the following actions are proposed: Page 2 Municipality of Clarlngton March 16. 2009 a) After tendering this project, the municipality was informed it would be receiving Building Canada Fund funding for paving Concession 7/8 from Highway 35/115 to the west boundary (this is a separate project administered by the Clarington Engineering Department). This project will therefore require the deletion of Part C, Item b), Concession 8 from this project resulting in a saving of $50,281. b) From the review with municipal staff, it is recommended that Part B, Item F (Concession 4 from Bragg Road westerly to the creek) be deleted resulting in a saving of $52,363.65. Deleting the same items from Royal's bid using Royel's unit rates does not change the bid order. The estimated costs for various project components, based on the low bid, are summarized in the table below. Miller Bid $835,851.25 Delete Part B, Item f) ($52,363.65) Concession 4 (see below) Delete Part C, Item b) ($50,281.00) Concession 8 (see below) Net Value of Tender Award $733,206.60 Project Costs: Tender Prep/Administration' $55,000.00 Insoectlon (7.5%) Materials Testing $16,500.00 Contingencies (7.5%) $55,000.00 Costs Total $126,500.00 Total Project Costs $859,706.60 Budget Budget Balance $860,000.00 $293.40 Based on the references contacted regarding performance on their previous work, in our opinion, the tender in the amount of $733,206.60 (exclusive of GST) could be awarded to Miller Paving Limited of Gormley, Ontario, provided that all provisions of the Clarington Purchasing Bylaw have been met and subject to allocation of funding by Council. Should you have any questions regarding this matter, please contact the undersigned. Sincerely, AECOM Canada Ltd. ~hg. ian.roger@aecom.com IR