HomeMy WebLinkAboutOPD-010-11 ATTACW ENT I TO
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REPORT
OPERATIONS DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: June 27, 2011 Resolution#: CR-n/'" By-law#: N/A
Report#: OPD-010-11 File#:
Subject: TENDER NO. CL2011-12, HIGH FLOAT RESURFACING REVISION
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report OPD-010-11 be received; and
2. THAT the additional capital funds required in the amount of$121,734.73 (net of
H.S.T. Rebate) to complete the High Float Resurfacing Project be drawn from the
unexpended funds remaining in the 2010 Operations Department Rural Road
Resurfacing Budget Account#110-36-330-83680-7401.
Submitted by: •i • Reviewed by:
Frei! 7'^, anklin Wu,
B.A., .D.M.R., ��.A. Chief Administrative Officer
Director of Operatic s
.■ _� '. J
ancy T. lor, B. .A., .A.,
Director of Finance/Treasurer
FJH/kr
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379
REPORT NO. OPD-010-11 PAGE 2
1.0 BACKGROUND AND COMMENT
1.1 On May 9, 2011 Council passed a resolution approving the award of a contract to
Miller Paving Limited, Gormley for the provision of high float resurfacing with a
total bid price of $1,058,084.86 (net of H.S.T Rebate). There is provision in the
agreement to extend the contract for a second and third year subject to
satisfactory service and acceptable pricing. A copy report of COD-013-11 is
attached as Schedule "A".
1.2 In June 2011 the Operations Department was advised by the Engineering
Department that seven hundred (700) metres of work on Lambs Road, north of
Highway #2 would be assigned to the developer.
1.3 This notification created additional road work opportunities. A thorough review of
road sections not included in the previous tender award was conducted. The
Operations Department identified additional road sections that were not included
in the 2011 contract. While this is within the approved budget, the Capital Project
Overexpenditure Policy requires Council approval as it exceeds the limit allowed
for extra work.
1.4 This report is being submitted for authorization in accordance with the
Administrative and Corporate Policy H17 - Capital Project Overexpenditures.
2.0 ANALYSIS
2.1 The purpose of this report is to provide updated information on the value of the
contract not only for 2011 but also to advise that the subsequent years may also
experience changes to the scope of work. However, all changes will be kept
within the budget limitations and traditional contract escalation allowance in the
range of 15 to 25%.
REPORT NO. OPD-010-11 PAGE 3
3.0 FINANCIAL
31 A review of the additional work requirements, revealed that the funding
availability for the extra work is as follows:
SUMMARY OF CURRENT COSTS Original Contract Revised Contract
Original Bid $1,039,784.65 $1,039,784.65
Additional Work $153,850.50
Engineering (from May 3, 2011 tender report letter) $62,387.08 $62,387.08
Material testing (from May 3, 2011 tender report letter) $15,596.77 $15,596.77
Contingencies $77,983.85 $43,762.60
TOTAL COSTS EXCLUDING HST $1,195,752.35 $1,315,381.60
Net 1.76% HST $21,045.24 $23,150.72
TOTAL COSTS WITH NET HST $1.216.797.59 n.338.532.32
2010/2011 Budget 110-36-330-83680-7401 $1,216,797.59 $1,216,797.59
2010 Budget 110-36-330-83680-7401 $121,734.73
1.216.797.59 11,M.532.32
4.0 CONCLUSION
4.1 The purpose of this report is to clarify the scope of work for the high float
resurfacing contract. Although a value is provided for the purpose of award, the
contract includes provision for the completion of additional work based on the
unit prices contained in the contract. There is also provision in the contract to
protect the municipality should the quantity of work fall short of the estimate.
Where increases exceed the limits established by the overexpenditure policy or
the budget, Council is informed and if necessary approval for additional funding
is requested.
4.2 As noted in the Financial Section, funding is provided in the 2010 / 2011 Capital
Budget Rural Road Resurfacing Account #110-36-330-83680-7401.
REPORT NO. OPD-010-11 PAGE 4
4.3 Queries with respect to department needs, specifications, etc., should be referred
to the Director of Operations.
5.0 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: Purchasing Manager
Attachments:
Schedule "A", COD-013-11
ATTACHMENT NO.: 1
REPORT NO.: OPD-010-11
SCHEDULE "A"
REPORT
CORPORATE SERVICES DEPARTMENT
Meeting: GENERAL PURPOSE.AND ADMINISTRATION COMMITTEE
Date: May 9, 2011 Resolution#: By-law#: N/A
Report#: COD-013-11 File#:
Subject: TENDER NO. CL2011-12, HIGH FLOAT RESURFACING
RECOMMENDATIONS:
It is respectfully recommended to.Council the following;
1. THAT Report COD-013-11 be received;
1 THAT Miller Paving Limited, Gormley, Ontario, with a total bid price of
$1,058,084.86 (net of H.S.T. Rebate), being the lowest responsible bidder meeting
all terms, conditions and specifications of Tender CL2011-12, be awarded the
contract for the High Float Resurfacing;
3. THAT funds in the amount of$1,216,797.59 (net of K.S.T. Rebate) which
includes $1,058,084.86 for tendering, administration, material testing and
contingencies be drawn from the Operations Department 2011 Capital-Budget
Rural Road Resurfacing Account#110-36-330-83680-7401; and
4. THAT pending satisfactory pricing and service the contract be extended for a
second and thir ,1bar.
Submitted by: Reviewed by:
e Marano, H.B.Sc., C.M.O., Franklin Wu,
Director of Corporate Services Chief Administrative Officer
Nancy Taylor, B.B.A., C.A.,
Director of Finance/Treasurer
• I
MM\JDB\bh
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
4,0 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C•3A6 T 905-623-3379
REPORT NO.: COD-013.11 PAGE 2
1.0 BACKGROUND AND COMMENT
1.1. Tender specifications were provided by AECOM for the 2011 High Float
Resurfacing as required by the Operations Department.
.1.2. Tenders were publicly advertised in the local paper as well as electronically.
Subsequently, three tenders were received and tabulated as per Schedule "A"
attached..
1.3 The term for the contract is one year with an option to extend the contract for a
second and third year. Contract renewal is dependent upon satisfactory
performance and pricing.
2.0 ANALYSIS
i
2.1 After further review and analysis of the bids by the Operations Department,
AECOM and Purchasing, it was mutually agreed that the low bidder, Miller
Paving Limited, Gormley, Ontario, be recommended for the contract for the 2011
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 quoted for this
project represents an approximate 14% increase over the 2008 bid.
2.4 Queries with respect to the department needs, specifications, etc. should be
referred to the Director of Operations.
I
REPORT NO.: COD-013-11 PAGE 3
3.0 FINANCIAL
3.1 The total project cost of$1,216,797.59 (net of H.S.T. Rebate) is within the 2011
Capital Budget plus the carry over of unspent contingencies from 2010 will be
drawn from the Department of Operations, Rural Road Resurfacing Account
#110-36-330-83680-7401.
4.0 CONCLUSION
4.1 That the low compliant bidder, Miller Paving Limited, Gormley, Ontario, be
recommended for the contract for the 2011 High Float Resurfacing project.
5.0 INPUT FROM OTHER SOURCES
5.1 This report has been reviewed by the Purchasing Manager, with the appropriate
department and circulated as follows:
Concurrence: Director of Operations
Attachments:
Schedule "A", Bid Summary
Schedule "B", Recommendation Letter from AECOM
i
Ua n n on,
REPORT
. gt
CORPORATE SERVICES DEPARTMENT
Schedule "A"
Bid Summary
Tender CL2011-12
BIDDEN TOTAL BID TOTa►L BIDr L
' ' ` � s(HSTY Inchuded) � (net of HST Debate •
Miller Paving Limited $1,174,956.65 $1,058,084.86
•Gormley, ON
Royel Paving Limited $1,306.762.18 . $1,176,779.82
Lindsay, ON
Duncor Enterprises $1,594,587.70* $1,435,975.62
Barrie, ON
*corrected total
\ SCHEDULE"B"
,�.^/1 AECOM 905 372 2121 tel
A�CO M
�'1 613 Divialon Street 905 372 3621 fax
Cobourg,Ontario K9A 506
www.aecom,00m
May 3, 2011 (Revision 2) "
Mr, F. Horvath-
Director of Operations
The Municipality of Clarington
40 Temperance Street .
BOWMANVIL•LE,ON L1C 3A6
Dear Sir:
Project No: 60212314-2
Regarding: 2011 High Float Resurfacing Tender
Contract No.CL2011-12
Municipality of Clarington
Tenders for the'above project were opened at the Clarington Municipal Offices on Tuesday,April 26,
2011. A fist of the bids received is provided In the-table below, All numbers are exclusive of HST,
_.j'•f:' "t+'y'd1pF. .". _,=, =•,!;-shT�4i? lCt::*'j'.4.`:'ii;.a;.-�.n, ';�,•y
�TOTAI�BID TOTAL BIt� t
r
> �; �` , , a • Y�� } 4"(H T InclOde,d {Net of iiST Rebate
Miller Paving Limited $1,174,956,65 $1,058,084:86
Gormle ' ON
Royel Paving Limited $1,306,762,18 $1,176,779.82
Lindsay, ON
Duncor Enterprises $1,594,587,70** $1,435,975.62
Barrie;ON
**Corrected Total
The Municipality of Ciarington's Purchasing Department reviewed all bids. AECOM Canada Ltd. has
reviewed all bids accepted by the Purchasing Department and confirmed the bid values noted above, .
The total amount entered in the bid from Duncor Enterprises contained a minor summation error of
$19,94 and the amount shown above represents the corrected total bid. This'corrected total did not
change the order of the bids. The bid submitted by Miller Paving Limited is the lowest bid and there
were no mathematical errors noted in their submission,
The bid bond provided by Royel Paving Limited was for$50;000.00 but the tender documents require
the bid bond.to be$100,000.00 for tenders In the range of$1,000,000.01 to$2,000,000.00. The bid
bonds for Miller Paving Limited and Duncor Enterprises were in the correct amount.
This project was tendered for the 2011 construction year with an option to extend into 2012 and 2013,
subject to satisfactory performance and pricing.
Tendor Report letterCOnlretl CL2011.12(ReAsion 2).00ax
f
' i
SCHEDULE'B"
A:CQM
Miller Paving Limited has been successfully providing services requested in the tender documents to .
the Municipality of•Clarington for the past four years.
The total budget for this project is$1,222,300.00, composed of$1,160,000.00 from the 2011 program
and approximately$62,300.00 carried forward from the 2010 program. The'-low bid from Miller .
Paving Limited is within the project budget when costs for administration, inspection, testing, and
contingencies are factored in,and allowing.for•the net HST commitment of 1.76°/x, '
The estimated costs for various project components, based on the low bid, are summarized in the
table below,
Project Costs:
Miller Paving Ltd, Bid $1,039,784.65
Tender Prep/Administration/ $62,387,08
Inspection 6.0%
Materials Testing(1.5%) $15,596.77
Contingencies(7.5%) $77,983.85
Total Casts Excluding HST $1,195,752,35
Net 1.76%HST $21,045.24
Total Project Costs with Net HST $1,216,797.59
2011 Budget $1,160,000,00
2010 Approx. Carry Over $62,300.00
Total Adjusted Available Budget $1,222,300.00
Budget Balance $5,502.41
Based on performance on their previous work In Clarington, in our opinion, the tender.in the amount
of$1,039,784.65(exclusive of HST)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.
Doug Timms, P. Eng,
Senior Project Manager
doug,timms @aecom.com
DT:hm
Encl.
cc:
Tender Ropod LeUer000040 CLMI.12(Ravieion 2),000x