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Corporate Services
Report
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Report To: Council
Date of Meeting: December 11, 2017
Report Number: COD -022-17 Resolution: #C-342-17
File Number: CL2017-43 By-law Number:
Report Subject: Municipal Administrative Centre - 2nd Floor Alterations
Recommendations:
1. That Report COD -022-17 be received;
2. That Gallant Construction Ltd. with a revised total bid amount of $465,000.46 (Net
HST Rebate) being the lowest compliant bidder meeting all terms, conditions and
specifications of Tender CL2017-43 be awarded the contract for the Municipal
Administrative Centre 2nd Floor Alterations as required by the Operations
Department;
3. That the funds required for this project in the amount of $515,000.46 (Net HST
Rebate) which includes construction cost and contingencies be funded by the
Municipality as follows:
MAC Renovations (2016) 110-36-370-83679-7401 $379,500.00
MAC Improvement (2017) 110-36-370-83601-7401 $61,997.28
4. That the shortfall be funded from General Capital Reserve in the amount of
$73,503.18 (Net HST Rebate)
General Capital Reserve 100-00-000-00000-2917 $73,503.18
5. That all interested parties listed in Report COD -022-17 and any delegations be
advised of Council's decision regarding the award by the Corporate Services
Department.
Municipality of Clarington
Resort COD -022-17
Report Overview
Paae 2
To request authorization from Council to award the contract for the Municipal Administrative
Centre 2nd Floor Alterations as required by the Municipality of Clarington's Operations
Department.
1. Background
Tender specifications were prepared by Nick Swerdfeger Architects Inc. and provided by
the Operations Department for the Municipal Administrative Centre 2nd Floor Alterations.
Tender CL2017-43 was issued by the Purchasing Services Division and advertised
electronically on the Municipality's website. Notification of the availability of the document
was also posted on the Ontario Public Buyer's Association website. Thirty-eight (38)
companies downloaded the document.
The tender closed on Friday, November 10, 2017.
2. Analysis
Seven (7) bids were received in response to the tender call. Bids were reviewed and
tabulated by the Purchasing Services Division (see Attachment 1). All submissions were
deemed compliant.
All Bids received exceeded the approved budget amount of $441,497.28.
After review and analysis of the submissions by the Consultant, the Operations Department
and the Purchasing Services Division, it was mutually agreed that the Municipality would
exercise its right to negotiate with the low compliant bidder, Gallant Construction Ltd. to try
to reduce the overall costs.
This negotiation resulted in a savings of $39,686.40 (Net HST Rebate) which was achieved
by reducing the cash allowance along with some minor scope changes. These
negotiations resulted in the original bid amount of $504,686.86 (Net HST Rebate) being
reduced to $465,000.46 (Net HST Rebate).
Gallant Construction Ltd. has successfully completed work for the Municipality in the past.
Municipality of Clarington
Resort COD -022-17
3. Financial
Paae 3
The funding required for this projects is $515,000.46 (Net HST Rebate) which includes the
revised construction cost of $465,000.46 and contingencies of $50,000.00. The approved
budget for this project was $441,497.28 thereby leaving a shortfall of $73,503.18 (Net HST
Rebate). It is being requested that the shortfall be funded from the General Capital
Reserve Account 100-00-000-00000-2917. If approved the project will be funded by the
Municipality as follows:
MAC Renovations (2016)
MAC Improvement (2017)
General Capital Reserve
4. Concurrence
110-36-370-83679-7401
$379,500.00
110-36-370-83601-7401
$61,997.28
100-00-000-00000-2917
$73,503.18
This report has been reviewed by the Director of Operations who concurs with the
recommendations.
5. Conclusion
It is respectfully recommended that Gallant Construction Ltd. being the lowest compliant bid
be awarded the contract for the Municipal Administrative Centre 2nd Floor Alterations in the
revised bid amount of $465,000.46 (Net HST Rebate) as per the terms and conditions of
Tender CL2017-43.
6. Strategic Plan Application
The recommendations contained in this report conform to the Strategic Plan.
Submitted by:
Marie Marano, H.B. Sc., C.M.O.,
Director of Corporate Services
Nancy Ta or, A, CPA, CA.,
Director of Finance/Treasurer
Reviewed by:
Andrew C. Allison, B. Comm, LL.B
CAO
Staff Contact: David Ferguson, Purchasing Manager, x2209 or dferguson@clarington.net
List of interested parties to be notified of Council's decision is on file in the Corporate Services
Department.
Municipality of Clarington
Attachment 1 to
Report COD -022-17
CL2017-43 Municipal Administrative Centre 2nd Floor Renovations
Bid Summary
BIDDER
TOTAL BID
(Including HST)
TOTAL BID
(Net HST Rebate)
Gallant Construction Ltd.
$560,432.54
$504,686.86
J.0 Kneider and Associates
Ltd.
$563,870.00
$507,782.40
North America General
Contractor Ltd.
$590,013.68
$531,325.59
Cambria Design Build Ltd.
$628,551.20
$566,029.82
Trustco Construction Ltd.
$644,100.00
$580,032.00
Portfolio Contracting Inc.
$705,183.14
$635,039.26
Koler Construction Ltd.
$728,462.69
$656,003.22