Item - 2023.GG7.13

The General Government Committee:

1. In accordance with Section 195-8.4A of Toronto Municipal Code Chapter 195 (Purchasing By-Law), authorized the Chief Engineer and Executive Director, Engineering and Construction Services to negotiate and enter into an agreement with Grascan Construction Limited, being the highest scoring pre-qualified supplier, to provide Design and Construction Services for construction of the F.G. Gardiner Expressway Rehabilitation Project: Section 2 – Dufferin Street to Strachan Avenue in the amount of $300,250,000 net of all taxes and charges ($305,534,400 net of Harmonized Sales Tax recoveries). The award amount includes a contingency allowance of $40,000,000 net of all taxes and charges ($40,704,000 net of Harmonized Sales Tax recoveries).

The General Government Committee:

1. Requested the Chief Engineer and Executive Director, Engineering and Construction Services receive weekly reports from the City’s project manager on the progress of the F.G. Gardiner Expressway Rehabilitation Project: Section 2 – Dufferin Street to Strachan Avenue, to confirm the project is proceeding as scheduled, that the project is on track to meet key milestones and to help ensure that the project meets the targeted completion timeline of mid-2027.

The purpose of this report is to advise of the results of Request for Proposals RFP-22ECS-BE-01GE, Contract Number 22ECS-BE-01GE for the rehabilitation of the F.G. Gardiner Expressway between Dufferin Street and Strachan Avenue ("Gardiner Section 2") and request the authority to enter into an agreement with Grascan Construction Limited in the amount of $260,250,000 net of all taxes and charges ($264,830,400 net of Harmonized Sales Tax recoveries). An additional $40,000,000 net of all taxes and charges ($40,704,000 net of Harmonized Sales Tax recoveries) will be available to the Chief Engineer and Executive Director, Engineering and Construction Services for the Project as may be required.

The F.G. Gardiner Expressway has been in service for over 60 years and with the effects of weathering, salt, and increasing traffic loads, is approaching the end of its original design life. To address this state-of-good-repair challenge, a Strategic Rehabilitation Plan, consisting of six complex projects, was adopted by City Council in December 2016. Section 1 construction work was completed in 2021.

The subject of this report is the selection of the contractor for Section 2, to rehabilitate the elevated section of the Expressway between Dufferin Street and Strachan Avenue. There is an urgent need to award this contract because this section is in poor condition and at the end of its design life.

The scope of work for Gardiner Section 2 involves replacing 700 metres of concrete deck and girders, rehabilitating the associated substructure, and installing new street lighting. Construction is planned to commence in late 2023 and is anticipated to be completed by mid-2027.

There are a number of complexities to this project as this is both an elevated and very narrow section of the Expressway that is expected to manage a high volume of traffic. This will necessitate a significant amount of work being done from the underneath of the roadway. It also severely limits the construction staging and work zone areas.

There are also significant complexities in relation to the need to tightly align and closely coordinate with Metrolinx Ontario Line construction at Exhibition Station along with plans for the FIFA World Cup 2026™ Soccer Tournament. For example, construction on the deck will pause from May 1 to July 31, 2026, in order to allow three lanes of traffic open in each direction to accommodate tournament traffic. Pausing a project of this magnitude and safely reopening all traffic lanes is a substantial endeavour and it will be critical to reach a certain stage of the project on time to ensure this pause can be provided.

Given the number of complexities associated with this project, several risk mitigation measures have been built in. These include processes such as the use of a Design-Build project delivery method and a two-stage procurement strategy that included consideration of the proponent's traffic and construction management strategies. Risk management is also integrated into the recommended contract, with features such as an indexing regime to manage price fluctuations for certain commodities, the use of a Third-Party Quality Assurance Firm, a full-time, onsite Technical Advisor, as well as a neutral “Referee" to address any disputes that cannot be resolved by the Project Steering Committee.