Item - 2024.BA88.8

The Bid Award Panel adopted the following:

1. Bid Award Panel grant authority to award the contract in accordance with the Contract Details set out in the report (July 11, 2024) from the Chief Procurement Officer:

Solicitation Number:

Request for Tender Document Number 4564680301, Contract Number 24TW-DC-303OCS (Service Area 1) and 24TW-DC-304OCS (Service Area 2)

Description:

Repair of Sewer Systems and Appurtenances for Various Locations within the City of Toronto for Toronto Water – Service Area A for Toronto, East York and Scarborough Districts (24TW-DC-303OCS) and Service Area B for North York and Etobicoke Districts (24TW-DC-304OCS) from date of award to June 30, 2025, with the option to extend the agreement for up to one (1) additional separate one (1) year period at the sole discretion of the City and subject to budget approval.

Should the option periods be exercised, the General Manager of Toronto Water will request the Chief Procurement Officer to process the renewal under the same terms and conditions.

Recommended Suppliers:

Service Area 1

Utility Force Construction Inc.

Service Area 2

OJCR Construction Ltd.

Contract Award Value:

Service Area 1 – Utility Force Construction Inc.

$6,240,360 net of all applicable taxes and charges

$7,051,607 including all applicable taxes and charges  

$6,350,190 net of HST recoveries                    

Contract is expected to start on date of award and end June 30, 2025.

Option Period 1 (July 1, 2025 to June 30, 2026)

$6,427,571 net of all applicable taxes and charges

$7,263,155 including all applicable taxes and charges  

$6,540,696 net of HST recoveries

The total potential contract award including all option periods for Utility Construction Inc. is $12,667,931 net of all taxes and charges and $14,314,762 including all applicable taxes and charges. The total potential cost to the City for Utility Force Construction Inc. including all option periods is $12,890,886 net of HST recoveries.

Service Area 2 – OJCR Construction Ltd.

$5,724,120 net of all applicable taxes and charges

$6,468,256 including all applicable taxes and charges  

$5,824,865 net of HST recoveries                    

Contract is expected to start on date of award and end June 30, 2025.

Option Period 1 (July 1, 2025 to June 30, 2026)

$5,895,844 net of all applicable taxes and charges

$6,662,303 including all applicable taxes and charges  

$5,999,611 net of HST recoveries

The total potential contract award including all option periods for OJCR Construction Ltd. is $11,619,964 net of all taxes and charges and $13,130,559 including all applicable taxes and charges. The total potential cost to the City for OJCR Construction Ltd. including all option periods is $11,824,476 net of HST recoveries.

The combined total potential contract award including option period is $24,287,894 net of all taxes and charges and $27,445,321 including all applicable taxes and charges. The total potential cost to the City including all option periods for all awards is $24,715,361 net of HST recoveries.

The above cost calculations reflect an estimated three (3) percent Consumer Price Index (CPI) adjustment applied annually to the yearly cost after the initial term.

Solicitation Issued: May 10, 2024         Solicitation Closed: June 6, 2024

Number of Addenda Issued: None

Number of Bids: 7 (seven)

Table 2: Summary of Bids received including bid price (Service Area 1):

*Pursuant to the Request for Tender document the contract award value includes contingency.

Table 3: Summary of Bids received including bid price (Service Area 2):

*Pursuant to the Request for Tender document the contract award value includes contingency and no one Supplier will be awarded both parts.