September 23, 1998

TO:Works & Utilities Committee

FROM:Commissioner of Works and Emergency Services

Chief Financial Officer and Treasurer

SUBJECT:Installation of Four Sludge

Dewatering Centrifuges at the

Main Treatment Plant

Contract MW9803WP

Ward: East Toronto

Purpose:

The purpose of this report is to award Contract MW9803WP for installation of four sludge dewatering centrifuges and process related equipment at the Main Treatment Plant in accordance with specifications as required by the Works and Emergency Services Department and to request the authorization to issue a contract to the recommended bidder.

Funding Sources:

Funds are available in the appropriate account for this project.

Recommendation:

It is recommended that Contract MW9803WP for the installation of four sludge dewatering centrifuges and process related equipment at the Main Treatment Plant be awarded to the lowest acceptable base tenderer, W.A. Stephenson Mechanical Contractors Limited, for the Total Lump Sum Price of $4,965,000.00 including all taxes and charges.

Background:

On September 9, 1998, the Bid Committee opened the following tenders for Contract MW9803WP for the installation of four sludge dewatering centrifuges and process related equipment at the Main Treatment Plant:

Comments, Discussion and Justification:

The tender submitted by the second lowest tenderer, Ram Mechanical Contractors Limited (Ram), offered five (5) credits totalling an amount of $110,000.00 in potential savings to the tendered lump sum price, which, if accepted wholly by the City, would alter the ranking of the tenderers, making Ram the lowest bidder.

Ram provided, with the tender, minimal information, simply indicating the equipment item, the supplier's name, and the corresponding credit that would be given. The information provided at the time of tender closing was insufficient to perform a proper evaluation on the acceptance of the alternates. In discussions with Ram by staff of the Works and Emergency Services Department, Ram advised that it was their intent to further discuss and provide general information and technical data on the five (5) alternates proposed after tender submission.

The contract specifications require the tenderer to submit detailed information on any proposed equivalent equipment or material together with any price savings at the time of tendering. In the absence of these details, we are unable to evaluate the acceptability of the alternatives in the form submitted. To evaluate and accept Ram's alternatives based on detailed information submitted after the bids are opened would, in effect, give Ram an unfair advantage by providing Ram with the opportunity to make specification changes to the alternatives in order to obtain a favourable recommendation and thereby overtake the otherwise low bidder in full knowledge of its relevant ranking to the other Tenderers. Accordingly, it is recommended that Ram's alternatives not be considered so that there will be no impact on the ranking for contract award. The City Solicitor advises that such a course of action would be legally unobjectionable.

Representatives of the Works and Emergency Services Department and our consultants have reviewed the tender submitted by W.A. Stephenson Mechanical Contractors Limited (Stephenson), and discussed the tender with them. Staff of the Department is satisfied that this company fully understands the contractual requirements, and has the capability to carry out the work as specified. Stephenson has successfully carried out work for this Department in the past.

Stephenson has offered a credit alternative of $20,000.00 which does not impact on the ranking of the bidders. Accordingly, the credit will be reviewed in detail following award of contract and if found acceptable will reduce the tendered Lump Sum Price of the contract.

In order to accommodate the existing quantity of sludge treated at the Main Treatment Plant, and to facilitate ongoing maintenance requirements of the dewatering centrifuges, it has been determined that four additional centrifuges are needed, bringing the total installed to 12 machines.

Accordingly, at its meeting of August 13, 1997, by adoption of Clause No. 4 of Report No. 11 of the Environment and Public Space Committee, Metro Council awarded Contract WPC-3-97 in the amount of $3,928,610.00 for the supply of four high efficiency sludge dewatering centrifuges. These units have been delivered and are currently in storage awaiting to be installed under this current installation contract. The present contract MW9803WP includes the construction of necessary building modifications, installation of the equipment to be furnished under Contract WPC-3-97, and the supply and installation of related sludge pumping, sludge transfer, and auxiliary equipment necessary to achieve the aforementioned sludge dewatering firm capacity.

The Manager, Fair Wage and Labour Trades Office, has reported favourably on the firm recommended.

Conclusion:

This report requests authority to issue a contract for installation of four sludge dewatering centrifuges and related sludge pumping, transfer and auxiliary equipment at the Main Treatment Plant in accordance with specifications to W.A. Stephenson Mechanical Contractors Limited, being the lowest acceptable base tender received.

Contact Name:Contact Name:

Mr. P.A. Bradley, P.Eng., Mr. L.A. Pagano

Senior Project Engineer, Technical Services Division Director

Telephone No.: (416) 392-8251Purchasing and Materials

Management

Telephone No.: (416) 392-7312

T.G. Denes, P.Eng.

Executive Director of Technical Services

B.H. GutteridgeW.A. Liczyk

Commissioner of Works and Emergency ServicesChief Financial Officer

and Treasurer

PAB/ph 1001.20-138

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