September 22, 1999

To:Works Committee

From:Commissioner of Works and Emergency Services

Subject:Engagement of Professional Services to Undertake the Preliminary Design of a Process Control System for the Water Transmission System

 Purpose:

To present the results of the request for proposals for the selection of professional services to carry out the preliminary design of a process control system for the Water Transmission System, and to obtain approval to award the assignment to Simcoe Engineering Group Ltd.

Funding Sources, Financial Implications and Impact Statement:

During the meeting of March 2, 3 and 4, 1999, City of Toronto Council adopted Clause No. 1 of Report No. 3 of the Strategic Priorities and Planning Committee approving the 1999-2003 Capital Budget and Five-Year Capital Programs. This contained funding for various projects in the Works Best Practices Program including the preliminary design of a process control system for the Water Transmission system. These funds are available in the Water and Wastewater Services Division, Water Supply Section Account Number C-WS026.

Recommendations:

It is recommended that:

(1)the assignment for the preliminary design of the Water Transmission Process Control System be awarded to the firm of Simcoe Engineering Group Ltd. at a cost not to exceed $545,000.00 including Goods and Services Tax (GST) and a contingency allowance of $55,000.00 including GST to cover potential additional engineering work required, if necessary, and as authorized by the Commissioner of Works and Emergency Services; and

(2)the appropriate City officials be authorized to take the necessary actions to give effect thereto.

Council Reference/Background/History:

On July 2 and 3, 1997, the former Metropolitan Council adopted Clause No. 3 of Report No. 13 of the Financial Priorities Committee authorizing the implementation of the Works Best Practices Program (WBPP) in the Works Department.

On October 28, 1998, Toronto City Council through adoption of Clause No. 14 of Report No. 18 of the Strategic Policies and Priorities Committee endorsed the continuance of the Works Best Practices Program and authorized funds required to continue implementation of the program.

The WBPP is a process control and operations technology, information technology and optimization program integrating redesign of key business practices. A major component of this program is the replacement of aging process control systems within the four water treatment plants, and the transmission system in the Water Supply Section.

The Water Supply transmission system is an integrated network comprised of treated water pumps at four water treatment plants, 18 pumping stations, 10 major underground reservoirs, four elevated tanks and 487 kilometres of water main ranging in size up to 2250 millimetres in diameter. This infrastructure is geographically located throughout the City of Toronto and in York Region. The overall monitoring and control of the Water Supply transmission system is provided from one central pumping control facility. From this location, remote control of pumps, continuous monitoring of pressures, flows, and levels takes place, enabling supply of water at sufficient pressure and flow to all residents of the City of Toronto, and by agreement to York Region. Furthermore, overall water supply building security is monitored from this location.

Replacement of the existing system installed in the mid 1980's, is required due to its age and as an integral part of the WBPP. The new system using state-of-the-art equipment and technology will provide significant improvements to water transmission monitoring, controlling, reporting and data logging capabilities. It will also improve system efficiency and reliability and in turn reduce operating costs through reduced hydro consumption and staff required for system operations. Centralized monitoring of building heating and ventilating systems, alarm systems, and machinery will provide enhanced protection of assets and equipment.

Considering the need for and benefits of the new process control system and the overall project schedule, the preliminary design must be undertaken at this time.

Comments and/or Discussion and/or Justification:

The Terms of Reference to undertake this work were issued to several companies on March 9, 1999. On April 9, 1999, Works and Emergency Services received proposals, including separate sealed cost proposals, from Proctor and Redfern Ltd. and Simcoe Engineering Group Ltd., for the preliminary design of the water transmission process control system.

The proposals were reviewed by a staff selection committee comprised of staff from Water Supply and Technical Services based on a predetermined selection process of evaluating the proposals against specified criteria. The details of the selection process are outlined in Appendix A. Following detailed review of the technical aspects of the submissions, only one firm qualified for further consideration and the price envelope was opened.

An interview was held with the firm in order to clarify and finalize the specific scope of work required and the related costs involved. These costs were assessed to confirm they were fair and reasonable. Further dialogue and communication took place after the interview. As indicated in Appendix 'A', the staff selection committe concluded that the proposal by Simcoe Engineering Group Ltd. satisfied the overall project requirements at a reasonable cost.

Conclusions:

A thorough selection procedure has been followed consistent with Corporate practices.

It is recommended that Simcoe Engineering Group Ltd. be awarded the assignment to undertake the preliminary design of the water transmission system.

Contact Name:

Hiroshi Taniguchi

Director, Water Supply

Phone: (416) 392-8220

Fax: (416) 392-3639

E-mail: htaniguchi@metrodesk.metrotor.on.ca

Michael A. Price, P.Eng., FICE

General Manager, Water and Wastewater Services

Barry H. Gutteridge

Commissioner, Works and Emergency Services

LBL/rah

Attach.

APPENDIX 'A'

WATER TRANSMISSION, PROCESS CONTROL SYSTEM PRELIMINARY DESIGN

Details of the Professional Services Process

(1)A two-stage process was undertaken whereby Expressions of Interest were requested first followed up by a Request for Proposals from the short-listed proponents.

(2)Twelve firms with experience in similar work were chosen from a roster of qualified companies and invited to submit Expressions of Interest. One firm declined to submit proposals. Of the remaining 11 firms, four banded together to form one consortium and another three banded together to form a second consortium such that six responses were submitted in total. The responses were evaluated according to a set of pre-established criteria by representatives from the Water and Wastewater Services and Technical Services Divisions of the Works and Emergency Services Department.

(3)Using a threshold level of 75 per cent of the maximum attainable score as a criterion, evaluation of the Expressions of Interest resulted in a short list of four firms. Detailed written proposals, including separate sealed cost proposals, were requested and received from the four firms. Two firms submitted proposals for the preliminary design of a process control system for the water transmission system.

(4)A formal staff selection committee was struck to evaluate the detailed proposals. As with the Expression of Interest, the committee was comprised of representatives from the Water and Wastewater Services and Technical Services Divisions of the Department.

(5)The technical submissions were reviewed first independently and then jointly by members of the selection committee, and were evaluated according to a set of pre-established criteria. Once again, a threshold level of 75 per cent of the maximum attainable score had been previously established as the criterion for the next step which was a review of the separately submitted sealed cost proposals.

(6)Accordingly, only one firm qualified for further consideration and its cost proposal was reviewed.

(7)The firm was then interviewed in order to clarify and finalize the specific scope of work required and the related costs involved. Further dialogue and communication took place after the interview and the proponent was requested to provide written clarification to proposal items as required.

(8)On completion of all of the above, the selection committee concluded that the proposal submitted satisfied the overall project requirements at a reasonable cost by demonstrating an appropriate level of effort to properly address the critical elements of the work.

(9)It was recommended that the preliminary design of a process control system for the water transmission system be awarded to Simcoe Engineering Group Ltd.