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Bid Award Panel · 2023-03-15 · 2023.BA18.3

The filed record

Award of Ariba Document Number 3585949674 to OJCR Construction Ltd. for Service Area A for General Sewer and Watermain Construction Related Activities for Residential Service Connections (Part A) and for New Industrial, Commercial and Institutional (Part B) for Toronto Water

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The decision

2023-03-15 · Bid Award Panel · adopted

As filed

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 (March 9, 2023) from the Chief Procurement Officer: Solicitation Number: Negotiated Request for Proposal, Ariba Document Number 3585949674, Service Area A, Contract Number 22TW-DC-303OCS (Part A) and Contract Number 22TW-DC-308OCS (Part B) Description: General

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Sewer and Watermain Construction Related Activities for Residential Water and Sewer Service Connections (Part A, Contract Number 22TW-DC-303OCS) and New Industrial, Commercial, and Institutional (ICI) (Part B, Contract Number 22TW-DC-308OCS) for Toronto and East York Districts for Service Area A Wards: 4, 9, 11 and 12 from date of award to February 29, 2024, with the option to extend the Contract for two (2) additional one (1) year period at the sole discretion of the City and subject to budget approval. Should the option period(s) 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 Supplier: OJCR Construction Ltd. Contract Award Value: Part A - OJCR Construction Ltd. $2,148,646 net of all applicable taxes and charges $2,427,970 including all applicable taxes and charges $2,186,462 net of HST recoveries Contract is expected to start on the date of award to February 29, 2024. Option Period 1 (March 1, 2024 to February 28, 2025) $2,213,105 net of all applicable taxes and charges $2,500,809 including all applicable taxes and charges $2,252,056 net of HST recoveries Option Period 2 (March 1, 2025 to February 28, 2026) $2,279,498 net of all applicable taxes and charges $2,575,833 including all applicable taxes and charges $2,319,618 net of HST recoveries The total contract award for OJCR Construction Ltd. including all option periods is $6,641,250 net of all applicable taxes and charges and $7,504,612 including all applicable taxes and charges. The total potential cost to the City including the option period for OJCR Construction Ltd. is $6,758,136 net of HST recoveries. Part B - OJCR Construction Ltd. $3,505,250 net of all applicable taxes and charges $3,960,932 including all applicable taxes and charges $3,566,942 net of HST recoveries Contract is expected to start on the date of award to February 29, 2024. Option Period 1 (March 1, 2024 to February 28, 2025) $3,610,407 net of all applicable taxes and charges $4,079,760 including all applicable taxes and charges $3,673,951 net of HST recoveries Option Period 2 (March 1, 2025 to February 28, 2026) $3,718,720 net of all applicable taxes and charges $4,202,153 including all applicable taxes and charges $3,784,169 net of HST recoveries The total contract award for OJCR Construction Ltd. including all option periods is $10,834,377 net of all applicable taxes and charges and $12,242,846 including all applicable taxes and charges. The total potential cost to the City including the option period for OJCR Construction Ltd. is $11,025,062 net of HST recoveries. The total potential contact award including all option period is $17,475,627 net of all taxes and charges and $19,747,459 including all applicable taxes and charges. The total potential cost to the City including the option period for both parts is $17,783,198 net of HST recoveries. The above cost calculations reflect an estimated three (3) percent Consumer Price Index increase applied annually to the yearly cost after the initial year.

On the agenda

As the city filed it

Solicitation Issued: July 18, 2022 Solicitation Closed: August 17, 2022 Number of Addenda Issued: Two (2) Number of Bids: Six (6) Table 2: Summary of Bids Received Supplier Name 614128 Ontario Ltd. o/a Trisan Construction Clearway Construction Inc. N.S.J. Waterworx Group Ltd. OJCR Construction Ltd.* Rabcon Contractors Ltd. Utility Force Construction Inc. *Pursuant to the Request for Proposal document, the contract award value includes contingency.

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Range of Scores: 44-100 points based on Price Proposal value. To score the Price Proposal the City used the following formula: Proponent's score (PS) is the lowest price (LP) divided by proponent's price (PP) times 100, i.e., PS=LP/PP x 100. The City used the two-envelope system for this Negotiated Request for Proposal. Prior to opening the Price Proposals all proponents had been evaluated based on their relevant experience, past performance and assigned personnel capability to deliver the work. Those who passed the minimum score of 70 out of 100 were admitted the Price Proposal evaluation stage.

Staff recommended

The Chief Procurement Officer recommends that the Bid Award Panel grant authority to award the following contract: Solicitation Number: Negotiated Request for Proposal, Ariba Document Number 3585949674, Service Area A, Contract Number 22TW-DC-303OCS (Part A) and Contract Number 22TW-DC-308OCS (Part B) Description: General Sewer and Watermain Construction Related Activities for Residential Water and Sewer Service Connections

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(Part A, Contract Number 22TW-DC-303OCS) and New Industrial, Commercial, and Institutional (ICI) (Part B, Contract Number 22TW-DC-308OCS) for Toronto and East York Districts for Service Area A Wards: 4, 9, 11 and 12 from date of award to February 29, 2024, with the option to extend the Contract for two (2) additional one (1) year period at the sole discretion of the City and subject to budget approval. Should the option period(s) 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 Supplier: OJCR Construction Ltd. Contract Award Value: Part A - OJCR Construction Ltd. $2,148,646 net of all applicable taxes and charges $2,427,970 including all applicable taxes and charges $2,186,462 net of HST recoveries Contract is expected to start on the date of award to February 29, 2024. Option Period 1 (March 1, 2024 to February 28, 2025) $2,213,105 net of all applicable taxes and charges $2,500,809 including all applicable taxes and charges $2,252,056 net of HST recoveries Option Period 2 (March 1, 2025 to February 28, 2026) $2,279,498 net of all applicable taxes and charges $2,575,833 including all applicable taxes and charges $2,319,618 net of HST recoveries The total contract award for OJCR Construction Ltd. including all option periods is $6,641,250 net of all applicable taxes and charges and $7,504,612 including all applicable taxes and charges. The total potential cost to the City including the option period for OJCR Construction Ltd. is $6,758,136 net of HST recoveries. Part B - OJCR Construction Ltd. $3,505,250 net of all applicable taxes and charges $3,960,932 including all applicable taxes and charges $3,566,942 net of HST recoveries Contract is expected to start on the date of award to February 29, 2024. Option Period 1 (March 1, 2024 to February 28, 2025) $3,610,407 net of all applicable taxes and charges $4,079,760 including all applicable taxes and charges $3,673,951 net of HST recoveries Option Period 2 (March 1, 2025 to February 28, 2026) $3,718,720 net of all applicable taxes and charges $4,202,153 including all applicable taxes and charges $3,784,169 net of HST recoveries The total contract award for OJCR Construction Ltd. including all option periods is $10,834,377 net of all applicable taxes and charges and $12,242,846 including all applicable taxes and charges. The total potential cost to the City including the option period for OJCR Construction Ltd. is $11,025,062 net of HST recoveries. The total potential contact award including all option period is $17,475,627 net of all taxes and charges and $19,747,459 including all applicable taxes and charges. The total potential cost to the City including the option period for both parts is $17,783,198 net of HST recoveries. The above cost calculations reflect an estimated three (3) percent Consumer Price Index increase applied annually to the yearly cost after the initial year.

    On the record

    The item as the City filed it

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