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General Government Committee · 2023-07-10 · 2023.GG5.3

The filed record

Amendment to Purchase Order No. 6054015 with Clearway Construction Incorporated for Emergency Non-Competitive Contract to Retrieve a Micro-Tunneling Boring Machine on Old Mill Drive for Assignment 5-01 Under the Basement Flooding Protection Program Phase 4 for Engineering and Construction Services

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The decision

2023-07-10 · General Government Committee · adopted

As filed

The General Government Committee: 1. In accordance with Section 195-8.4A of the Toronto Municipal Code Chapter 195 (Purchasing), granted authority to amend Purchase Order Number 6054015 with Clearway Construction Incorporated, for the provision of additional construction services to retrieve a micro-tunnelling boring machine on Old Mill Drive, by increasing the value of the Purchase Order in the amount of $16,000,000

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net of all taxes and charges ($16,281,600 net of Harmonized Sales Tax recoveries), revising the current Purchase Order value from $8,997,161 net of all taxes and charges ($9,155,511 net of Harmonized Sales Tax recoveries) to $24,997,161 net of all taxes and charges ($25,437,111 net of Harmonized Sales Tax recoveries).

On the agenda

As the city filed it

The purpose of this report is to request authority from the General Government Committee to amend Purchase Order Number 6054015 with Clearway Construction Incorporate for the Non-Competitive Contract NCP- 20ECS-LU-01FP for the provision of construction services to remove a micro-tunnelling boring machine on Old Mill Drive. The purchase order amendment is required as several challenges were encountered during the ground stabilization works causing the emergency retrieval of the micro-tunnelling boring machine to become more complicated and take longer than originally anticipated.

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Some of the challenges included additional groundwater infiltration and the need for additional ground stabilization work, resulting in the retrieval taking approximately six (6) months longer than initially anticipated, which consequently increased the cost of the project. The total value of the Purchase Order Amendment being requested is $16,000,000 net of all taxes and charges ($16,281,600 net of Harmonized Sales Tax recoveries), revising the current Purchase Order value from $8,997,161 net of all taxes and charges ($9,155,511 net of Harmonized Sales Tax recoveries) to $24,997,161 net of all taxes and charges ($25,437,111 net of Harmonized Sales Tax recoveries). The Purchase Order Amendment is based on cost estimates provided by both the contractor and consultant and represents the probable costs required to complete the emergency work. The final costs and actual payments will be based on substantiated and certified invoices. The General Management Committee approval is required in accordance with Municipal Code Chapter 195, Purchasing, where the current request exceeds the Chief Procurement Officer's authority of the cumulative five year commitment limit for each vendor under Article 7, Section 195-7.3(D) of the Purchasing By-law or exceeds the threshold of $500,000 net of Harmonized Sales Tax allowed under staff authority as per the Toronto Municipal Code Chapter 71, Financial Control, Section 71-11.1.

Staff recommended

The Interim Chief Engineer and Executive Director, Engineering and Construction Services, and the Chief Procurement Officer, Purchasing and Materials Management, recommend that: 1. General Government Committee, in accordance with Section 195-8.4A of the Toronto Municipal Code Chapter 195 (Purchasing By-Law), grant authority to amend Purchase Order Number 6054015 with Clearway Construction Incorporated, for the provision

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of additional construction services to retrieve a micro-tunnelling boring machine on Old Mill Drive, by increasing the value of the Purchase Order in the amount of $16,000,000 net of all taxes and charges ($16,281,600 net of Harmonized Sales Tax recoveries), revising the current Purchase Order value from $8,997,161 net of all taxes and charges ($9,155,511 net of Harmonized Sales Tax recoveries) to $24,997,161 net of all taxes and charges ($25,437,111 net of Harmonized Sales Tax recoveries).

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