Non-Competitive Contract with Sanscon Construction Ltd., for Construction Services for Watermain and Water Service Replacement on O'Connor Drive

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The decision

2023-10-11 · Toronto City Council · amended

As filed

City Council on October 11 and 12, 2023, adopted the following: 1. City Council authorize the Chief Engineer and Executive Director, Engineering and Construction Services, to negotiate and enter into a non-competitive contract with Sanscon Construction Ltd., to replace the existing 300-millimetre watermain and related infrastructure on O'Connor Drive, between Sandra Road and Bermondsey Road, in the amount of $5,500,000 net of all taxes and charges ($5,596,800 net of Harmonized Sales Tax recoveries), on terms and conditions satisfactory to the Chief Engineer and Executive Director, Engineering and Construction Services, and in a form satisfactory to the City Solicitor.

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2. City Council direct the Chief Engineer and Executive Director, Engineering and Construction Services, in consultation with the General Manager, Transportation Services, to report back to the Toronto and East York Community Council meeting on November 15, 2023, with an updated traffic management plan for the Watermain and Water Service Replacement project between Sandra Road and Bermondsey Road, in an effort to reduce traffic impacts on local residents, businesses and commuters.

On the agenda

As the city filed it

The purpose of this report is to seek City Council authority to enter into a non-competitive contract with Sanscon Construction Ltd., for the replacement of the existing 300-millimetre cast iron watermain on O'Connor Drive between Sandra Road and Bermondsey Road in the estimated amount of $5,500,000 net of all taxes and charges ($5,596,800 net of Harmonized Sales Tax recoveries). The total estimated cost of $5,500,000 net of all taxes and charges ($5,596,800 net of Harmonized Sales Tax recoveries) will be funded by Toronto Water.

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A non-competitive contract is necessary to enable an accelerated replacement of the existing watermain and water services on O'Connor Drive, given that the new green infrastructure under the current Contract 20ECS-LU-03FP is planned to be constructed directly above the existing watermain. This new green infrastructure could be damaged in the event of future watermain breaks and this damage likely would not be covered by the construction contract warranty. City Council approval is required in accordance with Municipal Code Chapter 195, Purchasing, where the current request exceeds the Chief Purchasing Officer's authority of the cumulative five-year commitment for each Supplier, 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 71-11A.

Staff recommended

The Chief Engineer and Executive Director, Engineering and Construction Services, and the Chief Procurement Officer, recommend that: 1. City Council grant authority to the Chief Engineer and Executive Director, to negotiate and enter into a non-competitive contract with Sanscon Construction Ltd., to replace the existing 300-millimetre watermain and related infrastructure on O'Connor Drive, between Sandra Road and Bermondsey

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Road, in the amount of $5,500,000 net of all taxes and charges ($5,596,800 net of Harmonized Sales Tax recoveries), on terms and conditions satisfactory to the Chief Engineer and Executive Director, Engineering and Construction Services, and in a form satisfactory to the City Solicitor.

Considered

2023-10-02 · General Government Committee · adopted
Decision as filed
The General Government Committee recommend that: 1. City Council grant authority to the Chief Engineer and Executive Director, to negotiate and enter into a non-competitive contract with Sanscon Construction Ltd., to replace the existing 300-millimetre watermain and related infrastructure on O'Connor Drive, between Sandra Road and Bermondsey Road, in the amount of $5,500,000 net of all taxes and charges ($5,596,800 net
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of Harmonized Sales Tax recoveries), on terms and conditions satisfactory to the Chief Engineer and Executive Director, Engineering and Construction Services, and in a form satisfactory to the City Solicitor.
2023-10-11 · Toronto City Council · amended

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