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HomeMy WebLinkAboutOES 10-09 REPORTTO COUNCIL APICKAft.3 Report Number: OES 10-09 Date: May 19, 2009 144 From: Everett Buntsma Director, Operations & Emergency Services Subject: Information Technology (IT) Server Room - HVAC Upgrades - Pickering Civic Complex - Tender No. T-5-2009 - File: A-1440 Recommendation: 1. That Report OES 10-09 regarding Tender No. T-5-2009 for the Information Technology (IT) Server Room HVAC Upgrades, Pickering Civic Complex be received; 2. That Tender No. T-5-2009 submitted by Mack Mechanical Solutions, Inc. in the total tendered amount of $138,957.00 (GST included) be accepted; 3. That the total gross project cost of $170,457.00 (GST included) and a net project cost of $162,340.00 including the total tendered amount and other associated costs be approved; 4. That Council authorize the Director, Corporate Services & Treasurer to fund the project in the amount of $162,340.00 by, a transfer from the Federal Gas Tax Reserve Fund; and 5. That the appropriate City of Pickering officials be authorized to take necessary action to give effect thereto. i Executive Summary: This matter has been reviewed and approved previously by Council when Report OES 28-08 (copy attached) was submitted to Executive Committee on October 14, 2008. At that time, Council directed staff to proceed w th a formal tendering process for the provision of ventilation and air conditioning in the Information Technology Server Room. Bids have been received, and acceptance of the low bid submitted by Mack Mechanical Solutions Inc. is recommended. Report OES 10-09 May 11, 2009 Information Technology (IT) Server Room - HVAC Upgrades - Pickering Civic Complex - Tender No. T-5-2009 Page 2 Financial Implications: The funds originally budgeted in 2008 in the amount of $20,000.00 have been fully spent in 2008 on temporary air conditioning units, which will now be used elsewhere in the City. At this time, the City has received confirmation!. from AMO that this project is deemed eligible to be funded from the Federal Gas Tax. 1. TENDER AMOUNT T-5-2009 $110,340 Cash Allowance 22,000 GST 6,617 Sub-Total $138,957 GST Rebate (6,617) Total $132,340 2. APPROVED SOURCE OF FUNDS O & ES Capital Budget Location Project Code So4rce of Funds Budget Required Pickering Civic 5700.0903.7505 Federal Gas Tax Complex - Air Conditioning Unit FUNDS AVAILABLE $200,000 $162,340 for Information Technology Server Room 3. ESTIMATED PROJECT COSTING SUMMARY T-5-2009 5700.0903.6178 $132,340 Consultant Fees 10,000 Contingency 20.000 Total $162,340 GST 8,117 Total Gross Project Cost $170,457 GST Rebate (8,117) Total Net Project Cost 62 4 Under /Over Budget $37,660 CORP0227-07/01 revised Report OES 10-09 May 11, 2009 Subject: Information'Technology (IT) Server Room 146 - HVAC Upgrades - Pickering Civic Complex - Tender No. T-5-2009 Page 3 Sustainability Implications: At present, the internal remedial measures being used to cool the Server Room are not energy or cost effective. They are only a short term, temporary aid, not a solution. If a properly designed upgrade is constructed, the climate control will once again fall within the City's Sustainability Guidelines. Adequate ventilation and ducting will reduce the energy requirement for cooling the area thus reducing the carbon footprint. In addition, the potential loss of network time is in itself not sustainable due to loss of productivity and customer service. Background: The consulting firm of AECOM was retained to provide tendering specifications and technical support for the required HVAC upgrades to the Information Technology (IT) Server Room. Bids have been received to the tendering call, which closed on Wednesday, April 15, 2009. Ten (10) companies were invited to participate. An advertisement was placed in the Daily Commercial News and on the City's website. A mandatory site visit held on Monday, April 6, 2009 and sixteen (16) companies attended of which ten (10) bidders responded and submitted a bid for this project,. No addenda was issued during this tender call. The low bid was submitted by Mack Mechanical Solutions Inc. This company's references have been checked and are deemed acceptable by the consultant (AECOM) and the Division Head, Facilities Operations. The Health & Safety Policy, Confined Space Entry Procedure, List of Employees Trained in Confined Space, Workplace Injury; Summary Report, WSIB Clearance Certificate and Certificate of Insurance submitted by Mack Mechanical Solutions Inc. have been deemed acceptable by the Coordinator, Health & Safety. In conjunction with staffs review of the contractor's previous work experience and the bonding available on this project, the tender is deemed acceptable, Upon careful examination of all tenders and relevant documents received, the Facilities & Operations Division recommends the acceptance of the low bid submitted by Mack Mechanical Solutions Inc. for Tender No. T-5-2009 in the amount of $138,957 (GST included) and that the total net project cost of $162,340 be approved. This report has been prepared in conjunction with the Manager, Supply & Services who concurs with the foregoing. CORP0227-07/01 revised Report OES 10-09 May 11, 2009 Subject: Information Technology (IT) Server Room - HVAC Upgrades - Pickering CiVic Complex 147 -Tender No. T-5-2009 Page 4 Attachments: 1. Report OES 28-08 2. Supply & Services Memorandum dated April 17, 2009 3. Record of Tenders Opened and Checked 4. AECOM letter of recommendation Prepared By: Approve d By: Tony Prevedel Brett Buntsma Division Head, Facilities Operations Director, Operations & Emergency Services Ap roved/Endorsed By: Approved/Endorsed By: i Vera . Felgemacher illis Paterson C.P.P., CPPO, CPPB, C.P.M., CMM III 'rector,, Corporate Services & Manager, Supply & Services T easurer TP:mld Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council C Thomas T Q ' n, RDMR, CMM III Chief Admini ative Officer CORP0227-07/01 revised i ATTACHMENT# TO REPORT#LQE of Ca` REPORT TO At d- EXECUTIVE COMMITTEE 1 $ Report Number: OES 28-08 Date: October 14, 2008 From: Everett Buntsma Director, Operations & Emergency Services Subject: Information Technology (IT) Server Room - Ventilation and Air Conditioning, Civic Complex - File: A-1440 Recommendation: 1. That Report OES 28-08 regarding the Ventilation and Air Conditioning (HVAC) requirements for the Information Technology (IT) Server Room in the Civic Complex be received; 2. That staff be directed to proceed with a formal tender process for the provision of ventilation and air conditioning in the Information Technology Server Room. Executive Summary: The IT Server Room on the second floor of the Civic Complex is experiencing serious climate control problems. Three factors were identified that necessitated the HVAC be upgraded within the computer room during 2007: the first being additional hardware being aOded during the past several years to accommodate network growth; the second to compensate for the warming of the Civic Complex's air conditioning system that the computer room partially depends upon; and the third to replace the roof-mounted unit that vas installed approximately five years ago that is now insufficient to meet demand. i The 2008 Capital Budget included a $20,000.00 Olowance for the IT computer room air conditioning replacement; however, the total .cost based on informal quotations received on the Consultant's design is estimateid to be approximately $175,000.00, therefore, it was decided to re-submit this project in the 2009 Capital Budget and implement a temporary solution until then. However, during mid-July, a temporary unit was i stalled within the computer room to assist with rising temperatures, but during the n ght of September 4, 2008, the unit failed resulting in a complete shutdown of the computer room servers as a result of temperatures reaching 108 degrees Fahrenheit; The shutdown of the computer network resulted in the lost productivity of one-hal ' f day for most employees, and a full day for others, depending on the application systerh, accessed. The ability of the City to provide the expected level of customer service to its residents also was impacted. As this failure could occur again at any time, staff .are seeking authorization to proceed through the formal tendering process now. -149 a r Report OES 28-08 October 14, 2008 Subject: IT Server Room ? Ventilation and Air Conditioning Page 2 Financial Implications: The 2008 Capital Budget included a $20,000 allowance for IT Server Room air conditioning, but the total cost based on quotations received is estimated to be approximately $ 175,000.00. This is the realistic cost for a long-term solution. Funding for the expenditure, if approved by Council after the results of the Tender Call are known, will be provided from the 2008 Current Budget Contingency Account and/or Federal Gas Tax Funds and therefore, will not increase the total approved Budgets for 2008. Sustainability Implications: At present, the internal remedial measures being used to cool the Server Room are not energy or cost effective. If a properly designed upgrade is constructed, the climate control will once again fall within the City's Sustainability Guidelines. Adequate ventilation and ducting will reduce the energy requirement for cooling the area thus reducing the carbon footprint. In addition, the potential loss of network time is in itself not sustainable due to loss of productivity and customer service. Background: The need for upgraded ventilation and climate control in the IT Server Room, on the second floor of the Civic 0omplex was recognized in 2007 and budgeted for as a capital item in the 2008 Capital Budget for a total amount of $20,000.00. This budget estimate was originally based on an assumption that additional compressor units could simply be addeO to the roof. Engineering consultants (TSH) were commissioned to provide working sketches and specifications for the required upgrades in spring of 2008. During this process, it became evident that the required modifications would exceed the original budget estimate, as the ducting and ventilation was considered to be inadequate for a simple fix. Therefore, it was decided to defer the pfoject until 2009, and during 2008, implement a temporary solution using a portion of the $20,000.00. As stated, the temporary solution failed causing a complete shutdown in the City's computer network. Informal quotations from a list of qualified contractors were requested in July 2008 and site meetings were arranged by staff with each of t~e contractors. CORP0227.07/01 revised - -S D -0 of Report OES 28-08 October 14, 2008 150 Subject: IT Server Room Ventilation and Air Conditioning Page 3 i3 Quotations were received from three qualified contractors and ranged from $140,000.00 to $175,000.00. These quotations were based on detailed working sketches and a site visit. Details of the actual bids are not included due to confidentiality issues. As the prices greatly exceeded budget, it was decided to defer this project to the 2009 Capital Budget. In consultation with the Manager of Information Technology, an interim solution involving portable air conditioners was agreed upon in July 2008. However, because of the ducting limitations only one air conditioner could be operating and it was the only solution available within the budget restraints. On September 4, 2008, the temporary system failed. While it is unknown how long the computer room was without air-conditioning, it is known that at 8:10 am, the temperature within the computer room was 108 degrees Fahrenheit and metal components were hot to the touch. The following identifies both the known impact of this equipment failure, as well as the potential impact. Known 1. The City as a whole suffered a minimum of four and one-half hours of lost productivity, as the network was known to be inoperative from 7:00 am to 11:30 am. 2. Most servers went into thermal mode and shut down to protect against the extreme heat. The newer servers did not shut down, but powered down the processing capacity to reduce the heat output and power requirements. 3. The server hosting the financial, budget, customer care and property systems failed to start at 11:30 am, most likely as a result of heat damage. HP was called and according to the maintenance contract, the server was operational by 5:00 pm. Potential 1. It is quite possible the City will experience computer equipment failure(s). within the next three to five weeks. The result will be lost productivity. 2. It is possible that components of the telephone system could fail within the coming weeks due to the extreme heat experienced. If that were to occur, the City would be unable to respond to incoming telephone' calls, or to place outgoing calls. A system identified as the Corporation's most important system would be unavailable for an unknown time period. CORP0227-07/01 revised 151 of Report IDES 28-08 October 14, 2008 Subject: IT Server Room 4 Ventilation and Air Conditioning Page 4 3. It is possible that components of the email system could fail within the coming weeks due to the extreme heat experienced. If that were to occur, the City would be unable to send emails, and incoming empils could be lost. Staff have set up two portable air conditioning units to maintain an appropriate temperature in the Server Room. However, this solution is not effective in the long term. At present, hot air discharging from the Server Room is increasing the cooling load demand and creating a static air pressure prpblem in the entire Civic Complex. It is therefore recommended that staff be authorized to proceed with a formal tender process. Once completed, the results, together with financing will be presented to Council for approval in 2008. Attachments:. Not applicable Prepared By: Approved/Endorsed By: Tony revedel Everett unts Division Head, Facilities Operations Director, Operations & Emergency Services Prepared By: Approved/Endorsed By: Jory.Storms Gillif, AWinager, Information Technology Director, Corporate Services & Treasurer TP:mld Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council T J. Quinn, M , CMM II Chief Administrative Officer CORP0227-07/01 revised ATTACHMENT# TO REPORT# ~ E, of 3 Cal, o 1 5 2 PIC I MEMO To: Tony Prevedel April 17, 2009 Division Head, Facilities Operations From: Vera A. Felgemacher Manager; Supply & Services Copy: Supervisor, Facilities Operations Subject: Tender No. T-5-2009 Tender for IT Server Room HVAC Upgrades - Pickering Civic Complex . Closing: April 15, 2009 Tenders have been received for the above project. Eight (8) companies were invited to participate. An advertisement was placed in the Daily Commercial News and on the City's Website. A mandatory site visit was held on Monday, April 6, 2009, Sixteen (16) bidders attended of which ten (10) bidders responded and submitted a tender for this project. A copy of the Record of Tenders Opened and Chocked used at the public tender opening is attached. Tenders shall be irrevocable for 60 days after the official closing date and time. Purchasing Procedure No. PUR 010-001, Item 10.03 (r) provides checking tendered unit prices and extensions; unit prices shall govern and extensions will be corrected accordingly, which has been done. All deposits other than the low three bidders may be returned to the applicable bidders as provided for by Purchasing Procedure No. PUR 010-001, Item 10.03(w). Three (3) bids have been retained for review at this time. SUMMARY PST & GST included Bidder Total Tendered Amount $ After Calculation ;Check $ Mack Mechanical Solutions Inc. $138,9517.00 $138,957.00 Superior Boiler Works and $142,666.55 $142,666.55 Welding Ltd. Prairie Plumbing & Heating $157,290.00 $157,290.00 Snyder Construction $177,643.94 $177,643.94 ATTACHMENT# oZ.__ 4-OREPORT#61CS 153 a of Plan Group Inc. $179,550.00 $179,550.00 Bomben Plumbing & Heatin $183,750.00 $183,750.00 Canadian Tech Air Systems $219,450.00 $219,450.00 Gimco Ltd. $220,500.00 $220,500.00 Nekison Engineering & Construction Ltd. $304,500.00 $304,500.00 Automatic rejection - Agreement to bond submitted not in the amount of 100% of principal's bid amount for Performance and 100% of Pro 1 Group Ltd. principal's bid amount for Labour and Materials Payments. Reference: Purchasing By-lawn No. 5900-01, Procedure No. PUR 010-001, 10.04, Ftem 9 (c), 1 B Item 17, 18, 19, and Agreement to Bond Form AB-1 Pursuant to Information to Bidders Item 21, the following will be requested of the low bidder for your review during the evaluation stage of this tender call. Please advise when you wish us to proceed with this task. (a) a copy of the Health and Safety Policy to be used on this project, currently dated and signed; (b) ! Proof of compliance with amended Confined Space Entry Regulations (September 30, 2006). Copies of certified Training and Procedures to be used on this project; (c) A list of employees trained in the confined space entry procedure who will be working on this project; (d) a copy of the current Cost and Frequency Report issued by Workplace Safety & Insurance Board (in lieu of the Cost and Frequency document, a copy of the current CAD 7, NEER, or MAP reports may be submitted); (e) a copy of the current Clearance Certificate issued by Workplace Safety & Insurance Board (received with tender submission); (f) the City's certificate of insurance completed by the bidder's agent, broker or insurer (received with tender submission); (g) list of sub-contractors in accordance with GC Item 33, Form SCL-1 Include the following items in your Report to Council: (a) if items (a) through (d) noted above, are acceptable to the Co-ordinator, Health & Safety (b) any past work experience Mack Mechanical Solutions Inc. including work location; (c) without past work experience, if reference information is acceptable; (d) the appropriate account number(s) to which this work is to be charged; (e) the budget amount(s)- assigned thereto; (f) Treasurer's confirmation of funding; (g) related departmental approvals; (h) any reason(s) why the low bid of Mack Mechanical Solutions Inc. is not acceptable; and (i) related comments specific to the project. April 16, 2009 Tender No. T-5-2009 Page 2 Tender for IT Server Room HVAC Upgrades - Pickering Civic Complex ATTACH MENT# a TOREPORT# 6=0~G of 154 AECOM as the consultant on this project will be reviewing submissions and making recommendations to you. The consultant should also review carefully all submittal information based on tendering instructions. If the consultant notices any infractions or information missing during the evaluation, please contact a member of Supply & Services as soon as possible. Please do not disclose any information to enquiries except you can direct them to the City's website for the unofficial bid results as read out at the Public tender opening. Bidders will be advised of the outcome in due course. If you require further information, please feel free to contact me or a member of Supply & Servic S, Vera A. elgemacher VF/jg Attachments April 16, 2009 Tender No. T-5-2009 Page 3 Tender for IT Server Room HVAC Upgrades - Pickering Civic Complex _ ATTACH MENT#-.,:3 TOREPORT# 155 _ of j The following unofficial Bid results as read out at the public tender opening April 15, 2009 for: 1 Subject Tender No. T-5-2009 IT Server Room HVAC Upgrades - Pickering Civic Complex E Bidder Total Tendered Amount Snyder Construction $177,643.94 Bomben Plumbing & Heating $183,750.00 Plan Group Inc. $179,550.00 Canadian Tech Air Systems $219,450.00 Prairie Plumbing & Heating $157,290.00 Nekison Engineering & Construction Ltd. $304,500.00 Superior Boiler Works and Welding Ltd. $142,666.55 Pro 1 group Ltd. $211,680.00 Mack Mechanical Inc. Solutions $138,957.00 Ltd. $220,500.00 The information is strictly preliminary, pending review and verification of conformance to terms, conditions and specifications r -2UUU Hl Ug: H AM AECOM FAX NO. 905 668 0221 P. 02 ATTACHMENT# _z4 i`0 REPORT#b 0 - (5 AECOM of 156 300 Water Street Whitby. Ontario, Canada .LIN 912 (905) 668-9363 Fax: (905) 668-0222 April 24, 2009 Mr. Tony Prevedel Division Head, 11acilities Operations Division, City of Pickering One The Esplanade Pickering, Ont, LIV 6K7 Dear Mr. Prevedel: Re: Civic. Centre . I.T. Server Room HVAC Upgrades, Pickering Civic Complex, Tender T-5-2009 . AECOM Project No. 22-14562 We reviewed the docLainents received from your office: identifying the three low bidders who submitted quotations: 'Mack Mechanical Solutions Inc. "Mack Mechanical") $138,957.00, GST included Su erior Boiler Works and Weldin Limited "Su riot") $142,666.55, GST included Prairie Pl umbin and Heatin "Prairie PIumbin a d Hearin " $157 290.00, G 3T included For each of the bids: a) The quotation form does not appear to have mat6matical errors nor does it appear informal. b) Bid Bonds and Agreement to Bond forms were provided. c) Three reference projects were provided. d) It is assumed that corporate seals are affixed on the original documents as the seals are not visible on the copies reviewed. Only the Superior Boiler Works and Welding Limited tender included an insurance form and WSM sheet. These documents are not required at the time of the bid submission. There does not appear to be any non-conformity in any of the tender documents; the three low bidders' documents are compliant. The project budget estimate was $160,000 and all three of the low bids were below the budget estimate for the project. We note that the there is a substantial difference in the years of experience between the three low bidders as follows: Mack Mechanical 3 ears Su erior 46 ears Prairie Plumb in and Heatin 21 ears APR-24-2009-FRI 0917 AM AECOM FAX NO. 905 668 0221 P. 03 aTTAc lriPty `r0REP0RT#,.810C, lVlr. Prevedel, City of Pickering of 1 5j4 6124, 2009 None of the bidders identified any past experience with: the City of Pickering. We contacted the references listed by each of the three bidders to review their previous work performance: a) Prairie Plumbing and Heating had reasonable reports from two of three references that we contacted. A project for one of the references included services for a small computer room. The third reference has not responded to date. Prairie Plumbing and Heating has also satisfactorily completed a number of other projects in the Durham Region with AECOM however none, of the projects involved a computer room. b) Mack Mechanical received positive reports regarding their work and dealings from all of their referenced projects. The references contacted advised us that they were impressed with Mack Mechanical's professionalism, administration abilities and timely completion of the projects. There was a computer room involved in two of the three referenced projects. c) We attempted to contact the three references for Superior. The telephone numbers for two of the references were no longer in service, however, new numbers were discovered and contact was made. The contact names identified were no longer employed at the listed agencies. The thud reference advised us that they were completely satisfied with Superior's performance, capabilities and organization on the listed project, as well as on a number of other projects. Please note that none of the projects referenced actually relate to computer room installations. Since this project involves confined space entry requirements, as defined by the City of Pickering, the selected successful bidder should be required. to produce the proper confirmation documents for the personnel anticipated to be assigned to this project in order to confirm compliance to the OSHA procedures. In conclusion, the lowest compliant bidder is Mack Mechanical with a quotation of $138,957.00 GST included). Superior's quotation is second at $142,666.55 (GST included) and Prairie; Plumbing and Heating's quotation is third at $157,290.00 (GST included). We trust the aforementioned is satisfactory. Yours truly, AECOM Canada Ltd. Mark A. Benedet P.Eng. Manager -Mechanical Engineering MAB