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Home My WebLink AboutENG 22-24Report to Executive Committee Report Number: ENG 22-24 Date: November 4, 2024 From: Richard Holborn Director, Engineering Services Subject: Streetlight Maintenance - Request for Proposal No. RFP2024-10 - File: A-1440 Recommendation: 1. That the proposal submitted by Black & McDonald Limited, in response to Request for Proposal No. RFP2024-10 for Streetlight Maintenance, in the amount of $545,160.99 (HST included) be accepted for a term of one (1) year; 2. That the Mayor be requested to include funding in the amount of $490,934.00 (net HST) in the City’s 2025 Current Budget, (Engineering Services) to enable staff to award an agreement for a term of one (1) year for Streetlight Maintenance; 3. That, upon satisfactory contractor performance review by City staff, the Director, Engineering Services be authorized to extend this agreement on an annual basis thereafter for up to two (2) additional one (1) year terms with a price adjustment according to the annual rate of change in the Consumer Price Index (C.P.I.); 4. That the Director, Engineering Services be authorized to enter into and execute an agreement with the above-mentioned contractor pursuant to Request for Proposal No. RFP2024-10, and, 5. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: The purpose of this report is to obtain Council approval to award Request for Proposal No. RFP2024-10 to Black & McDonald Limited for Streetlight Maintenance. Request for Proposal (RFP) No. RFP2024-10 was advertised on Bids & Tenders for a new one (1) year streetlight maintenance service agreement with an option to extend for two (2) additional one (1) year terms. The RFP was published on July 16, 2024, and closed on August 23, 2024 with five proposals submitted. The Evaluation Committee, consisting of staff from the Engineering Services Department, reviewed and evaluated the proposals submitted using criteria outlined in the bid document. The Evaluation Committee recommends approval of the proposal submitted by Black & McDonald Limited for streetlight maintenance services in the amount of $545,160.99 (HST ENG 22-24 November 4, 2024 Subject: Streetlight Maintenance Page 2 included). The evaluation committee also recommends that a net project cost of $490,934.00 (net HST) be approved. Recommendation #2 above requests that the Mayor include funds in the 2025 Current Budget to enable the award of a streetlight maintenance service agreement for the City’s approximately 9,400 streetlight luminaires. Relationship to the Pickering Strategic Plan: The recommendations in this report respond to the Pickering Strategic Plan Priority of Advocate for an Inclusive, Welcoming, Safe & Healthy Community. Financial Implications: This agreement is for a term of one (1) year, with the option to extend on an annual basis thereafter for up to two additional one (1) year terms based on the Contractor providing satisfactory performance. Each term will have with the following scheduled dates: • The initial term is tentatively scheduled from date of award to December 31, 2025 (Year 1). • The first optional extension term is tentatively scheduled from January 1, 2026 to December 31, 2026 (Year 2). • The second optional extension term is tentatively scheduled from January 1, 2027 to December 31, 2027 (Year 3). For any optional extension terms, if approved, the Year One (1) unit prices will be adjusted according to the annual rate of change in the Consumer Price Index (C.P.I.), All items, Ontario as published ninety (90) days prior to the expiry of the current term. The funding for possible future extensions of this agreement will be included annually in the 2026 and 2027 Current Budget Streetlight cost centre. The City reserves the right to not extend the agreement to the second or third term should the Contractor’s performance not be deemed satisfactory. The proposed funding requirements for the initial term of this agreement, subject to Council approval is as follows: 1. Proposal Amount Request for Proposal No. RFP2024-10 $482,443.35 HST (13%) $62,717.64 Total Gross Tender Amount $545,160.99 ENG 22-24 November 4, 2024 Subject: Streetlight Maintenance Page 3 2. Estimated Project Cost Summary Request for Proposal No. RFP2024-10 Proposal Amount $482,443.00 HST (13%) 62,718.00 Total Gross Project Cost $545,161.00 HST Rebate (11.24%) (54,227.00) Total Net Project Cost $490,934.00 3. Proposed Source of Funds – 2025 Current Budget Expense Code Source of Funds Proposed Budget Required 10520.502380 Property Tax $500,000.00 $490,934.00 Net Project Cost under (over) Approved Funds $9,066.00 While the agreement establishes unit pricing for the repair and maintenance of the City’s streetlight infrastructure, actual costs incurred are based on actual deficiency quantities (failed components, underground electrical wiring faults, damaged infrastructure, etc.). Discussion: The purpose of this report is to: 1. Obtain Council approval to execute a service agreement for a term of one (1) year to Black & McDonald Limited, to provide streetlight maintenance services for the City’s approximately 9,400 streetlight luminaires and associated infrastructure; and, 2. Obtain Council authorization for the Director, Engineering Services to extend this agreement on an annual basis for up to two (2) additional one (1) year terms upon satisfactory Contractor performance. Request for Proposal (RFP) No. RFP2024-10 was advertised on Bids & Tenders for a new one (1) year streetlight maintenance service agreement with an option to extend for two (2) additional one (1) year terms. The RFP was published on July 16, 2024, and closed on August 23, 2024, with five proposals submitted. The Evaluation Committee, consisting of staff from the Engineering Services Department, reviewed and evaluated the proposals submitted using criteria outlined in the bid document. Proposals were evaluated and ranked based on the experience and qualifications of the Contractor, the understanding of the project requirements, and their price. Black & McDonald Limited was the top-ranked Proponent and is recommended for the Award. Black & McDonald Limited (B&M) is a national multi-trade contractor registered and licensed to do business in all provinces and territories of Canada. B&M operates out of a network of 35+ offices across North America with over 7,000 employees and has a significant presence in the Greater Toronto Area. Services offered by B&M include various electrical construction and maintenance as well as energy and sustainability services. Examples of recent work include ENG 22-24 November 4, 2024 Subject: Streetlight Maintenance Page 4 maintenance contracts with the Town of Aurora, the Ministry of Transportation and Toronto Hydro. B&M has extensive experience in streetlight maintenance across southern Ontario and offers the labour, equipment and material capabilities to adequately respond to the City’s streetlighting maintenance and repair requirements. For the initial term of the agreement, the net project cost is $490,934.00 (net HST). Costs for the initial term will occur in 2025. In Recommendation #2 above, the Mayor is requested to include the appropriate funds in the 2025 Current Budget. Any extension of the agreement is subject to satisfactory performance of the Contractor through an annual review process and will be included annually in future Current Budgets. All pre-conditions of award have been reviewed and deemed to be acceptable. The Evaluation Committee recommends approval of the fee proposal submitted by Black & McDonald Limited for streetlight maintenance services in the amount of $545,160.99 (HST included). The evaluation committee also recommends that a net project cost of $490,934.00 (net HST) be approved. Attachment: None Prepared By: Approved/Endorsed By: Kevin Heathcote, P.Eng. Richard Holborn, P. Eng. Division Head, Capital Projects & Infrastructure Director, Engineering Services Cathy Bazinet, CPPB, NIGP-CPP Stan Karwowski, MBA, CPA, CMA Manager, Procurement Director, Finance & Treasurer KH:mjh Recommended for the consideration of Pickering City Council Marisa Carpino, M.A. Chief Administrative Officer Original signed by:Original signed by: Original signed by:Original signed by: Original signed by: