Director, Purchasing and Materials Management

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1 BD94.11 MTono BID COMMITTEE - CONTRACT AWARD Award of Request for Proposal No to Concept Naval Experts Maritimes Inc. for the Total Design and Construction Support Services for the Construction of a New City of Toronto Marine Services Passenger and Vehicle Vessel Date: July 21, 2015 To: From: Bid Committee Director, Purchasing and Materials Management SUMMARY The purpose of this report is to request Bid Committee to rescind the award approved by Bid Committee at its meeting of June 29, 2016 (Item: BO 89.1) for Request for Proposal No to provide clarity with respect to the costs associated with the services for construction of the one ferry, and include additional wording to include option pricing to provide subsequent optional services and costs associated with the construction of a 2"d ferry, should the City choose to exercise this option. In addition, this report requests that name of the recommended proponent be changed from Concept Naval to Concept Naval Experts Maritimes Inc. Optional pricing wording was provided for in the original Request for Proposal document but inadvertently was omitted in the approved Bid Committee Report. The approved Bid Committee report includes the optional pricing for the services associated with construction of two ferries, but does not provide a separate price for services for construction of a single ferry, nor does it mention a second ferry. During the drafting of the resulting legal agreement, it was brought to PMMD's attention that the legal name provided on the Proposal submission was incorrect and reference to separate pricing for the two ferries was absent within the Bid Committee report. This amended report seeks approval to correct the name of the company to be awarded the contract, and to approve the revised values and associated language to include the potential subsequent optional services and costs associated with the construction of one and two ferries to the firm recommended. Report to Bid Committee on a contract award of RFP \

2 RECOMMENDATIONS The Director ofpurchasing and Materials Management recommends that the Bid Committee grant authority to award the following contract: I. Bid Committee rescind its decision to award Request for Proposal No at its meeting ofjune 29, 2016 (Item: BO 89.1) for the total design and construction support services for the construction ofa new City oftoronto Marine Services passenger and vehicle vessel, for the period from the date of award until the expected completion ofthe Contract on May 31, 2019 for a total potential contract award of $1,274,356 net ofall applicable truces and charges ($1,296, 785 net ofhst recoveries) to Concept Naval. 2. Bid Committee grant authority to award Request for Proposal No for the total design and construction support services for the construction ofa new City oftoronto Marine Services passenger and vehicle vessel, for the period from the date ofaward until the expected completion ofthe P 1 Vessel on May 31, 2019, or such later date as may be agreed to by the General Manager ofparks, Forestry and Recreation (the "General Manager"), with the option to retain the construction support and post construction services during the construction and delivery ofa second Vessel at the sole discretion ofthe General Manager and subject to budget approval(s), for completion on a date to be determined by the General Manager, at a cost of $1 ;083,792 for one ferry and an additional $190,564 for the optional second ferry, for a total potential contract award, including all options, of$1,274,356 net of all applicable truces and charges ($1,296,785 net ofhst recoveries) to Concept Naval Experts Maritimes Inc. Call No: Description: RFQ # The Purpose of this RFP is to select an appropriately qualified Vendor to provide Total Design and Construction Support Services for the construction of a new Vessel for the City's Marine Services Unit. The City is employing the services of the Vendor, to prepare a complete design package, including specification, preliminary design services, final design drawings, and other documents necessary for the construction of a new vessel. In addition to design services, the Vendor will also be required to provide consulting services for the creation of a subsequent RFP to select a Builder, construction support services during the entire construction phase leading to the certification of the new Vessel by Transport Canada Marine Safety and Technical Services Authority and Lloyd's Register of Shipping including delivery of the new certified Vessel to the City and post construction services to the City. The services will be provided from the date of award until expected Report to Bid Committee on a contract award of RFP

3 completion of the contract on May 31, 2019 (or such later date as may be agreed to by the General Manager), with the option to retain the construction support and post construction services during the construction and delivery of the second Vessel at the sole discretion of the General Manager, and subject to budget approval(s), for completion on a date to be determined by the General Manager. Should the option be exercised, the General Manager of Parks, Forestry & Recreation will request the Director of Purchasing and Materials Management to process the renewal under the same terms and conditions. ' Recommended Proponent: Contract Award Value: Concept Naval Experts Maritimes Inc. Pricing for the construction of one ferry: $1,083,792 net of all applicable taxes and charges $1,224,685 including all applicable taxes and charges $1,102,867 net of HST recoveries The contract is expected to start on the date of award and end upon expected completion of work on May 31, Pricing for the construction of an optional second ferry, should the option be exercised by the General Manager: $190,564 net of all applicable taxes and charges $215,338 including all applicable taxes and charges $193,918 net of HST recoveries I The total potential cost to the City, including all pricing Including the optional second ferry, is $1,296,785 net of HST recoveries. The total potential contract award including all optional pricing is $1,274,356 net of all applicable taxes and charges, $1,440,022 including all applicable taxes and charges. Financial Impact: The total potential contract award identified in this report including all optional pricing is $1,440,022 including all applicable truces and charges. The total potential cost to the City including all optional pricing is $1,296,785 net ofhst recoveries. Funding is included in the 2016 Approved Capital Budget and Approved Capital Plan for Parks, Forestry and Recreation. Should the City choose to exercise the option for a second ferry, appropriate additional funding will be included in the 2016 Approved Capital Budget and Approved Capital Plan for Parks, Forestry and Recreation. Funding details are provided below. Report to Bid Committee on a contract award of RFP

4 WBS Element Description Date of award to May. 31, 2019 Total (net of HST recoveries) CPR Ferry Boat Replacement #1 $1,083,792 $1,102,867 Option Pricing (Ferry Replacement #2) CPR Ferry Boat Replacement #2 $190,564 $ 193, 918 $1,296,785 CALL SUMMARY Ward No: All Call Dates: Issued: December Closed: April # of Addenda Issued: Seven (7) Number of Proposals: (6) Proponents Bid Price (Incl. HST, excluding Option Pricing) Nova Scotia Limited Vard Marine Inc. Capilano Maritime Design Ltd. Concept Naval Experts Maritimes Inc. Allswater Marine Consultants Limited Fleetway Inc. $2,224,478 $2,401,250 $1,545,235. $1,224,685 $1,819,952 NIA *Bid prices were corrected for mathematical errors. Purchasing and Materials Management has verified that the mathematical errors were corrected. ** Proponent declared non-compliant, price envelope remained unopened Range of Scores High Score of and lowest score of It is also important to note that the highest score was also the lowest cost bid. Division Contacts Elena Caruso James Dann Manager, Goods and Services Manager Waterfront Parks Purchasing and Materials Parks, Forestry and Recreation Management Telephone Telephone jdann@toronto.ca ecaruso@toronto.ca COMMENTS For the recommended contract award, the following requirements have been met: Report to Bid Committee on a contract award of RFP

5 (a) The firm recommended for award is the lowest bidder meeting specifications or to the highest scoring proponent based on the evaluation criteria included in the call and meeting the requirements of the call; (b) the appropriate Division has reviewed submissions and found the price to be reasonable, within available budget and concurs with the recommendation; (c) the total contract value is less than $20 million dollars (excluding applicable taxes) and the contract term is: i. for a contract funded by the operating budget, 5 years or less including any option years; or 11. for a contract funded by the capital budget, within the projected term of the capital funding for the project as set out in the capital budget, being within the authority ofthe Bid Committee; (d) there are no material written objections to the award; (e) the call document was advertised on the City's internet website and bids or proposals were opened publicly; and (f) the Fair Wage Office confirms the recommended firm understands the Fair Wage Policy and Labour Trades requirements and has agreed to comply fully. Additional details and information for the above calls are on the file in the Purchasing and Materials Management Division. Michael Pacholok Director, Purchasing and Materials Management Division Report to Bid Committee on a contract award of RFP

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