Submission Public. No. : 2013-T06e To : Board of Directors. For: DECISION Date : Eastern Lands and Sussex Maintenance Management Contract.
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1 Submission Public No. : 2013-T06e To : Board of Directors For: DECISION Date : TITLE Eastern Lands and Sussex Maintenance Management Contract. 2. PURPOSE OF SUBMISSION Approval of a Land Maintenance Management Contract. 3. AUTHORITY In accordance with By-law #1, subparagraph RECOMMENDATIONS a) That the Board of Directors approve the Eastern Lands and Sussex Maintenance Management Contract with Caltrio Inc. for a fixed term of five years commencing April 1, 2014, and ending March 31, 2019, with the total estimated value of the contract being $3,696,218 excluding taxes. The total amount includes CPI (estimated at 3% each year) over the five-year term. b) That the Chief Executive Officer be authorized to execute the said Contract. 5. ISSUES, IMPACT AND RISKS The Eastern Lands and Sussex Maintenance Management contract is one of 10 major maintenance management contracts managed by the Capital Lands and Parks Branch. Appendix B provides basic information on these contracts. This contract is the result of combining three contracts: the former Eastern Lands and Sussex North maintenance management contracts and the previously sole sourced snow and ice (SNIC) requirements at Rideau Hall and 24 Sussex (official residences). If approved on April 1 st 2014, Caltrio will continue to hold two major maintenance management contracts with the NCC. We have a high degree of confidence that the contractor is capable and qualified to undertake both contracts simultaneously. References were used as part of the evaluation process and helped confirm the contractor s competencies. The Emerald Ash Borer (EAB) continues to have a significant impact on operations and budgets. We feel the price submitted by Caltrio accurately reflects the value of the work and the risks associated with this invasive insect, more specifically the removal of trees killed by the insect. Submission : 2013-T06e Page 1 of 5
2 Submission Public The NCC has applied the following mitigation measures to more effectively deal with inflation and some of the inherent new risks associated with this contract. In particular, we have: Included an annual financial adjustment of fixed fees beginning in the second year of the contract. This yearly adjustment is based on the consumer price index (CPI) which we have estimated to be 3% annually over the life of the contract. Placed an upper limit on the total number of trees the contractor must remove as the result of the EAB infestation (1,500 trees). Issued as part of an addendum during the bidding process, the insertion of this limit in the contract addresses concerns expressed by contractors about the unpredictability of the potential financial impact of this operational responsibility. Clarified and streamlined operational standards. Comparative Cost Analysis Current Estimated cost to FY end 2013/14 (Eastern + Sussex + O.R. SNIC) $ 853, Initial forecast of year one cost for new combined contract $ 923, Year one price of winning bidder (Caltrio) $ 695,000 Financial forecasts for this contract were based on the expenditures associated with the contracts previously mentioned (Eastern, Sussex North and O.R. SNIC). The preferred bid is 25% below the financial forecast, with essentially all of the savings from this competitive bidding process coming from the snow and ice control portion of Caltrio s bid. The estimated five-year totals (excluding taxes) submitted by qualified proponents are as follows: Bidder 1 (Caltrio): $3,696,218 Bidder 2: $6,758,872 which is 83% higher than the preferred bid Bidder 3: $5,800,764 which is 57% higher than the preferred bid 6. NEXT STEPS Award the maintenance management contract to the preferred bidder, Caltrio Inc. 7. STRATEGIC LINKS The Commission's Corporate Plan Real Asset Management The establishment of Maintenance Management Contracts allows the NCC to manage and protect a portion of its assets (cultural heritage and natural environment of the Capital) while ensuring that they remain suitably accessible to the public. Submission : 2013-T06e Page 2 of 5
3 Submission Public Compliance with internal administrative policies This contract complies with internal administrative policies, especially those pertaining to: Contracting out through the Finance and Procurement Branch; Contract award; Contract administration; and Security investigations. 8. BACKGROUND 2. The request for proposal (RFP) for this contract was posted on buyandsell.gc.ca from July 18, 2013 to August 27, A site visit and a bidders conference were held on August 13, A total of 7 company representatives attended these events. The procurement process for this contract is subject to Chapter 5 of the Agreement on Internal Trade (AIT), but is exempt from the North American Free Trade Agreement (NAFTA). Three proposals were received. 3. The proposals were evaluated in three phases: a) Stage1 The proposals were verified to ensure they met the mandatory requirements (performance security); b) Stage 2 The proposals were evaluated based on the two following criteria: 1- the company's profile and experience, references, credit worthiness and 2 - the proposed operating plan. A minimum score of 70 % was required for each criterion to move to stage 3. All three proponents qualified. c) Stage 3 The envelopes containing the signed fee proposal and the breakdown of fixed fees were opened and the proponent with the lowest price was selected to negotiate a contract. 4. The preferred bid was submitted by Caltrio, a privately owned Ontario incorporated company with many years of experience in the provision of landscape, civil, waste and SNIC maintenance and operational services. They have executed three maintenance management contracts for the NCC and have performed satisfactorily. The price submitted for the present contract is very competitive. Official Languages Submission : 2013-T06e Page 3 of 5
4 Submission Public There are provisions in the contract that require the Contractor to provide front-line services to visitors in Canada's two official languages. Audit and Assessment A performance security clause and non-performance clauses form part of the contract to ensure compliance by the Contractor. Moreover, a NCC Contract Management Officer will be assigned to manage this contract and monitor the contractor s performance. If the need should arise, the contract contains a right of audit clause which permits the NCC to have access to the service provider s relevant books of account. An internal audit of all land maintenance contracts is planned to commence in late as approved by NCC s Audit Committee. 10. CONSULTATIONS AND COMMUNICATIONS Relevant NCC Branches and Divisions have been consulted and provided input in the development of this maintenance management contract. 11. LIST OF APPENDICES APPENDIX A: Map of the geographical boundaries of the Eastern Lands and Sussex Maintenance Contract. APPENDIX B: List of major contracts renewals 12. SUBMISSION AUTHORS Stephen Blight, Vice-President Capital Lands and Parks Branch Marc Corriveau, Director, Urban Lands and Transportation Capital Lands and Parks Branch François Daigneault, Senior Manager, Operations and Lifecycle Capital Lands and Parks Branch Michel Henry, Contract Officer Capital Lands and Parks Branch Submission : 2013-T06e Page 4 of 5
5 Submission Public APPENDIX A Submission : 2013-T06e Page 5 of 5
6 2013-T06e Appendix B: Major Land Maintenance Contracts Contract Contractor Description Group Start End Approximate yearly value Snow and ice control Gemma Properties Snow and ice control at Rideau Hall, 24 Sussex and Rideau Gate. OR April 1, 2013 March 31, 2014 $ Sussex North Eastern Lands Caltrio Gemma Properties etc. Includes Laurier House and Rideau Centre Terrace. etc. Includes Rockcliffe Parkway and Aviation Parkway. O&L April 1, 2009 March 31, 2014 $ Yearly value of the three contracts now combined in the new Eastern Lands. O&L April 1, 2009 March 31, 2014 $ $ Greenbelt Lafleur de la capitale Maintenance management of pathways, trails and natural lands in the greenbelt. Grnblt April 1, 2009 March 31, 2014 $ Western Park Lands Terra Pro Corporation including the Sir John A Macdonald Parkway. O&L April 1, 2011 March 31, 2015 $ Gatineau Park Demsis Maintenance management of park, pathways, trails, roadways and visitor services. GP April 1, 2007 March 31, 2015 $ Québec Urban Lands L'expert des parcs including Jacques Cartier Park and parc du lac Leamy. O&L April 1, 2011 March 31, 2016 $ Southern Lands Caltrio Company Limited including Vincent Massey Park and Hog's Back Park. O&L April 1, 2011 March 31, 2016 $ Snow clearing and ice maintenance Core Area Lands and Confederation Boulevard Core Area Government Sites Capital Property Guardians Lafleur de la capitale Lafleur de la capitale Snow clearing and ice maintenance operations on the Rideau Canal Skate way. RCS November 18, 2011 July 30, 2016 $ including Confederation Boulverad and Major's Hill Park. including Parliament Hill and the Supreme Court. O&L April 1, 2012 March 31, 2017 $ O&L April 1, 2012 March 31, 2017 $ Rideau Canal Corridor Cedar Springs Landscape Group etc. Includes Colonel By Drive, Queen Elisabeth Drive and Commissioners Park. O&L April 1, 2013 March 31, 2018 $ O&L OR RCS Grnblt GP Operations and Lifecycle Official Residences Rideau Canal Skateway Greenbelt Gatineau Park
7 Eastern Lands and Sussex Maintenance Management Contract Board of Directors November 20,
8 2
9 The Eastern Lands and Sussex contract within the Capital Urban Lands Master Plan 3
10 Recommendation That the Board of Directors approve the Eastern Lands and Sussex Maintenance Management Contract with Caltrio Inc. for a fixed term of five years commencing April 1, 2014, and ending March 31, 2019, with the total estimated value of the contract being $3,696,218 excluding taxes That the Chief Executive Officer be authorized to execute the said Contract. 4
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