January 20, 2010

Task order tenders fill niche in Toronto

KEN COLLICOTT

Special to DCN

Historically, the vast majority of municipal infrastructure projects in Canada have been implemented using the “design-bid-build” approach.

This approach requires a municipality to prepare the design and specifications for a project and then invite tenders for its construction. The lowest qualified bidder is usually selected by the municipality to construct the project.

In a few cases, such as the construction of a large project where there is opportunity for innovation in its design and construction, the “design-build” approach has been used. For this project delivery method, the municipality specifies the minimum performance requirements for the project and then invites design-build teams to submit bids for both the design and construction of the project. The bid that represents the best value to the municipality is usually selected to design and construct the project.

In some cases, a municipality may not have sufficient time to follow the normal tendering and award process, particularly when several projects have to be completed in a short period of time. In other cases, a municipality may be uncertain about the scope or schedule for projects, but cannot afford to delay the tendering process until these are more clearly defined.

The City of Toronto has two major infrastructure renewal programs underway; a basement flooding improvements program with a capital budget of $200 million and a stand alone watermain replacement program with a capital budget of $130 million.

These programs represent a “state of good repair” for Toronto. The city has received federal infrastructure stimulus funding for several projects to be completed in these two programs which means they have to be substantially completed by March 31, 2011.

In order to expedite these programs, the City of Toronto is using a project delivery method referred to as task order contracting. This unique method works as follows:

• The City invites contractors to submit tenders for a variety of items related to the work to be performed and provide references for similar work that they have completed in recent years;

• The City selects several contractors based on their total tendered amounts (assuming that they have provided satisfactory references) and then awards a General Services Contract (GSC) to each of the selected contractors;

• While the task order tendering process is underway, the City completes the design for several assignments;

• As soon as the GSCs have been executed and the design of several assignments has been completed, the City issues “task orders” for the first round of assignments to the selected contractors. In each task order, the City specifies the work to be completed, the schedule for completion and the total amount to be paid. The total amount to be paid for successful completion of each task order is based on the tendered unit prices from the GSC;

•The contractors commence the construction of their first assignments; and

• The city issues the next round of task orders to each contractor subject to satisfactory performance on their previous assignment.

The primary benefit of the task order contracting approach to the municipality is that it will reduce the time and effort for tendering and award of the numerous assignments within the basement flooding improvements program and the stand alone watermain replacement program. The city is under no obligation to issue more task orders to those contractors which do a poor job.

From the contractors’ perspective, task order contracting can provide a steady supply of work throughout the term of the contract resulting in more efficient management of their resources.

Task order contracting is a fair and transparent approach that can be used to successfully complete large programs in a cost effective and timely manner.

The City of Toronto has recently issued a task order tender for the first phase of the Stand Alone Watermain Replacement Program which will include replacement of approximately 30 km of watermain and 4 km of sewer over the next 12 months or so.

Ken Collicott, P.Eng., is Associate-Director at R.V. Anderson Associates Limited, overseeing the City of Toronto’s Stand Alone Watermain Replacement Program.

Print | Comment