This memorandum is to provide some background on revisions to the Guelph Civic Museum project prequalification process.
At all times, staff were following the City’s established tendering processes. However, due to the unique nature of the work on this heritage building, limited applications for prequalification were received by the City.
The project is not one of the infrastructure stimulus projects, utilizing the streamlined purchasing practice, which was approved this summer. This project does have grant funding which was approved about 18 months ago. The construction completion is targeted for March 31, 2010.
There were four prequalification components for the project: mechanical, electrical, heritage masonry and general contractor. There were 7 general contractors, 2 electrical and 3 masonary contractors, but only 1 mechanical who were prequalified. A second proponent for the mechanical had submitted an application, but the application was incomplete, requiring rejection under the City’s tendering policy.
The process is that the prequalified subcontract bidders submit bids to the seven pre-qualified general contractors, not directly to the City. The 7 pre-qualified general contractors submit bids to the City by October 8.
The situation where only one applicant successfully prequalified was not anticipated when the pre-qualification process was established, and has not occurred previously at the City, to our knowledge.
We had a teleconference with JMR, the mechanical contractor, and discussed an acceptable process, for re-opening the prequalification process.
Immediately following our conversation with the mechanical subcontractor, an addendum was issued late Friday afternoon, advising all general contractors that the new prequalification process for mechanical was reopened, with the details to follow on Monday morning, and that the general contractor closing date for the project was extended two weeks, to October 8.
Contrary to the article, the decision to alter the process was not motivated or timed by coverage in the local paper, but rather, concerns that tendering integrity be maintained, and agreement with the mechanical contractor, that it was important that a competitive process was in place.
I spoke to Scott Tracey late Friday afternoon after we had determined our course of action. Regretably, I should have brought this to Council’s attention on Friday evening, and apologize for the oversight.
These circumstances have identified an opportunity to improve the City’s prequalification procedures to ensure our tendering process remains above reproach.
Effective immediately all prequalification applications will require a minimum of two successful vendors, or the process will stop. The purchasing policy revisions scheduled in the staff workplan, will incorporate this approach.
Communications is working on a press release to provide clarification with respect to the recent media article, and we expect to issue it tomorrow. Staff