The Randle Reef sedimentation remediation project stage 1 – construction services 1

Table of contents

• 1. Introduction
• 2. Project requirement
• 3. Attestation of assurance
• 4. Methodology
• 5. Fairness Monitor activities and observations
  • 5.1 Procurement planning/pre-issue stage
  • 5.2 Invitation to tender posting
  • 5.3 Invitation to tender close
  • 5.4 Evaluation instructions
  • 5.5 Mandatory review
  • 5.6 Price evaluation and bidder selection
  • 5.7 Communications and debriefing
• 6. Reference documents

1. Introduction

The Randle Reef Sedimentation Remediation Project is a multi-stage project with services being procured through up to six publicly tendered processes.

RFPSolutions Inc. was engaged on November 26, 2013 as a Fairness Monitor (FM) to observe all stages of the competitive procurement processes associated with the Randle Reef Sediment Remediation Project. Each competitive procurement process will be subject to individual reporting.

This document reports the observations of the Fairness Monitor with respect to the competitive procurement process for Stage 1 Construction Services for Hamilton Harbour, Randle Reef Sediment Remediation, issued by Public Works and Government Services Canada (PWGSC) as a result of Solicitation Number EQ754-141728/A.

RFPSolutions Inc. is an independent third party with respect to this activity.

We hereby submit the Final Report, covering the activities of the Fairness Monitor, commencing with the draft Invitation to Tender prior to posting on the Government Electronic Tendering System (Buyandsell.gc.ca), continuing through the response to enquiries from potential bidders leading to the bid closing period, and finally the evaluation of bids.

The report includes our attestation of assurance, a summary of the scope and objectives of our assignment, the methodologies applied and relevant observations from the activities undertaken to date.

2. Project requirement

The Randle Reef Sediment Remediation Project is a multi-stage project to dredge and contain 630,000 m³ of contaminated sediment to reduce the environmental impacts of contaminants including polycyclic aromatic hydrocarbons (PAHs) and heavy metals in Hamilton Harbour. The project will lead to the restoration and eventual delisting of the Hamilton Harbour as an Area of Concern.

Environment Canada (EC) is the lead agency for the funding partners involved in the project. The funding partners include the Ontario Ministry of the Environment, Hamilton Port Authority, U.S. Steel, City of Hamilton, City of Burlington and Region of Halton. EC has contracted PWGSC to carry out the procurement and project management for the remediation.

The project will be completed in three distinct stages:

1. Stage 1 - Construction of a marine double wall Engineered Containment Facility (ECF) enclosure and a wharf at Pier 15. This includes dredging of contaminated sediments from between the walls and backfilling with clean rock fill.
2. Stage 2 - Dredging of contaminated sediments and depositing them within the ECF up to water level. Other remediation areas will be capped using both thin layer capping and isolation capping techniques.
3. Stage 3 - ECF sediment dewatering, capping above water level and consolidating of contaminated sediments within the ECF structure with engineered materials (stone, sand, geotextiles, geomembranes, pipes, asphalt etc.).

Project services are being procured through up to six publicly tendered processes:

1. Stage 1 - Construction Engineering Services (Construction Supervisor);
2. Stage 1 - Randle Reef Sediment Remediation (Construction Services);
3. Stage 2 - Construction Engineering Services (Construction Supervisor);
4. Stage 2 - Randle Reef Sediment Remediation (Dredging and Capping Services);
5. Stage 3 - Construction Engineering Services (Construction Supervisor);
6. Stage 3 - Randle Reef Sediment Remediation (Dewatering, Capping and Containment Services).

3. Attestation of assurance

The FM hereby provides the following unqualified assurance statement concerning the Randle Reef Sediment Remediation Project.

It is our professional opinion that the stage 1 construction services – invitation to tender (ITT) process we observed was carried out in a fair, open and transparent manner.

4. Methodology

In accordance with the terms of our engagement, we familiarized ourselves with the relevant documents, observed the pre-bid solicitation and bid solicitation activities identifying fairness-related matters to the Contracting Authority and ensuring that responses and actions were reasonable and appropriate. Section 5 of this report summarizes the specific activities and observations of the Fairness Monitor in respect of those activities.

5. Fairness Monitor activities and observations

5.1 Procurement planning/pre-issue stage

We were engaged to begin FM activities commencing with the development of the ITT. A review of the drafts and final ITT documentation was conducted. This included a review of the:

• Instructions to Bidders;
• Combined Price Form; and
• Qualification Forms.

We provided assurance as to the impartiality of the Requirements, the objectivity of evaluation criteria and process; and the clarity of the documentation to support understandability by bidders in preparing their Bids, as well as to mitigate the potential for inconsistency or errors in the eventual application of evaluation criteria by the Evaluation Committee.

Observations

In reviewing the draft ITT documentation, fairness considerations were identified by the Fairness Monitor and discussed with the Contracting Authority. All of the fairness considerations were addressed in the ITT prior to issuance.

5.2 Invitation to tender posting

The ITT (dated February 13, 2014) was issued to potential bidders via Buyandsell.gc.ca on February 14th, 2014; the final closing date was on April 15th, 2014 at 2:00 pm Eastern Standard Time.

An optional site visit for potential bidders was conducted by the Contracting Authority on March 11th, 2014 at 10:00 am at the site located at Hamilton Harbour, West side of Pier 15, Hamilton, Ontario. Prior to the site visit, the FM reviewed the protocol for the visit with the Contracting Authority. The protocol stipulated that the visit was to provide potential bidders with the opportunity to view and assess aspects of the work that cannot be adequately described in the tender documents; however, it was not intended to be a question and answer period. If questions or clarification were raised, the potential bidders were to be instructed to submit all questions or clarification in writing to the Contracting Authority. Responses to questions or clarifications would then be issued as formal amendments as appropriate, as well as any resulting changes to the tender requirements. A total of 19 firms participated in the optional site visit.

Following the site visit, the FM reviewed the activities of the site visit against the protocol with the Contracting Authority to ensure it was conducted in a fair and impartial manner.

In regard to the questions received during the posting period, a total of 67 questions were received and responses to the questions were provided to all potential bidders as amendments via Buyandsell.gc.ca. A total of seven (7) amendments were issued to answer questions and to amend 16 terms and conditions of the solicitation; each was reviewed by the Fairness Monitor beforehand.

Observations

In terms of the optional site visit, it was carried out in accordance with the protocol and no fairness issues were identified.

In regard to the activities monitored during the posting period, fairness considerations were identified with respect to the responses to questions and amendments to the terms and conditions of the solicitation. All fairness considerations were discussed with the Contracting Authority and addressed prior to the issuance of respective amendments.

5.3 Invitation to tender close

The Fairness Monitor discussed the manner in which the bid responses to the ITT were received and handled with the Contracting Authority.

Four (4) bids were received and handled in accordance with the closing requirements and deadline stated in the ITT.

Observations

No fairness issues were observed with respect to the receipt and handling of bids.

5.4 Evaluation instructions

Prior to bid evaluations, the Fairness Monitor reviewed the evaluation methodology and provided assurance as to the impartiality of methodology.

Observations

No fairness issues were observed as a result of the FM’s review of the evaluation methodology.

5.5 Mandatory review

Following tender closing, a review of the mandatory submission requirements was undertaken by PWGSC Real Property Contracting Directorate (RPCD) of the four (4) bids received. All four (4) bids were deemed to be responsive to these requirements as stated in the ITT. The FM independently confirmed this result. Following this review, the Technical Evaluation Committee reviewed the mandatory qualification requirements and all four (4) bids were found to be compliant with these requirements as articulated in the ITT. The FM observed the consensus evaluation of the Technical Evaluation Committee.

The Fairness Monitor then reviewed the results to assess them against the requirements in the ITT.

All four (4) bidders were invited to the opening of the price envelopes.

Observations

Based on the Fairness Monitor’s review of the results of the assessment of bidders’ compliance with the mandatory submission and qualification requirements, the FM observed no fairness considerations.

5.6 Price evaluation and bidder selection

In accordance with the ITT, a total lump sum price was provided by the bidders. The price envelopes from each responsive bidder were opened in the presence of the bidders on April 22, 2014.

The basis for award of the ITT is to the bidder submitting a responsive bid with the lowest price.

However, all bids received were priced over the estimated project budget and a contract has not been recommended for award. Based on this result, PWGSC and other stakeholders are considering options for fulfilling operational objectives that were to be fulfilled by the resulting contract.

Observations

The analysis of options is being carried out in consultation with the FM to ensure no issues of fairness arise and to maintain the integrity of the process.

5.7 Communications and debriefing

This section will be completed as an Addendum to this report following a decision on option(s) to fulfil the objectives of this process.

6. Reference documents

The following documents referenced by number in this report and unless otherwise indicated, are all available through PWGSC.

Table summary

The following table includes a list of documents referred to in the report such as the Request for Proposal (RFP), amendments, clarification letters, debriefing letters, etc. Each row is numbered, followed by the document title, then a document identifier such as a date or document number.

No.	Document	Document Date/Number
1	Invitation to Tender - Hamilton, ON - Sediment Remediation	February 13, 2014  / EQ754-141728/A
2	Solicitation Amendment No. 001 - Hamilton, ON - Sediment Remediation	February 21st, 2014
3	Solicitation Amendment No. 002 - Hamilton, ON - Sediment Remediation	March 7, 2014
4	Solicitation Amendment No. 003 - Hamilton, ON - Sediment Remediation	March 21st, 2014
5	Solicitation Amendment No. 004 - Hamilton, ON - Sediment Remediation	March 25, 2014
6	Solicitation Amendment No. 005 - Hamilton, ON - Sediment Remediation	March 28, 2014
7	Solicitation Amendment No. 006 - Hamilton, ON - Sediment Remediation	April 7, 2014
8	Solicitation Amendment No. 007 - Hamilton, ON - Sediment Remediation	April 10, 2014

Addendum to the final report
March 9, 2015

Addendum to the fairness monitor final report dated May 26, 2014 pertaining to the competitive procurement process for the tender of stage 1 construction services for Hamilton harbour, Randle Reef Sediment Remediation, issued by Public Works and Government Services Canada (PWGSC) as a result of solicitation number EQ754-141728/A.

This Addendum to the Fairness Monitor Final Report covers the period following the conclusion of the evaluation phase and the period to reach the decision to cancel the tender rather than award a contract. There were four bids received by PWGSC in response to this ITT. All four bids met the mandatory qualification requirements and were found to be compliant with the requirements as articulated in the ITT. All four bidders were invited to the opening of the price envelopes. All fours bids received were priced over the estimated project budget, and subsequentally, a contract was not recommended for award.

As a result of this outcome, it was determined to further consult with industry to explore options that will meet the overall objectives of the project as a whole within the available budget. The Randle Reef Sediment Remediation Project Fairness Monitor Industry Consultation Report Report dated September 2, 2014 describes the Fairness Monitor’s activities and attestation of fairness associated with the industry consultation process.

A new ITT process for stage 1 construction services will proceed when revised project requirements have been finalized.

Attestation of assurance

The FM hereby provides the following unqualified assurance statement concerning the Randle Reef Sediment Remediation Project.

It is our professional opinion that the stage 1 construction services – Invitation to Tender Process we observed, was carried out in a fair, open and transparent manner.