Hot strip coiling simulation facility

Trade Agreement: CETA/WTO-AGP/CPTPP/CFTA/FTAs with Peru/Colombia/Panama/Korea/UK
Tendering Procedures: Generally only one firm has been invited to bid
Non-Competitive Procurement Strategy: Exclusive Rights
Comprehensive Land Claim Agreement: No
Vendor Name and Address: 
Quad Engineering Inc.
75 Scarsdale Rd.
Toronto Ontario
Canada
M3B2R2
Nature of Requirements: 

1. Advance Contract Award Notice (ACAN) 

An ACAN is a public notice indicating to the supplier community that a department or agency intends to award a contract for goods, services or construction to a pre-identified supplier, thereby allowing other suppliers to signal their interest in bidding, by submitting a statement of capabilities. If no supplier submits a statement of capabilities that meets the requirements set out in the ACAN, on or before the closing date stated in the ACAN, the contracting officer may then proceed with the award to the pre-identified supplier. 

2. Definition of the requirement 

CanmetMATERIALS (CMAT) pilot hot and cold rolling mill requires an upgrade of the mill capabilities to include a hot strip coiling simulation facility.  This is needed in order to satisfy the technical requirements for our major Canadian clients, ArcelorMittal Dofasco, Stelco, Evraz, Algoma and Gerdau. The strip coiling system must accurately replicate the heat treatment (thermal cycle) of an industrial steel coil on pilot scale steel samples after hot rolling has been completed.

2.1 Background

The CMAT hot and cold rolling mill is a facility that is unique in North America. It permits the simulation of industrial thermomechanical processes such as hot rolling and cold rolling at a pilot scale and CMAT is one of the very few laboratories in the world with this capability. Over the past 7 years, CMAT researchers using this facility have built up a strong international reputation in the field of new steel alloy/process development for a multitude of major industrial clients, including all of the established Canadian steel producers.

The mill is equipped with a sophisticated On-Line Accelerated Cooling system (OLAC) which employs jets of water for precise control over the cooling path of plates or strips after hot rolling. However, there is no proper facility to simulate the temperature evolution which occurs in industry when then material is coiled after hot rolling and water cooling. Most modern Advanced High Strength Steels (AHSS) rely on the presence of hard phases (martensite, bainite) which form at low temperatures during fast cooling and coiling. The availability of a coiling simulation facility at the exit of the OLAC system is essential for the correct simulation of client industrial processes and the development of innovative AHSS grades.

2.2 Functional Description

A Strip Coiling Simulator is a system that can simulate the slow cooling heat treatment of industrial steel coils on plate and/or strip sections produced by the CMAT pilot rolling mill. The system must contain a strip transportation system and a fast-acting loading device capable of handling steel strips up to 3m in length. The system must be capable of accurately reproducing heat treatments in accordance with user defined time - temperature curves. Temperature accuracy must be maintained across the full width and length of each loaded strip (up to three in number). For more rapid cooling, the furnace shall be equipped with an air blower and adjustable vents.

Space is constrained and the system must be incorporated into the existing rolling mill and OLAC structure and piping. Modifications to the existing run-out table will be required. 

The system will be installed over existing OLAC piping. The furnace must be removable to allow access to the OLAC water filter and pipework underneath this location. Power must be supplied via quick-disconnect terminals. 

The system must be operated by no more that two people, with the main operator located at the main panel. The system must record the temperature distribution across the sample and display it on the main operator panel. 

The Strip Coiling Simulator’s safety interlocks must interface with the existing rolling mill and OLAC safety circuit. The combined system must pass a Pre-Start Health and Safety Review (PSHSR) 

2.3 Scope of Requirement

The scope of requirement includes:
- Detailed drawings
- Supply of all components 
- Fabrication and erection on site
- Commissioning
- Operator and maintenance manuals,
- Training

3. Criteria for assessment of the Statement of Capabilities (Minimum Essential Requirements) 

Any interested supplier must demonstrate by way of a statement of capabilities that its product/equipment/system meets the following requirements: 

3.1 GENERAL

1 Operate indoors in ambient humidity from 10% to 80% and in ambient temperatures from 10 °C to 35 °C.

2 The system must be removable from the support structure using a crane. The electrical supply must disconnect using an ESA certified quick-disconnect plug. 

3 The completed system must effectively simulate industrial post-rolling heat treatment of metal plates. It must accommodate 3 strips of maximum length 3m with a total weight of 400kg.

4 Individual steel workpiece (strip) specifications:

CMAT coiling furnace simulator specifications 
Strip weight Max - 200 kg Min - 10 kg
Strip thickness Max - 50 mm Min - 2 mm 
Strip width  Max - 300 mm Min - 100 mm
Strip length Max - 3.0 m Min - 1.0 m
Non-flatness  Max - 200 mm Min - 0 mm

The furnace must accommodate two 300 mm wide strips or three 200 mm wide strips.

5 The controllable operating temperature of the system must be 100°C to 800°C. The allowable temperature variation inside the furnace from the set curve is ±15°C. The minimum heating rate is 5°C/min over the entire operating range. The minimum controlled cooling rate with the system must be 30°C/hour or less.

6 Rapid cooling with an air blower and adjustable vents or equivalent must be included.

7 Furnace status must be indicated at the main rolling mill control panel. 

8 The maximum allowable loading time is 20 second. The maximum allowable unloading time is 60 seconds or less. The complete loading and unloading process must be accomplished by one dedicated operator and at most one other rolling mill operator located at the main control panel. Loading and unloading must be automated.

9 Temperature data of the system and the work piece must be recorded using a data acquisition system.

10 The electrical supply must operate at 600V or lower. The electrical power requirements must be 90 kVA or less. 

11 The control system must integrate with the existing custom Quad Engineering control system that includes, but is not limited to, PLCs, HMIs, Sensors, actuators, and motor drives.

12 Safety interlocks must integrate with the existing safety system consisting of an independent two channel control reliable PLC safety circuit designed by Quad Engineering. 

13 Must pass pre-start health and safety review conducted by an engineer licensed to operate in the province of Ontario.

4. Applicability of the trade agreement(s) to the procurement 

This procurement is subject to the following trade agreement(s): 
- Canadian Free Trade Agreement (CFTA)
- World Trade Organization - Agreement on Government Procurement (WTO-AGP)
- Canada-European Union Comprehensive Economic and Trade Agreement (CETA)
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
- Canada-Chile Free Trade Agreement (CCFTA)
- Canada-Colombia Free Trade Agreement
- Canada-Honduras Free Trade Agreement
- Canada-Korea Free Trade Agreement
- Canada-Panama Free Trade Agreement
- Canada-Peru Free Trade Agreement (CPFTA)
- Canada-United Kingdom Trade Continuity Agreement (Canada-UK TCA)
- Canada-Ukraine Free Trade Agreement (CUFTA)

5. Justification for the Pre-Identified Supplier 

The coiling simulator is an upgrade to CMAT’s existing rolling mill which was designed, built, and installed by QUAD Engineering. 

The system will be integrated into the structure of the existing rolling mill. It must not overload existing structures or impede the operation of existing systems. QUAD has proprietary knowledge of the structural design of the mill and OLAC. The design of the OLAC system is the intellectual property of QUAD engineering. The system will be located above key components of the OLAC. The system must not impede the access, use, or maintenance of these components. It is believed that only QUAD has the knowledge to do this. 

The system must be incorporated with the existing safety systems. It must not reduce or impede the safety of the overall system. The existing safety circuit was designed and programed by QUAD. 

The monitoring and control of the strip coiling simulator must be incorporated with the existing rolling mill and OLAC control system. The design of programming of this system are the knowledge of QUAD engineering.

According to the purchasing policies of Government Contracts, PSPC proposes to award the contract to "QUAD Engineering", that is, to our knowledge, the only company able to provide the required goods and services. 
 
6. Government Contracts Regulations Exception(s) 

The following exception(s) to the Government Contracts Regulations is (are) invoked for this procurement under subsection 6(d) "only one person is capable of performing the contract".

7. Exclusions and/or Limited Tendering Reasons

The following exclusion(s) and/or limited tendering reasons are invoked under the section of the trade agreement(s) specified:

Canadian Free Trade Agreement (CFTA) - Article 513.1(b)(iii);
World Trade Organization - Agreement on Government Procurement (WTO-AGP) - Article XIII 1(b)(iii);
Canada-European Union Comprehensive Economic and Trade Agreement (CETA) - Article 19.12.1(b)(iii);
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) - Article 15.10.2(b)(iii);
Canada-Chile Free Trade Agreement (CCFTA) - Article Kbis-09.1(b);
Canada-Colombia Free Trade Agreement - Article 1409.1(b)(iii);
Canada-Honduras Free Trade Agreement - Article 17.11.2 (b)(iii);
Canada-Korea Free Trade Agreement - defer to WTO-AGP Article XIII 1(b)(iii);
Canada-Panama Free Trade Agreement - Article 16.10.1(b)(iii);
Canada-Peru Free Trade Agreement (CPFTA) - Article 16.10.1(b)(iii);
Canada-United Kingdom Trade Continuity Agreement (Canada-UK TCA) - defer to CETA Article 19.12.1(b)(iii); and
Canada-Ukraine Free Trade Agreement (CUFTA) - Article 16.10.1(b)(iii).

8. Period of the proposed contract or delivery date 

CMAT requires that 80% of the contract be completed and invoiced by March 31st of 2022. The remaining 20% must be completed by September 15 2022.

9. Cost estimate of the proposed contract 

The estimated value of the contract, is $305,000.00 (GST/HST extra). 

10. Name and address of the pre-identified supplier 

QUAD Engineering
90 Sheppard Ave East- Suite 700
Toronto, Ontario
M2N 3A1

11. Suppliers' right to submit a statement of capabilities 

Suppliers who consider themselves fully qualified and available to provide the goods, services or construction services described in the ACAN may submit a statement of capabilities in writing to the contact person identified in this notice on or before the closing date of this notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

12. Closing date for a submission of a statement of capabilities 

The closing date and time for accepting statements of capabilities is November 8, 2021 at 2:00 p.m. EST. 

13. Inquiries and submission of statements of capabilities 

Inquiries and statements of capabilities are to be directed to: 

Name:  Mike Littlefield
Title:   Supply Specialist
         Public Services and Procurement Canada
         Acquisitions Branch
Address: 86 Clarence Street, 2nd Floor
         Kingston, Ontario, K7L 1X3
Telephone:  (613) 449-4206
E-mail address: mike.littlefield@pwgsc-tpsgc.gc.ca


Delivery Date: Above-mentioned

You are hereby notified that the government intends to negotiate with one firm only as identified above. Should you have any questions concerning this requirement, contact the contracting officer identified above.

An Advance Contract Award Notice (ACAN) allows departments and agencies to post a notice, for no less than fifteen (15) calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, on or before the closing date, a Statement of Capabilities that meets the requirements set out in the ACAN, the contracting authority may then proceed with the award.  However, should a Statement of Capabilities be found to meet the requirements set out in the ACAN, then the contracting authority will proceed to a full tendering process.

Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, may submit a statement of capabilities in writing to the contact person identified in this Notice on or before the closing date of this Notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

The PWGSC file number, the contracting officer's name and the closing date of the ACAN must appear on the outside of the envelope in block letters or, in the case of a facsimile transmission, on the covering page.

The Crown retains the right to negotiate with suppliers on any procurement.

Documents may be submitted in either official language of Canada.