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HomeMy WebLinkAboutFIN-20-057 - T20-135 Towing ServicesREPORT TO: Committee of the Whole DATE OF MEETING: 2020-08-24 SUBMITTED BY: Ryan Scott,Manager of Procurement, 519-741-2200 ext. 7214 PREPARED BY: Jenny Ung,Associate Procurement Specialist,519-741-2200 ext. 7216 WARD (S) INVOLVED: N/A DATE OF REPORT:2020-07-28 REPORT NO.: FIN-20-057 SUBJECT: T20-135Towing Services __________________________________________________________________________________________ RECOMMENDATION: That the City of Kitchener’s portion of Co-operative Tender T20-135Towing Services, be awarded to Becker Bros. Towing,Kitchener,Ontario, at their tendered price of $195,310.00, plus H.S.T. of $25,390.30, for a total of $220,700.30,for a one (1) year term, with an option to renew for two (2) additional twelve (12) month terms. BACKGROUND: This is a co-operative tender issued by the City of Kitchener (Lead Agency) on behalf of the Grand River Cooperative Procurement Group (GRCPG). Participating agencies include: City of Waterloo. This contract is to provide towing and related services, as requested, by both the fleetand bylaw enforcement divisions. The bylaw enforcement initiates tag and tow services during snow events and towing of vehicles that are illegally parked. When a vehicle is towed to an impound lot, the cost is paid by the owner of the vehicle. The fleet divisioninitiates towing of City owned equipment to and from the Kitchener Operations Facility when repairs are required and for transporting City owned equipment to various job sites. When relocation tows are required, the City bears the cost. This includes the floatingof heavy equipment, which requires specialized trucks which limit the number of vendors able to provide this service. The contract is based on fixed unit prices for a representative sampling of towing services used over the last year. The average annual spend over the past three (3) years was $142,737.80. The actual spend will depend on the level of activity throughout the term of the contract. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994for assistance. 1.i - 1 REPORT: As per clause 170.7.3 of the Purchasing By-law 2017-106, it states, “Regardless of Procurement Value, theManager ofProcurementshall submit a report to Council recommending award of a purchase greater than $100,000 if any one or more of the following conditions apply: d. only one Bid was received in response to a Solicitation”. Tenders were advertised publicly on the City of Kitchenerwebsite. Documents were downloaded by one (1) interested party and by the closing date of MondayJuly27,2020,one (1) tender had been received. The following tenders were received: Bid Price Becker Bros. Trucking Inc. Kitchener ON $220,700.30* The unit pricing by service requirement for towing services has increased 32% from the 2017 contract. Under the City’s requirements, the contractor is to hold 8 to 10 vehicles on standby at all times to meet service demand which limits the number of towing companies capable of providing the service. This is to respond effectively to City requirement duringsnow events. In the previous 2017 contract for towing services, one submission was received for this bid opportunity. The tender was reviewed by M. Born, Manager of Fleet, who concurs with the above recommendation. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the city’s strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: Funding will be provided from the Fleet operating account. COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. 1.i - 2 PREVIOUS CONSIDERATION OF THIS MATTER: Not applicable ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department 1.i - 3