HomeMy WebLinkAboutFIN-2021-66 - Non-Standard Procurement - Two (2) Trailer Mounted Drum Type Brush Chippers
REPORT TO: Committee of the Whole
DATE OF MEETING: 2021-12-13
SUBMITTED BY: Ryan Scott, Manager, 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: 2021-12-03
REPORT NO.: FIN-2021-66
SUBJECT: Non-Standard Procurement - Two (2) Trailer Mounted Drum Type
Brush Chippers
RECOMMENDATION:
That Douglas Powertech Enterprises Inc., Toronto, Ontario, be the sole source
provider for Two (2) Trailer Mounted Drum Type Brush Chippers, at their quoted price
of $249,200.00, plus H.S.T. of $32,396.09, for a total of $281,596.79.
REPORT HIGHLIGHTS:
The purpose of this report is to obtain approval to proceed with an award as per
Purchasing By-law 2017-106;
This report supports the delivery of core services.
BACKGROUND:
A Standard Procurement (competitive public process) was conducted; however it did not
result in the receipt of any Bids. This is a permitted circumstance to recommend the use of
Non-Standard Procurement under clause 170.8.2 of the Purchasing By-law 2017-106.
Units 13618 and 17653 in INS Parks and Cemeteries have been approved for replacement
through the Annual Equipment Review. These new units will be used for forestry
maintenance activities. The current units are five (5) and eight (8) years old with an
anticipated life cycle of eleven (11) years. Although they have not met the anticipated
lifecycle, it was agreed that they should be replaced early due to their unreliability, extreme
downtime, and the projected costs to maintain has exceeded their current value.
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REPORT:
As per clause 170.8.2of the Purchasing By-law 2017-106, it states, -
Standard Procurement process is only permitted under the following circumstances:
a. where a Standard Procurement process was conducted in accordance with
this By-law and applicable procedures and has not resulted in the receipt of
any Bids
As per clause 170.8.3 of the Purchasing By-law 2017-All non-standard
Procurement processes must be approved and conducted in accordance with this By-law
Requirement Procurement Procurement Approval Authority
Value Process
Excluding Taxes
Goods, Up to $99,999 Non-Competitive or Director of Supply
Services, Construction, Limited Competition Services
Consulting Services
Goods, Greater than Non-Competitive or Council
Services, Construction, $100,000 Limited Competition
Consulting Services
The quotation was reviewed by M. Lynch, Manager of Fleet Planning, who concurs with the
above recommendation.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
The net cost for this Quotation (A), is fair and reasonable for a purchase of this scope, but
the upset limit is beyond the allowance provided within the budget (B). Funding for this
equipment is included within the approved capital budget. The estimated deficit (D) will be
funded from previous surpluses that have been closed out to the Equipment Reserve Fund.
Two (2) Trailer Mounted Drum Type Brush Chippers
Estimated Cost for this Procurement
Quoted costs including optional equipment and HST $ 281,596.79
less: HST rebate on quote $ (28,010.16)
Net Cost Being Awarded $ 253,586.63 A
Projected Costs for Additional Outfitting -
Total Estimated Cost for this Quote $ 253,586.63 C
Budget for this Quotation
Replacing Unit 13618 & 17653 $ 230,000.00 B
Estimated Surplus/(Deficit) for this Quotation (B - C) $ (23,586.63) D
COMMUNITY ENGAGEMENT:
INFORM
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department