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HomeMy WebLinkAboutFIN-10-064 - T10-021 - Ready Mix Concrete REPORT REPORT TO: Mayor Carl Zehr & Members of Council DATE OF MEETING: 2010-04-19 SUBMITTED BY: Larry Gordon, Director of Supply Services PREPARED BY: Steve Rudak, Buyer (2213) WARD(S) INVOLVED: N/A DATE OF REPORT: 2010-04-12 REPORT NO: FIN 10-064 SUBJECT: T10-021 – Ready Mix Concrete RECOMMENDATION: That tender T10-021, Ready Mix Concrete, be awarded to Hargest Concrete Ltd., Kitchener at their tendered price of $185,658.50, plus G.S.T. of $9,282.93 and P.S.T. of $14,852.68 for a total of $209,794.11. Award shall also carry an option to renew the agreement for up to three (3) additional twelve (12) month terms, subject to mutual agreement. BACKGROUND: This tender is based on fixed unit prices on an estimated representative sampling of concrete materials used in the previous year and actual spend will depend on the level of construction activity throughout the term of the contract. Ready Mix Concrete is an on-going maintenance, repair and operational (MRO) requirement of the Operations Division. The estimated average annual spend over the past three (3) years is $233,102.56. REPORT: Tenders were advertised publicly in The Record, on the City of Kitchener website and the Internet through the Ontario Public Buyers Electronic Tendering Information System. Four (4) potential bidders picked up tender documents, and by the closing date of Thursday April 1, 2010, five (5) tenders had been received. ï ª·÷ ó ï The tender received from Tri City Readymix Ltd. contained a mathematical error which has been corrected. The following tenders were received: Corrected Amount Hargest Concrete Ltd. Kitchener ON $209,794.11 * Hogg Fuel & Supply Ltd. Kitchener ON $210,576.35 Tri City Readymix Ltd. Kitchener ON $227,611.28 $212,562.60 Cross Country Concrete Heidelberg ON $229,707.53 CBM Concrete Toronto ON $245,533.18 The tenders were reviewed by C. Heise, Operations Supervisor Operations, and S. Rudak, Buyer, who concur with the above recommendation. FINANCIAL IMPLICATIONS: Funding will be provided from various operating accounts as required. HST may be charged on all or part of the contract amount, although the exact impact is not determinable at this time. The project manager has confirmed that sufficient contingency exists within the project budget to fund the cost of the non-rebatable portion of the HST should it become applicable to this contract. The price decreased by ¾% from the previous contract. ACKNOWLEDGED BY: Dan Chapman, General Manager of Financial Services and City Treasurer ï ª·÷ ó î