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HomeMy WebLinkAboutFIN-10-098 - T10-043 Aggregates REPORT REPORT TO: Mayor Carl Zehr & Members of Council DATE OF MEETING: 2010-06-14 SUBMITTED BY: Larry Gordon, Director of Supply Services PREPARED BY: Steve Rudak, Buyer (2213) WARD(S) INVOLVED: N/A DATE OF REPORT: 2010-06-07 REPORT NO: FIN 10-098 SUBJECT: T10-043 - Aggregates RECOMMENDATION: That tender T10-043, Aggregates, be awarded to Tri City Materials, Petersburg, Ontario at their corrected tendered price of $131,539.70, plus G.S.T. of $6,576.99 and P.S.T. of 10,523.18, for a total of $148,639.87, for a one (1) year period, with an option to renew for three (3) additional twelve (12) month terms, subject to mutual agreement. BACKGROUND: This tender is based on fixed unit prices on a representative sampling of aggregate types used over the last year and actual spend will depend on the level of activity throughout the term of the contract. The aggregate tender covers a variety of materials used by Operations that include winter sand for road maintenance, aggregates for trail resurfacing, pipe bedding, watercourse maintenance, road base repairs and sidewalk mud jacking. Both tenders contained mathematical errors which have been corrected. The annual estimated spend per year, over the previous 3 years, was $216,398.14 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. Five (5) potential bidders downloaded the tender documents, and by the closing date of Thursday April th 29, 2010, two (2) tenders had been received. ï ó ª··÷ ó ï The following tenders were received: Total Bid Corrected Bid Price Price Tri City Materials Petersburg, ON. $143,132.01 $148,639.87 * Dufferin Aggregates Kitchener, ON. $171,125.84 $179,682.14 The tenders were reviewed by S. Berry, Manager, Maintenance 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 increased 1.75% from the previous contract on the top three (3) materials. ACKNOWLEDGED BY: Dan Chapman, General Manager of Financial Services and City Treasurer ï ó ª··÷ ó î