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HomeMy WebLinkAboutFCS-10-014 - T10-100 - PropaneS#aff Re orb KITCH~i~T~,R ftr~anre and corporate Services Department wwau:kitchenerca REPORT TO: Committee of the Whole DATE OF MEETING: 2010-12-20 SUBMITTED BY: Larry Gordon, Director of Supply Services, 2214 PREPARED BY: Steve Rudak, Buyer, 2213 WARD(S) INVOLVED: N/A DATE OF REPORT: 2010-12-14 REPORT NO.: FCS-10-014 SUBJECT: T10-100 -Propane: Hd5 Bulk & Cylinder Services (Co-operative) RECOMMENDATION: That tender T10-100, Propane: Hd5 Bulk & Cylinder Services (Co-operative), be awarded as follows: McRobert Fuels, Strathroy, Ontario at their tendered price of $91,194.78, plus H.S.T. of $11,855.32, for a total of $103,050.10, with an option to renew for four (4) additional one-year periods. Top Fuelers Inc, Kitchener, Ontario at their tendered price of $2,397.63, plus H.S.T. of $311.69, for a total of $2,709.32, for the refueling station portion of the contract. The City of Kitchener's portion of this co-operative contract is $57,760.98, plus H.S.T. of $7,508.93, for a total of $65,269.91 for one (1) year. BACKGROUND: This is a co-operative tender issued by the City of Kitchener (Lead Agency) on behalf of the Co- operative Purchasing Group of Waterloo Region (CPGWR). Participating agencies included: The City of Kitchener, The Township of Wellesley, The Grand River Conservation Authority and The Region of Waterloo. At any time during the course of the contract, other member Agencies may elect to participate in this contract. Propane is required in 20 and 33 Ib. cylinders, via bulk delivery into stationary tanks, and from a local re-fueling facility where staff may refill trailer mounted vessels with the fuel used primarily for cremation services, the heating of heritage and other facilities, and for the powering of ice resurfacers and other maintenance, repair and operational equipment such as trailer mounted pressure washers, welders, fork lifts, and bitumen hot boxes. S#aff Re orb KITCHENER ftr~anre and ~Orpor~te Services Deparrme~t wwavkitchenercn 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. Three (3) potential bidders downloaded tender documents, and by the closing date of Thursday November 18th, 2010, three (3) tenders had been received. The following tenders were received: Rir-I Prir`a Top Fuelers Kitchener ON $ 2,709.32 McRobert Fuels Strathroy ON $103,050.10 Superior Propane Guelph ON $106,448.00 The tender received from Top Fuelers is a partial bid and is for the provision of a refueling station site only. The price for cylinders decreased 15% from the previous contract. The price for bulk propane delivery service to stationary on-site tanks decreased 7.4% from the previous contract. Tenders were reviewed by S. Rudak, Buyer, who concurs with the above recommendation. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Theme: Financial Management Strategic Direction: Ensure responsible use of public funds within a supportive policy framework. The City of Kitchener's purchasing policies and practices ensure openness, fairness and transparency in the procurement of goods and services. FINANCIAL IMPLICATIONS: Funding will be provided from various operating accounts as required. COMMUNITY ENGAGEMENT: Not applicable Dan Chapman -Deputy CAO & City Treasurer, Finance and Corporate ACKNOWLEDGED BY: Services