HomeMy WebLinkAboutFCS-11-151 - T11-016 Residential Tankless Water Heaters
REPORT TO:
Committee of the Whole
DATE OF MEETING: 2011-09-19
SUBMITTED BY: Larry Gordon, Director of Supply Services, 2214
PREPARED BY: Steve Rudak, Buyer, 2213
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2011-08-31
REPORT NO.: FCS-11-151
SUBJECT: T11-016 Residential Tankless Water Heaters
www.kitchenerca
RECOMMENDATION:
That Tender T11-016, Residential Tankless Water Heaters, be awarded to Rheem Canada
Ltd., Brampton, Ontario, at their tendered price of $310,500.00, plus H.S.T. of $40,365.00, for
a total of $350,865.00, with an option to renew for two (2) additional twelve (12) month terms.
BACKGROUND:
The introduction of tankless water heaters to the marketplace coupled with customer requests
for the new technology has given rise for Kitchener Utilities to offer a tankless rental water
heater solution to the residents of the city.
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. Sixteen
(16) potential bidders downloaded tender documents, and by the closing date of Thursday May
19, 2011, six (6) tenders had been received.
The following tenders were received:
Bid Price
Desco Plumbing & Heating Supply Inc. Kitchener ON $197,382.75
Tempco Heating Sheet Metal Inc. Toronto ON $204,993.30
Rheem Canada Ltd. Brampton ON $350,865.00
Total Engineered HVAC Solutions Inc. Waterloo ON $355,543.20
Redmond Williams Distributing Mississauga ON $484,600.50
Powerful Group of Companies Inc. Mississauga ON $944,680.00
Tenders received from Desco Plumbing & Heating and Tempco Heating Sheet Metal are partial
bids and they do not meet the warranty requirements specified.
S~a~'Re~port
finance and Corporate Services department
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Tenders were reviewed by W. Malcolm, Director of Utilities, B, Nash, Manager of Customer
Service, and S. Rudak, Buyer, who concur with the above recommendation.
FINANCIAL IMPLICATIONS
Funding will be provided from Internal Order 56000210 -Hot Water Heater Rental Program.
Funding is derived from the depreciation of the existing rented water heaters.
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.
COMMUNITY ENGAGEMENT:
Not applicable
Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate
ACKNOWLEDGED BY: Services
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