HomeMy WebLinkAboutFCS-12-053 - T12-006 Water Heaters Residential Regular Tank1
Staff Report
KI~rCx~.~T~R Finance and Corporate Services Department www.kifthenerca
REPORT TO: Committee of the Whole
DATE OF MEETING: 2012-03-26
SUBMITTED BY: Larry Gordon, Director of Supply Services, 2214
PREPARED BY: Steve Rudak, Buyer, 2213
WARD(S) INVOLVED: ALL
DATE OF REPORT: 2012-03-19
REPORT NO.: FCS-12-053
SUBJECT: T12-006 Water Heaters Residential Regular Tank
RECOMMENDATION:
That T12-006 Water Heaters Residential Regular Tank,
Enterprises Ltd., Fergus, Ontario, Giant Factories Inc.,
Canada Ltd., Brampton, Ontario, with an option to renew
month terms.
be split awarded to A.O. Smith
Montreal, Quebec, and Rheem
for two (2) additional twelve (12)
BACKGROUND:
Water Heaters are an annual requirement in support of the City's rental water heater program.
The estimated average annual spend over the past three (3) years was $1,770,590.92.
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.
Documents were downloaded by fifteen (15) interested parties, and by the closing date of
Thursday February 2nd, 2012, three (3) tenders had been received.
Tenders were reviewed by W. Malcolm, Director of Utilities, and B. Nash, Manager of Customer
Relations, who elected to award the project to A.O. Smith Enterprises Ltd., Fergus, Ontario,
Giant Factories Inc., Montreal, Quebec, and Rheem Canada Ltd., Brampton, Ontario.
The following tenders were received:
Bid Price
Schedule `A'
6 Year Warranty
Bid Price
Schedule `B'
8 Year Warrant
A.O. Smith Enterprises Ltd. Fergus ON
Giant Factories Inc. Montreal PQ
Rheem Canada Ltd. Brampton ON
$2,240,606.77
$2,679,434.76
$2, 340, 919.30
$2, 406, 547.27
$2,679,434.76
$2, 377, 542.60
1 ii) - 1
The award to three (3) vendors is to the lowest price per tank, complete to specification.
The price for water heaters has decreased 12% from the previous contract.
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:
Water heaters are a capital asset and their installation/replacement is funded through rental
rates.
COMMUNITY ENGAGEMENT:
Not applicable
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate
Services
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