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HomeMy WebLinkAboutFCS-12-086 - Q12-035 Hydraulic Hose and FittingsREPORT TO:Committee of the Whole DATE OF MEETING: 2012-05-14 SUBMITTED BY:Larry Gordon, Director of Supply Services, 2214 PREPARED BY: Laurie Stecho, Supervisor of Purchasing, 3576 WARD(S) INVOLVED:N/A DATE OF REPORT:2012-04-23 REPORT NO.: FCS-12-086 SUBJECT:Q12-035 - Hydraulic Hose and Fittings RECOMMENDATION: PACA Industrial That Quotation Q12-035 – Hydraulic Hose and Fittings, be awarded to Distribution, Kitchener, Ontario, at their quoted price of $16,390.32, plus H.S.T. of $2,130.74, for a total of $18,521.06, with an option to renew for two (2) additional twelve (12) month terms. BACKGROUND: The City requires hydraulic hose assemblies (fittings crimped on hydraulic hose) for repairs to various city vehicles. Hydraulic hose and fittings are inventoried in Stores and issued out as required. The estimated average annual spend over the past 3 years was $18,000.00. REPORT: This quotation was advertised publicly on the City of Kitchener website. Documents were downloaded by fifteen (15) interested parties, and by the closing date of Friday April 13, 2012, four (4) quotations had been received. The following quotations were received: Bid Price Runnalls Industries Brampton ON $ 13,312.62 PACA Industrial Distribution Kitchener ON $ 18,521.06 * Regional Hose K-W Ltd. Kitchener ON $ 18,530.56 Wajax Industrial Components Guelph ON $ 23,112.75 The lowest quotation submitted by Runnalls Industries is non-compliant. It did not meet the specification of having a 5 year warranty and they were unable to provide a location within 20 kilometres of the Kitchener Operations Facility (KOF). Having close proximity to the KOF is required in these situations, when speciality hoses (i.e. non-stock) are needed. City staff is required to drive to the vendors location, have the required hose assembly manufactured, and ï ·÷ ó ï then return to the KOF to install it on the vehicle in as quick a manner as possible to avoid down time on vehicles. Between January 1, 2011 and May 16, 2012, staff made 132 trips to have hoses made for equipment. The quotation was reviewed by S. Agnello, Supervisor of Stores, 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 operational accounts. The purchases are received against the inventory holding account and charged to the work orders and cost centers as they are consumed. COMMUNITY ENGAGEMENT: Not applicable ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate Services ï ·÷ ó î