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HomeMy WebLinkAboutFCS-12-101 - T12-047 Three SandSalt Spreader BodiesREPORT TO:Committee of the Whole DATE OF MEETING: 2012-06-11 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: 2012-05-17 REPORT NO.: FCS-12-101 SUBJECT: T12-047- Three (3) Sand/Salt Spreader Bodies with Prewetting RECOMMENDATION: That Tender T12-047 – Three (3) Sand/Salt Spreader Bodies with Prewetting, be awarded to Joe Johnson Equipment Inc., Innisfil, Ontario, at their tendered price of $207,693., plus H.S.T. of $27,000.09, for a total of $234,693.09. BACKGROUND: These units will be additional at Operations, as approved for replacement in the 2012 Annual Fleet Equipment Review. 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 eleven (11) interested parties, and by the closing date of May 3, 2012, three (3) tenders had been received. Tenders were reviewed by M. Born, Manager of Fleet, who concurs with the above recommendation. The following tenders were received: Bid Price Amaco Construction Equipment Inc. Mississauga ON $191,535.00 Joe Johnson Equipment Inc. Innisfil ON $234,693.09 * Epoke North America Inc. Stittsville ON $271,962.75 The lowest bid submitted by Amaco Construction Equipment Inc. did not meet the specifications in sixty-one (61) areas. The top major areas are as follows: 1. No man door on top of the screen. If debris, such as chunks of wood or rocks, is stuck in the hopper, the unit needs to be brought into the garage in order to lift the whole screen off to remove the debris. ï ···÷ ó ï 2. No ladder that meets health and safety requirements. The ladder is a vertical ladder going up the side of the hopper. 3. The calibration of salt being distributed is not accurate and can not strip spread. (Strip spreading is placing a line of salt down the crown of a road, which allows you to use less salt) 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: The net cost for this tender (A) submitted by Joe Johnson Equipment Inc., is fair and reasonable for a purchase of this scope and the upset limit is within the budget allowance (B) provided for the replacement of these units. Funding for this equipment was included in the 2012 Fleet Equipment Purchases capital budget. The estimated surplus for this tender (D) will remain within the Equipment Reserve Fund to fund future equipment purchases. Tender T12-047 Supply and Install Sand/Salt Spreader Bodies with pre-wetting (three units) Estimated Cost for this Tender Tender T12-047 costs, including HST $ 234,693 less: HST rebate on tender (23,345) Net Cost Being Awarded 211,348 A Projected Costs for Additional Outfitting - Total Estimated Cost for this Tender $ 211,348 C Budget for this Tender Additional units for Operations $ 240,000 B Estimated Surplus/(Deficit) for this tender (B - C) $ 28,652 D COMMUNITY ENGAGEMENT: Not applicable ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate Services ï ···÷ ó î