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HomeMy WebLinkAboutFCS-13-010 -T12-073 - De-Liming Water HeatersREPORT TO:Committee of the Whole DATE OF MEETING: 2013-02-04 SUBMITTED BY: Larry Gordon, Director of Supply Services, 7214 PREPARED BY: Steve Rudak, Buyer, 7213 WARD(S) INVOLVED: All DATE OF REPORT: 2013-01-16 REPORT NO.: FCS-13-010 SUBJECT: T12-073 Preventive Maintenance Inspections/De-Liming Water Heaters RECOMMENDATION: That Tender T12-073 Preventive Maintenance Inspections/De-Liming Water Heaters, be awarded as follows: Afterglow Ltd., Waterloo, Ontario, at their tendered price of $269,550., plus H.S.T. of $35,041.50 for a total of $304,591.50, for residential service; 4 Seasons Heating & Cooling Ltd., Kitchener, Ontario, at their tendered price of $5,500., plus H.S.T. of $715. for a total of $6,215., for commercial service; for one (1) year with an option to renew for two (2) additional twelve (12) month terms. BACKGROUND: The water hardness in Kitchener is in excess of 25grams per gallon. The hardness of the water contributes to reducing the life of water heaters. The inspection and the removal of lime increases safety and extends the life of water heaters up to an additional three (3) years. Inspection and de-liming also meets our regulatory obligations with Technical Standards and Safety Authority. The estimated average annual spend over the past three (3) years was $142,954. The actual spend will be reflected by budget availability. REPORT: Tenders were advertised publicly on the City of Kitchener website and the Internet through the Ontario Public Buyers Electronic Tendering Information System. Documents were downloaded by twelve (12) interested parties, and by the closing date of Thursday December 13, 2012, four (4) tenders had been received. ···÷ ó ï The following tenders were received: Bid Price Afterglow Ltd. Waterloo ON $312,360.25 * 4 Seasons Heating & Cooling Ltd. Kitchener ON $316,400.00 Infiniti Air Conditioning & Heating Ltd. Kitchener ON $362,679.15 Aire One KW Heating Waterloo ON $842,415.00 The price for residential services has decreased 1.3% from the previous contract and the price for commercial services has decreased 12% from the previous contract. The tender was reviewed by B. Nash, Manager of Customer Relations, and M. Wigzell, Supervisor of Facilities Management, who concur 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 the Rental Water Heaters – Contracted Services Budget. COMMUNITY ENGAGEMENT: Not applicable ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate Services ···÷ ó î