HomeMy WebLinkAboutFCS-13-065 - T13-034 Tandem Rear Axle Cab & Chassis
REPORT TO:Committee of the Whole
DATE OF MEETING:
2013-04-29
SUBMITTED BY: Larry Gordon, Director of Supply Services, 519-741-2200
ext. 7214
PREPARED BY:
Laurie Stecho, Supervisor of Purchasing, 519-741-2200 ext.
7089
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2013-04-22
REPORT NO.: FCS-13-065
SUBJECT:
T13-034 – Three (3) 29,936 kg (66,000 lb) G.V.W. Tandem
Rear Axle Conventional Cab and Chassis
RECOMMENDATION:
That Tender T13-034 – Three (3) 29,936 kg (66,000 lb) G.V.W. Tandem Rear Axle
Highway Sterling Western Star Inc., Ayr,
Conventional Cab & Chassis, be awarded to
Ontario,
at their tendered price of $298,944. plus H.S.T. of $38,862.72 for a total of
$337,806.72.
BACKGROUND:
These units will be replacing 211300, 213300 and 221306 at INS-Operations, as approved for
replacement in the 2013 Annual Fleet Equipment Review. The trucks are used for plowing and
salting in the winter. In the summer they are used for road repairs. They are on a nine (9) year
lifecycle, however as a rule we keep them for 10 to 12 years.
REPORT:
The tender was advertised publicly on the City of Kitchener website and on the Ontario Public
Buyers Electronic Tendering Information System website. Documents were downloaded by
eleven (11) interested parties and by the closing date of Thursday April 4, 2013, four (4) 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
Team Truck Centres Kitchener ON $ 329,847.00
Team Truck Centres Kitchener ON $ 330,186.00
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Highway Sterling Western Star Inc. Ayr ON $ 337,806.72 *
Team Truck Centres Kitchener ON $ 355,946.61
The two lowest bids did not meet the specification of an Eaton Ultra Shift transmission. This
transmission should save the city 5% on fuel with an estimated savings of $625. per year, per
truck, and over a 9 year lifecycle we should see approximately $5,625. per truck. If the price of
fuel increases the savings will increase. This transmission also provides greater operator
control and positive driveline control.
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), is fair and reasonable for a purchase of this scope and the upset limit is
within the budget allowance (B) provided within the budget. Funding for this equipment is included within
the approved capital budget. The estimated deficit (D) will be funded from the Equipment Reserve Fund.
Tender T13-034
Supply three (3) 29,937 kg (66,000 lb.) G.V.W. Tandem Rear Axle Conventional Cabs and Chassis
Estimated Cost for this Tender
Tender T13-034 costs, including HST $ 337,807
less: HST rebate on tender (33,601)
Net Cost Being Awarded 304,205 A
Projected Costs for Additional Outfitting -
Total Estimated Cost for this Tender $ 304,205 C
Budget for this Tender
Replacement of Operations units 211300, 213300 and 221306 $ 300,000 B
Estimated Surplus/(Deficit) for this Tender (B - C) $ (4,205)D
COMMUNITY ENGAGEMENT:
Not applicable
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate
Services
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