HomeMy WebLinkAboutFCS-13-192 - T13-091 - Water HeatersStaff Report
Finance and Corporate Services Department
REPORT TO: Committee of the Whole
DATE OF MEETING: 2013 -12 -09
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SUBMITTED BY: Larry Gordon, Director of Supply Services, 519 - 741 -2200
ext. 7214
PREPARED BY: Steve Rudak, Buyer, 519 - 741 -2200 ext. 7213
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2013 -11 -28
REPORT NO.: FCS -13 -192
SUBJECT: T13 -091 Water Heater: NG Residential Regular Tank
Energy Star Rated EF> =0.80
RECOMMENDATION:
That Tender T13 -091 Water Heater: NG Residential Regular Tank Energy Star Rated EF >=
0.80, be awarded to Rheem Canada Limited, Brampton, Ontario, at their tendered price of
$1,000,000., plus H.S.T. of $130,000., for a total of $1,130,000.
BACKGROUND:
Water heaters are an annual requirement in support of the City's rental water heater program.
Kitchener Utilities, is preparing for the 2014 SB -12 building code amendment and is acting
proactively to offer the latest EnergySTAR rated water heaters in the most popular residential
sizes and design. Rated at 0.80 efficiency condensating, the heaters are of a new design to the
marketplace and contractors will require these tanks to qualify new builds. The tanks are not
replacing others models currently purchased and in use, therefore, no historical price
comparison data is available.
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 thirteen (13) interested parties, and by the closing date of Thursday November 21, 2013, two
(2) tenders had been received.
The following tenders were received: Bid Price
Rheem Canada Limited Brampton ON $1,130,000.00
A.O. Smith Enterprises Limited Fergus ON $1,626,635.00
Tenders were reviewed by B. Nash, Manager of Customer Relations, who concurs with the
above recommendation.
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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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