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HomeMy WebLinkAboutFCS-14-081 - T14-034 Electric Gasoline Golf Carts REPORT TO: Special Council DATE OF MEETING: 2014-05-12 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: 2014-04-28 REPORT NO.: FCS-14-081 SUBJECT: T14-034 Electric & Gasoline Powered Golf Carts ___________________________________________________________________________ RECOMMENDATION: , That Tender T14-034 Electric & Gasoline Powered Golf Cartsfor thirty-two (32) Golf Cartsbe Skyway Lawn Equipment Limited, Stoney Creek, Ontario awarded to , at their corrected tendered price of $98,300., plus H.S.T. of $12,779., for a total of $111,079. BACKGROUND: Golf carts are replaced on an annual basis based on a condition assessment. Units are prioritized for replacement based on maintenance costs and the extent to which they are out of service. 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 six (6) interested parties, and by the closing date of Thursday April 3, 2014, four (4) tenders had been received. The following tenders were received: Corrected Bid Price Bid Price AGT Electric Cars Burlington ON $ 71,190.00 Turf Care Products Canada Newmarket ON $108,819.00 Skyway Lawn Equipment Ltd. Stoney Creek ON $110,079.00 $111,079.00 * G.C. Duke Equipment Ltd. Burlington ON $120,390.20 The low bid received from AGT Electric Cars is a partial bid for electric carts only and are higher priced than the others. The second bid from Turf Care Products Canada carts does not meet suspension, steering, and weight specifications. The third bid received from Skyway Lawn Equipment had a mathematical error that has been corrected and is the lowest combined price for electric and gasoline carts complete to specification. The price for gas powered carts has increased by 21%. The price for electric carts has increased by 9%. The tender was reviewed by T. Doering, Supervisor, Golf Grounds, 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: The net cost for this tender (A), is fair and reasonable for a project of this scope and the upset limit is within the budget allowance (B) provided within the budget. Funding for this project is included within the approved budget. The estimated surplus (D) will remain in the golf reserve to fund future golf cart replacement, given the annual requirements vary from year to year. Financial Summary for Tender T14-034 Electric and Gasoline Powered Golf Carts Estimated Cost Tender T14-034 costs, including HST 111,079.00 less: HST rebate on tender (12,779.00) Net Cost Being Awarded 98,300.00 A Costs Incurred to Date - Projected Costs - Estimated Cost 98,300.00 C Budget for this Phase of Work 123,352.00 B Estimated Surplus/(Deficit) (B - C) 25,052.00 D COMMUNITY ENGAGEMENT: Potential vendors are informed of bid opportunities through the public posting of bid documents as outlined in the City’s Purchasing By-Law. Vendors, local media and the general public are informed of purchasing recommendations to Council through the public reports which are included with the Council agenda the week prior to the Council meeting. ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate Services