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HomeMy WebLinkAboutFCS-14-107 - T14-059 Industrial Tractors with Front End LoaderStaff Report rTC.�r R finance and Corporate Services Department www.kitchener.ca REPORT TO: Committee of the Whole DATE OF MEETING: 2014 -06 -16 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: 2014 -06 -02 REPORT NO.: FCS -14 -107 SUBJECT: T14 -059 Two (2) 59 kw (79 net hp) All -Wheel Drive Rubber Tired Industrial Tractor with Front -End Loader RECOMMENDATION: That Tender T14 -059 Two (2) 59 kw (79 net hp) All -Wheel Drive Rubber Tired Industrial Tractor with Front -End Loader, be awarded to Strongco Limited Partnership, Kitchener, Ontario, at their tendered price of $165,800., plus H.S.T. of $21,554., for a total of $187,354. BACKGROUND: These units will replace 202500 and 212500 for INS — Operations, as approved for replacement in the 2014 Annual Fleet Equipment Review. The current industrial tractors are thirteen (13) and fourteen (14) years old with an eleven (11) year lifecycle. These units are used for ball diamond work, general landscaping and snow removal. REPORT: This Tender was 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 May 29, 2014, two (2) tenders had been received. Tenders were reviewed by M. Born, Manager of Fleet, who concurs with the above recommendation. The following tenders were received: Strongco Limited Partnership Kitchener ON Nortrax Canada Inc. Stoney Creek ON Bid Price $ 187,354.00 $ 209,298.60 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 surplus (D) will remain within the Equipment Reserve Fund to fund future equipment purchases. Tender T14 -059 Estimated Cost for this Tender Tender T14 -059 costs including HST less: HST rebate on tender Net Cost Being Awarded Projected Costs for Additional Outfitting Total Estimated Cost for this Tender Budget for this Tender Replacement of Operations units 202500 and 212500 $ 187,354 (18,636; 168,718 A 5,000 $ 173,718 C $ 188,000 B Estimated Surplus /(Deficit) for this Tender (B - C) $ 14,282 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 I.M. - 2