HomeMy WebLinkAboutFCS-14-112 - T14-061 Desktop ComputersStaff 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: Ryan Scott, Buyer, 519 - 741 -2200 ext. 7216
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2014 -06 -05
REPORT NO.: FCS -14 -112
SUBJECT: T14 -061 — Desktop Computers
RECOMMENDATION:
That Tender T14 -061 — Desktop Computers, be awarded to Amsdell Inc., Richmond Hill,
Ontario, at their adjusted tendered price of $157,920. plus H.S.T. of $20,529.60 for a total of
$178,449.60 with an option to renew for two (2) additional twelve (12) month terms.
BACKGROUND:
Desktop computers are upgraded on a five -year renewal cycle. We currently have
approximately 950 computers used as a daily business tool for City of Kitchener employees.
This year we plan to renew 200 computers during the 2014 personal computer (PC) rollout
project which represents 21 % of the personal computer fleet.
In a 2009 survey of other municipalities, only 10% of the municipalities (including Kitchener) had
a five year renewal cycle. 57% upgraded their PC's on a four year cycle and 30% upgraded
their PC on a three year cycle. This survey included 30 respondent municipalities, of which the
vast majority were from Ontario. The City of Kitchener has been able to make a five year
renewal cycle work by carefully specifying system components that will last the required lifetime.
The average annual spend over the past three (3) years was $153,482.00.
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 twenty -six (26) interested parties, and by the closing date of Thursday June 5, 2014, seven
(7) tenders had been received.
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The following tenders were received:
Amsdell Inc.
Hypertec Systems
Open Decisions
SHI Canada ULC
Abtron Computer Services Inc.
Microcad Computer Corporation
Open Decisions
Richmond Hill ON
Ottawa ON
Markham ON
Orangeville ON
Downsview ON
London ON
Markham ON
PH Prira
$178,088.00
$193,004.00
$203,174.00
$207,016.00
$207,938.08
$238,818.72
$464,721.54
Adjusted Bid
Price
$178,449.60 *
Amsdell Inc. bid price was adjusted to include the Ontario Environmental Disposal Fee.
The price for desktop computers has increased 7% from the previous contract.
The tender was reviewed by M. McLaughlin, Supervisor of Client Services - Help Desk, 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 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 Computer Reserve Fund to fund future computer equipment purchases.
Tender T14 -061 — Desktop Computers
Estimated Cost for this Tender
Tender T14 -061 costs including HST
less: HST rebate on tender
Net Cost Being Awarded
Projected Costs for Optional Input Devices and Software
Platform
Total Estimated Cost for this Tender
Budget for this Tender
Estimated Surplus /(Deficit) for this Tender (B - C)
$ 178,450
(17,750)
160,700 A
37,549
$ 198,249 C
$ 204,020 B
$ 5,771 D
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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
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