HomeMy WebLinkAboutFCS-14-149 - T14-077 - Sand Salt SpreadersStaff Report
rTC.�r R finance and Corporate Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: 2014 -08 -25
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 -08 -12
REPORT NO.: FCS -14 -149
SUBJECT: T14 -077 — Three (3) Sand /Salt Spreader Bodies with Prewetting
and Anti -Icing
RECOMMENDATION:
That Tender T14 -077- Three (3) Sand /Salt Spreader Bodies with Prewetting and Anti - Icing,
be awarded to Joe Johnson Equipment Inc., Innisfil, Ontario, at their tendered price of
$329,088., plus H.S.T. of $42,781.44, for a total of $371,869.44.
BACKGROUND:
These units will replace 221500, 221502 and 221503 at INS — Operations, as approved for
replacement in the 2014 Annual Fleet Equipment Review. The units are twelve (12) years old
with a ten (10) year lifecycle.
These units are used for salting and anti -icing roads /streets.
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 thirteen (13) interested parties, and by the closing date of Thursday August 7,
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:
Amaco Construction Equipment Mississauga ON
Joe Johnson Equipment Inc. Innisfil ON
Bid Price
$ 296,719.92
$ 371,869.44
The lowest bid submitted by Amaco Construction Equipment Inc., did not meet the
specifications in forty -nine (49) areas. Examples of areas that did not meet specification are as
follows:
1. No man door on top of the screen. If debris, such as chunks of wood or rocks, is stuck in the
hopper, the unit needs to be brought into the garage in order to lift the whole screen off to
remove the debris.
2. No ladder that meets health and safety requirements. The ladder is a vertical ladder going up
the side of the hopper.
3. The calibration of salt being distributed is not accurate and cannot strip spread. (Strip
spreading is placing a line of salt down the crown of a road, which allows you to use less salt)
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 -077
Supply three (3) Sand /Salt Spreader Bodies with Prewetting and Anti -Icing
Estimated Cost for this Tender
Tender T14 -077 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 221500, 221502 and 221503
Estimated Surplus /(Deficit) for this Tender (B - C)
$371,869.44
(36,989.49)
334,879.95 A
6,000.00
340,879.95 C
350,000.00 B
9,120.05 D
I.M. - 2
COMMUNITY ENGAGEMENT:
INFORM - 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