HomeMy WebLinkAboutFCS-15-067 - T15-020 Water Heaters Residential Regular TankStaff Report
rTC.�r R finance and Corporate Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: 2015 -05 -11
SUBMITTED BY: Michelle Palmer - Novakovic, Director of Supply Services,
519- 741 -2200 ext. 7214
PREPARED BY: Steve Rudak, Buyer, 519 - 741 -2200 ext.7213
WARD(S) INVOLVED: All
DATE OF REPORT: 2015 -04 -22
REPORT NO.: FCS -15 -067
SUBJECT: T15 -020 Water Heaters: Residential Regular Tank
RECOMMENDATION:
That Tender T15 -020 Water Heaters: Residential Regular Tank, be awarded as follows:
A.O. Smith Enterprises Ltd., Fergus, Ontario, Giant Factories Inc., Montreal, Quebec, and
Rheem Canada Ltd., Brampton, Ontario, at their tendered unit prices of Schedule "D ",
with option to renew for two (2) additional twelve (12) month terms.
BACKGROUND:
Water Heaters are an annual requirement in support of the City's rental water heater program.
The rental water heater program was established in 1989 to ensure affordable hot water service
for Kitchener residents. The original program goals were to service Kitchener residents' hot
water needs by delivering a program with economical rental rates and great customer service.
Kitchener Utilities offer a full range of water heaters with the latest technologies including high
efficiency Energy Star compliant water heaters.
The average annual spend over the past three (3) years was $1,583,544.11. The actual spend
will depend on the level of activity throughout the term of the contract.
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 nine (9) interested parties and by the closing date of Thursday April 2, 2015, three (3)
tenders had been received.
* ** This information is available in accessible formats upon request. * **
Please call 519- 741 -2345 or TTY 1- 866 - 969 -9994 for assistance.
The following tenders were received: Bid Price Bid Price
Schedule `A' Schedule `D'
6 -Year Warranty 8 -Year Warranty
Giant Factories Inc. Montreal PQ
A.O. Smith Enterprises Ltd. Fergus ON
Rheem Canada Ltd. Brampton ON
$2,277,277.19
$2,515,103.15
$2,704,355.55
$2,277,277.19 *
$2,611,237.90 *
$2,813,700.00 *
Award is split between three (3) vendors to the lowest price per tank with an eight (8) year
warranty and complete to specification as follows: A.O. Smith Enterprises Ltd., Hi -input direct
vent and Polaris tanks, Giant Factories Inc., Conventional vent, Power vent, Direct vent and Hi-
input/output tanks, and Rheem Canada Ltd., Hi- efficiency condensing power direct vent tanks.
The price for water heaters has increased 15.7% from the previous 2012 contract, based on the
unit price change across all units. The eight year warranty represents the most favourable
value to the City. Water heater prices have increased due to prices being held firm for three (3)
years and to the current US dollar exchange rate.
Tenders were reviewed by W. Malcolm, Director of Utilities and B. Nash, Manager of Customer
Relations, who concur 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:
Water heaters are a capital asset and their installation /replacement is funded through rental
rates.
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
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