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HomeMy WebLinkAboutFCS-15-094 - T15-053 Industrial Tractor with Front End Loader REPORT TO: Committee of the Whole DATE OF MEETING: 2015-06-29 SUBMITTED BY: Michelle Palmer-Novakovic, 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: 2015-06-02 REPORT NO.: FCS-15-094 SUBJECT: T15-053 One 80 kW (107 net peak power to ISO 9249) Standard All-Wheel Drive, Rubber Tired Industrial Tractor with Front End Loader and an extendable Backhoe ___________________________________________________________________________ RECOMMENDATION: That Tender T15-053 One 80 kW (107 net peak power to ISO 9249) Standard All-Wheel Drive, Rubber Tired Industrial Tractor with Front End Loader and an extendable Backhoe be awarded to Toromont, Cambridge, Ontario, at their tendered price of $171,600., plus H.S.T. of $22,308., for a total of $193,908. BACKGROUND: This will be an additional unit for INS – Operations and was approved for purchase in the 2015 Annual Fleet Equipment Review. During Fleet Equipment Review, it was identified that the City Fleet currently does not have capacity to be available for all projects that require excavation. The additional unit will increase productivity and reduce the cost per repair by decreasing the amount of time spent per excavation. This unit will be used for road repairs, sewer repairs and utility repairs. It is expected that this unit will have a 10-year lifecycle. The deficit is due to the budget estimate being completed prior to the change in the Canadian / US dollar exchange rate. The deficit will be funded from the Equipment Reserve Fund. REPORT: This Tender was advertised publicly on the City of Kitchener website. Documents were downloaded by seven (7) interested parties and by the closing date of Thursday May 21, 2015, three (3) tenders had been received. Tenders were reviewed by M. Born, Manager of Fleet, who concurs with the above recommendation. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 1.i. - 1 The following tenders were received: Bid Price Nortrax Canada Inc. Stoney Creek ON $186,183.32 Toromont Cambridge ON $193,908.00 * Strongco L.P. Brampton ON $216,395.00 The low bid submitted by Nortrax Canada Inc. did not include the cost for extended warranty in their bid price. As a result, the tender submission was deemed non-compliant and was disqualified. 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, but the upset limit is beyond the allowance provided within the budget (B). Funding for this equipment is included within the approved capital budget. The estimated deficit (D) will be funded from previous surpluses that have been closed out to the Equipment Reserve Fund. Tender T15-053 Supply One (1) 80kw Rubber Tired Backhoe Estimated Cost for this Tender Tender T15-053 costs including HST $ 193,908.00 less: HST rebate on tender $ (19,287.84) Net Cost Being Awarded $ 174,620.16 A Projected Costs for Additional Outfitting Total Estimated Cost for this Tender $ 174,620.16 C Budget for this Tender Additional unit for Operations $ 150,000.00 B Estimated Surplus/(Deficit) for this Tender (B - C), to be funded from Equipment Reserve Fund $ (24,620.16) D 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 1.i. - 2 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 1.i. - 3