HomeMy WebLinkAboutFCS-15-118 - T15-030 Propane Hd5 Bulk and Cylinders
REPORT TO: Committee of the Whole
DATE OF MEETING: 2015-08-24
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: 2015-08-07
REPORT NO.: FCS-15-118
SUBJECT: T15-030 – Propane: Hd5 Bulk & Cylinders (Cooperative)
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RECOMMENDATION:
That Tender T15-030 – Propane: Hd5 Bulk & Cylinders (Cooperative), be awarded to
McRobert Fuels, Strathroy, Ontario, at their tendered price of $272,201.30 plus H.S.T. of
$35,386.17, for a total of $307,587.47, representing the City’s portion of the total bid price,
for a five (5) year term of contract.
BACKGROUND:
This is a co-operative tender issued by the City of Kitchener (Lead Agency) on behalf of the Co-
operative Purchasing Group of Waterloo Region (CPGWR). The participating agencies are:
The City of Kitchener, The Township of Wellesley, The Grand River Conservation Authority, and
The Region of Waterloo. At any time during the course of the contract, other members of the
CPGWR may elect to participate in this contract.
Propane supply and delivery is required in various cylinder sizes, also via bulk replenishment
into stationary tanks, and on contingency from a local re-fueling facility, where staff may refill
trailer mounted propane vessels. Product is needed primarily for cremation services, and for
powering and heating heritage buildings, park washrooms, concessions, and for the powering of
dual fuel service vehicles and ice re-surfacers as well as other maintenance, repair and
operational equipment such as trailer mounted pressure washers, welders, fork lifts, and
bitumen hot boxes.
This tender is based on the variable “weekly” rack price, coupled with a fixed profit margin per
litre.
The average annual spend over the past four (4) years was $46,751.68. The actual spend will
depend on the level of activity throughout the term of the contract. The difference in the tender
value and the award recommendation is due to the requirements of the other participating
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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agencies: Township of Wellesley, Grand River Conservation Authority and the Region of
Waterloo.
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 five (5) interested parties, and by the closing date of Thursday July 9, 2015, three (3) tenders
had been received.
The following tenders were received:
Bid Price Corrected Price
McRobert Fuels Strathroy ON $575,059.34 $575,056.85*
Superior Propane Guelph ON $627,687.37 $628,700.56
Top Fuelers Incorporated Kitchener ON Incomplete
The bid prices were verified for accuracy and adjusted for arithmetic errors.
.
The bid submitted by Top Fuelers Incorporated did not provide for the provision of a fueling
station site and pricing for all items, resulting in an incomplete submission. As a result, the tender
submission was deemed non-compliant and was disqualified.
The fixed profit component of the per litre price for product remains unchanged from the
previous tender of 2010, however, the commodity rack price, has experienced a trade price
increase of 145% since 2010.
There will be a temporary surge in propane spend due to planned service vehicle conversions
into dual fuel gasoline and propane with the first lot of vehicles occurring in September 2015.
There will also be a reduction in spend as natural gas service will be extended to the
Williamsburg Cemetery by fall 2016.
The tender was reviewed by S. Rudak, Buyer, on behalf of the City and the Cooperative.
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:
Funding will be provided from various operating accounts as required.
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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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