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HomeMy WebLinkAboutFCS-16-095 - T16-058 Two Conventional Cab and Chassis REPORT TO: Committee of the Whole DATE OF MEETING: 2016-06-06 SUBMITTED BY: Michelle Palmer, Director of Supply Services 519-741-2200 ext. 7214 PREPARED BY: Adam Buchholtz, Buyer, 519-741-2200 ext. 7217 WARD(S) INVOLVED: N/A DATE OF REPORT: 2016-05-24 REPORT NO.: FCS-16-095 SUBJECT: T16-058 Two (2) 29,936 kg (66,000 lb.) G.V.W Tandem Rear Axle Conventional Cab and Chassis ___________________________________________________________________________ RECOMMENDATION: That Tender T16-058 Two (2) 29,936 kg (66,000 lb.) G.V.W Tandem Rear Axle Conventional Cab and Chassis, be awarded to Team Truck Centres, Kitchener, Ontario, at their tendered price of $233,888., plus H.S.T. of $30,405.44, for a total of $264,293.44. BACKGROUND: These units will replace one (1) tandem rear axle cab and chassis and one (1) bulldozer (units 505 and 996397 in INS – Operations), as approved for replacement in the 2016 Annual Fleet Equipment Review. By replacing the bulldozer with a tandem rear axle cab and chassis, the City will be able to effectively provide snow and ice control on an additional plow route which was added due to City growth. These units will be also be used for road and sidewalk repair in the summer. The current tandem rear axle cab and chassis is twelve (12) years old with a nine (9) year life cycle. The current bulldozer is sixteen (16) years old with a sixteen (16) year life cycle. Every vehicle that reaches its life cycle is evaluated annually. The age, body, motor, transmission and interior condition is assessed as well as the cost per km and fuel usage per km. After assessment, if the vehicle is deemed too costly to operate and maintain it is scheduled to be replaced. REPORT: *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 1. iv. - 1 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 seven (7) interested parties, and by the closing date of Thursday May 19, 2016, one (1) tender had been received. Tenders were reviewed by M. Born, Manager of Fleet, who concurs with the above recommendation. The following tenders were received: Bid Price Team Truck Centres Kitchener ON $264,293.44 * Historically, the City has received more than one bid on tenders for 29,936 kg (66,000 lb.) G.V.W Tandem Rear Axle Conventional Cab and Chassis. Although, the City only received one bid submission for this tender, pricing is comparable to previous competitive purchases and this submission represents good value for the City. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the city’s strategic vision through the delivery of core service. 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 T16-058 Supply two (2) 29,936 kg (66,000 lb) G.V.W. Tandem Rear Axle Cab and Chassis Estimated Cost for this Tender Tender T16-058 costs including HST $ 264,293.44 less: HST rebate on tender $ (26,289.01) Net Cost Being Awarded $ 238,004.43 A Projected Costs for Additional Outfitting - Total Estimated Cost for this Tender $ 238,004.43 C Budget for this Tender Replacement of unit 505 and one additional unit in Operations $ 230,000.00 B Estimated Deficit for this Tender (B - C) $ (8,004.43) D to be funded from Equipment Reserve Fund 1. iv. - 2 COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. PREVIOUS CONSIDERATION OF THIS MATTER: Not applicable ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate Services 1. iv. - 3