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HomeMy WebLinkAboutFCS-16-100 - T16-018 Fire Pumpers REPORT TO: Committee of the Whole DATE OF MEETING: 2016-06-27 SUBMITTED BY: Michelle Palmer, Director of Supply Services 519-741-2200 ext. 7214 PREPARED BY: Ryan Scott, Buyer, 519-741-2200 ext. 7216 WARD(S) INVOLVED: N/A DATE OF REPORT: 2016-06-09 REPORT NO.: FCS-16-100 SUBJECT: T16-018 Three (3) Triple Combination Fire Pumpers ___________________________________________________________________________ RECOMMENDATION: That Tender T16-018 Three (3) Triple Combination Fire Pumpers, be awarded to Resqtech Systems Inc., Woodstock, Ontario, at their tendered price, in US dollars, of $1,763,502., plus H.S.T. of $229,255.26, for a total of $1,992,757.20 USD. BACKGROUND: Three (3) triple combination fire pumpers (units 4528, 4531 and 4532) were approved for replacement in the 2016 Fire Department Fleet Capital Forecast. Production time for triple combination fire pumpers is approximately fourteen (14) months. The first triple combination fire pumper being replaced (unit 4528) is thirteen years old with a thirteen year life cycle. This unit has been on reserve duty for the past five (5) years and will be sold upon receipt of the first new unit (expected delivery is the third quarter of 2017). The second and third triple combination fire pumpers (units 4531 and 4532) will be eleven years old upon receipt of the remaining two triple combination fire pumpers (expected delivery is in the first quarter of 2018) and will then be retained for reserve duty. Every vehicle that has reached its life cycle is evaluated on age, body, motor, transmission, and mechanical equipment as specific to fire operations. After assessment, if the vehicle is deemed too costly to operate and maintain it is scheduled to be replaced. All three (3) fire pumpers being replaced do not exhibit safety features that are present in modern day apparatus, such as airbags, stability control and rollover protection. *** 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 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 twelve (12) interested parties, and by the closing date of Thursday May 12, 2016, two (2) tenders had been received. Tenders were reviewed by B. Gilmore, Deputy Fire Chief, D. Coghlin, Master Mechanic – Firefighter and R. Scott, Buyer, who concur with the above recommendation. The following tenders were received: Bid Price Resqtech Systems Inc. Woodstock ON $1,992,757.20 USD * Metz Fire & Rescue Guelph ON $2,154,585.69 USD Tender pricing was requested in US dollars in order to obtain competitive bids without additional margins being added to account for currency fluctuations. Design changes were made to the specifications to reduce costs both on initial purchase and maintenance costs over the life cycle (example: removal of automated ladder storage) while improving functionality and safety. Tendering of all three fire pumpers at once allowed the City to realize an estimated cost saving of $210,376., over the life cycle of the three (3) fire pumpers. These savings are seen through contract administration, specification development, engineering costs, price increases, inspection trips, training of suppression staff on each apparatus, training of mechanical staff on diagnosis and repair, and parts inventory. Through this tender, the City of Waterloo and the City of Cambridge have the option to purchase the same fire pumpers. If the City of Waterloo and/or the City of Cambridge exercise their option to purchase as per the City of Kitchener’s terms and conditions, prior to December 1, 2016, the City of Kitchener will realize additional savings. 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 project of this scope and the upset limit is within the funding available (B) for this project. Funding for this project is included within the approved capital budget. The estimated surplus (D) will remain in the account to fund future vehicles and equipment. 1.i. - 2 Financial Summary for Tender T16-018 Estimated Cost * Tender T16-018 costs, including HST in US Dollars $ 1,992,757.20 Exchange Rate at May 26, 2016 1.30 Tender T16-018 costs, including HST converted to Cdn 2,590,584.36 less: HST rebate on tender (257,682.90) Net Cost Being Awarded $ 2,332,901.46 A Costs Incurred to Date - Projected Costs for Equipment to Outfit the Vehicles 528,450.00 Estimated Cost* $ 2,861,351.46 C Budget for the above vehicles and equipment Fire – Major Equipment/Fleet 2,946,000.00 Total Budget for these Vehicles $ 2,946,000.00 B Estimated Surplus (B - C) $ 84,648.54 D * This tender is in US dollars and has been converted to CA dollars using the May 26, 2016 exchange rate of $1.30.The actual cost will be based on the exchange rate at time of delivery. Resqtech Systems Inc.’s HST number (for recovery purposes) is 10448-5800RT0001. 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.i. - 3