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HomeMy WebLinkAboutFCS-16-111 - P16-060 Authorized Contractors Kitchener Utilities Naural Gas Rental Water Heater Program 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: Steve Rudak, Buyer, 519-741-2200 ext. 7213 WARD(S) INVOLVED: All DATE OF REPORT: 2016-06-20 REPORT NO.: FCS-16-111 SUBJECT: P16-060 Authorized Contractors: Kitchener Utilities Natural Gas Rental Water Heater Program ___________________________________________________________________________ RECOMMENDATION: That Proposal P16-060 Authorized Contractors: Kitchener Utilities Natural Gas Rental Water Heater Program, be awarded to the following contractors: 1458013 Ontario Inc. o/a Aire One Heating & Cooling, Kitchener, Ontario; and, 4 Seasons Heating & Cooling Ltd., Waterloo, Ontario. at the City’s established allowance rates for five (5) years, with an option to renew for one (1) additional twelve (12) month term. BACKGROUND: Kitchener Utilities which requires a resource of contractors for the provision of water heater installation, replacement, maintenance, and repair services. The contractors receive work referrals from Kitchener Utilities for this requirement replacing approximately 3,400 water heaters annually. This proposal establishes contractors to support the rental water heater program. The annual estimated spend over the previous five (5) years was $1,271,465. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 1.ix. - 1 REPORT: Proposals 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 six (6) interested parties, and by the closing date of Wednesday June 8, 2016, three (3) proposals had been received. The following proposals were received: 1458013 Ontario Inc. o/a Aire One Heating & Cooling Kitchener ON * 4 Seasons Heating & Cooling Ltd. Waterloo ON * Tiger Plumbing Inc. Waterloo ON The proposal received from Tiger Plumbing Inc. does not meet the mandatory requirement of the provision of weekend and holiday service availability and was disqualified. Based on the resources of the vendors being awarded to, there remains a shortfall of available capacity. Therefore, the City will issue an additional bid opportunity seeking additional contractors to ensure the City has the contracted capacity required to ensure a timely and valued service experience to the citizen for rental water heater installations. The proposals were reviewed by B. Nash, Manager of Customer Relations, and S. Rudak, Buyer, who concur with the above recommendation. The established allowance rates for water heater installations has increased 1.95% from the 2011 contract. 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: Water heaters are a capital asset and their installation/replacement is funded through rental rates. 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 1.ix. - 2 ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate Services 1.ix. - 3