HomeMy WebLinkAboutFCS-16-148 - P16-083 Supply Two Used Motor Graders Year 2004 or Newer
REPORT TO: Committee of the Whole
DATE OF MEETING: 2016-09-26
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: 2016-09-12
REPORT NO.: FCS-16-148
SUBJECT: P16-083 Supply Two (2) Used Motor Graders, Year 2004 or
Newer
___________________________________________________________________________
RECOMMENDATION:
That Proposal P16-083 Supply Two (2) Used Motor Graders, Year 2004 or Newer,
be awarded as follows;
Unit “A”, be awarded to 798826 Ontario Inc. o/a Tri City Equipment, Guelph,
Ontario; a their proposed price of $129,000., plus H.S.T. of $16,770., for a total of
$145,770.; and,
Unit “B”, be awarded to Toromont Cat, Cambridge, Ontario, at their proposed
price of $92,800., plus H.S.T. of $12,064., for a total of $104,864.
BACKGROUND:
Through the 2016 Annual Equipment Review staff identified the need for two (2) motor
graders. It was identified that units 604 (Bombardier Municipal Tractor) and 497
(Caterpillar 70 Scraper) were underutilized and could be replaced with used motor
graders. The graders will be used for snow plowing operations during the winter
months. Unit 604 is thirteen (13) years old with an eight (8) year life cycle and unit 497
is fifty-five (55) years old with no definitive life cycle.
Every piece of equipment that reaches its life cycle is evaluated annually. Equipment is
visually inspected on condition as well as cost to maintain, cost per kilometer, fuel
usage per kilometer and utilization. After assessment, if the unit is deemed too costly to
maintain and/or is underutilized, it is scheduled to be replaced.
*** 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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REPORT:
This Proposal was advertised publicly on the City of Kitchener website and the Internet
through the Ontario Public Buyers Electronic Tendering Information System. Proposal
documents were downloaded by seven (7) interested parties, and by the closing date of
Friday July 29, 2016, four (4) proposals had been received.
The proposals were reviewed and rated by M. Born, Manager Fleet Planning, B.
Kurschinski, Truck and Coach Technician and A. Buchholtz, Buyer, who concur with the
above recommendation.
The following proposals were received:
798826 Ontario Inc. o/a Tri City Equipment Guelph ON *
Nortrax Canada Inc. Stoney Creek ON
Toromont Cat – Proposal A Cambridge ON *
Toromont Cat – Proposal B Cambridge ON
Each proposal received was for one used motor grader.
The proposals were rated on the following criteria:
Acquisition Cost
Conformity to Bid Specifications
Year of Grader
Inspection of Grader
Hours on Grader
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.
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FINANCIAL IMPLICATIONS:
The net cost for this tender (A), is fair and reasonable for a purchase of this scope
and the upset limit is within the budget allowance (B) provided within the budget.
Funding for this equipment is included within the approved capital budget. The
estimated surplus (D) will remain within the Equipment Reserve Fund to fund future
equipment purchases.
Tender P16-083
Supply two (2) Used Motor Graders
Estimated Cost for this Tender
Tender P16-083 costs including optional equipment and HST 250,634.00
less: HST rebate (24,930.32)
Net Cost Being Awarded 225,703.68 A
Projected Costs for Additional Outfitting 6,000.00
Total Estimated Cost for this Tender $231,703.68 C
Budget for this Tender
Replacement of units 604 and 497 in Operations $260,000.00 B
Estimated Surplus/(Deficit) for this Tender (B - C) 28,296.32 D
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
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