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HomeMy WebLinkAboutFCS-16-181 - T16-087 Inter-Facility Mail Services REPORT TO: Committee of the Whole DATE OF MEETING: 2016-11-21 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: N/A DATE OF REPORT: 2016-11-10 REPORT NO.: FCS-16-181 SUBJECT: T16-087 Inter-Facility Mail Services ___________________________________________________________________________ RECOMMENDATION: That Tender T16-087 Inter-Facility Mail Services, be awarded to J.M. Finnegan Cartage Limited o/a Crown Courier, Kitchener, Ontario, at their tendered price of $50,504.30, plus H.S.T. of $6,565.56, for a total of $57,069.86, for a one (1) year term, with an option to renew for four (4) additional twelve (12) month terms. BACKGROUND: The City requires daily, timely mail service by a qualified courier, to and from City Hall, City facilities and Canada Post. On a weekly basis, packages are also required to be delivered to Council members and to other public agencies throughout the region. The average annual spend over the past three (3) years was $49,510.87, before taxes. The actual spend will depend on the level of activity throughout the term of the contract. 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 six (6) interested parties and by the closing date of Thursday October 27, 2016, two (2) tenders had been received. The following tenders were received: Bid Price J.M. Finnegan Cartage Limited o/a Crown CourierKitchener ON $57,069.86 * *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 1. vi. - 1 Medical Courier Services (1708998 Ontario Limited) Kitchener ON $60,431.50 The price for courier services has decreased 3.2% from the 2014 contract. The tender was reviewed by M. Santos, Manager Corporate Records, Archive & Mail Services and S. Rudak, Buyer, who concur with the above recommendation. 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 and the upset limit is within the budget allowance (B) provided within the budget. Funding for this service is included within the approved operating budget. The estimated surplus (D) will be closed out to the tax stabilization reserve fund. Tender T16-087 Supply Inter-Facility Mail Services Estimated Cost for this Tender Tender T16-087 costs, including HST $ 57,069.86 less: HST rebate on tender (5,676.68) Net Cost Being Awarded 51,393.18 A Projected Additional Costs Total Estimated Cost for this Tender 51,393.18 C Budget for this Tender Mailroom Contract Services Operating Budget 52,250.00 B Estimated Surplus/(Deficit) for this tender (B - C) 856.82 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 1. vi. - 2