HomeMy WebLinkAboutFCS-17-200 - T17-130 Vehicle Rust Control Services
REPORT TO: Committee of the Whole
DATE OF MEETING: 2017-12-11
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: 2017-11-16
REPORT NO.: FCS-17-200
SUBJECT:T17-130VehicleRust Control Services
___________________________________________________________________________
RECOMMENDATION:
That Tender T17-130 Vehicle Rust Control Services, be awarded to Nick Bergsma
Enterprises Ltd. O/A Krown Rust Control, Kitchener, Ontario, at their tendered
price of $55,690., plus H.S.T. of $7,239.70, for a total of $62,929.70, for a one (1)
year term, with an option to renew for four (4) additional twelve (12) month terms.
BACKGROUND:
All fleet vehicles are rust sprayed annually to ensure they are free from corrosion. This
ongoing maintenance keeps the vehicles body, undercarriage and mechanical
components in good working order. This rust control service allows City vehicles to
reach the intended life cycles, and in most cases, go beyond.
The average annual spend over the past three (3) years was $31,853.27, before taxes.
The actual annual spend is anticipated to be in alignment with the average annual
spend, but will depend on the level of activity throughout the term of the contract.
REPORT:
The value of this purchase falls below the Council approval threshold of the new
purchasing by-law. As per clause 170.7.3(d) of the new by-law, it states when only one
bid is received in response to a solicitation, the Director of Supply Services shall submit
a report to Council recommending award.
*** 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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This Tender was advertised publicly on the City of Kitchener website. Documents were
downloaded by one (1) interested party and by the closing date of Thursday November
16, 2017, one (1) tender had been received.
This Tender was reviewed by M. Born, Manager of Fleet, who concurs with the above
recommendation.
The following tender was received:
Bid Price
Nick Bergsma Enterprises Ltd.
O/A Krown Rust ControlKitchener ON 62,929.70*
The contract is based on unit pricing for all types of vehicles with an estimated number
of vehicles receiving the rust control service. The unit pricing by vehicle type has
remained the same from the 2014 tendered pricing. Although the bid price is higher
than the average annual spend, this is due to the estimated volume which was included
in the tender document and it is anticipated that the actual spend will be in alignment
with the average annual spend.
Under the City’s requirements, the contractor utilizes a mobile trailer providing on-site
service to meet the demand of the number of vehicles requiring rust prevention and
electrical corrosion resistance which limits the competition. In the previous 2014
contract for vehicle rust control services, two submissions were received for this bid
opportunity.
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:
Funding for this activity is included in the Fleet budget. All Fleet costs are charged to
City divisions through equipment charges, so City divisions with equipment cover the
costs of this activity within operating budgets.
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
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ACKNOWLEDGED BY: Lesley MacDonald, Acting Deputy CAO, Finance and
Corporate Services
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