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HomeMy WebLinkAboutFIN-18-021 - T18-114 Snow and Ice Removal Equipment to be mounted on a Tandem Rear Axle CabREPORT TO:Committee of the Whole DATE OF MEETING:2018-08-27 SUBMITTED BY:Laurie Stecho, Supervisor of Purchasing,519-741-2200 ext. 7089 PREPARED BY:ScottColquhoun,Buyer519-741-2200 ext. 7217 WARD (S) INVOLVED:N/A DATE OF REPORT:2018-08-15 REPORT NO.:FIN-18-021 SUBJECT:T18-114 Snow and Ice Removal Equipment to be Mounted on a Tandem Rear Axle Cab __________________________________________________________________________________________ RECOMMENDATION: That Tender T18-114Snow and Ice Removal Equipment to be Mounted on a Tandem Rear Axle Cab,be awarded to Viking Cives Ltd,Mount Forest,Ontario, at their tendered price of $128,190., plus H.S.T. of $16,664.70, for a total of $144,854.70. BACKGROUND: This snow and ice removal equipment will be installedon one (1)new unit 18522 which replaced unit 520 forINS Operations,as approved for replacement in the 2017Annual Fleet Equipment Review.Thisunit will be used for snow and ice removaland has a ten (10) year lifecycle. 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 PurchasingBy-law2017-106, 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. Tenders were advertised publicly on the City of Kitchenerwebsite. Documents were downloaded by two (2)interested parties and by the closing date of Friday July6, 2018,one(1) tender had been received. The following tenders were received: BidPrice Viking Cives Ltd.Mount Forest ON $144,854.70* ***This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994for assistance. 1.i - 1 The tender was reviewed by M. Born, Manager of Fleet, who concurs with the above recommendation. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: the delivery of core service. FINANCIAL IMPLICATIONS: The net cost for this tender (A), is fair and reasonable for a purchase of this scope, but the upset limit is beyond the allowance provided within the budget (B). Funding for this equipment is included within the approved capital budget. The estimated deficit (D) will be funded from previous surpluses that have been closed out to the Equipment Reserve Fund. Tender T18-114 Supply and Install Snow and Ice Removal Equipment to be Mounted on a Tandem Rear Axle Cab Estimated Cost for this Tender Tender T18-114 costs including optional equipment and HST$ 144,854.70 less: HST rebate on tender(14,408.56) Net Cost Being Awarded130,446.14 A Projected Costs for Additional Outfitting- Total Estimated Cost for this Tender$ 130,446.14 C Budget for this Tender Additional outfitting for units 520 in INS -Roads & Traffic$114,064.35 B Estimated Surplus/(Deficit) for this Tender (B -C)(16,381.80)D to be funded from Equipment Reserve Fund COMMUNITY ENGAGEMENT: INFORM council / committee meeting. ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department 1.i - 2