HomeMy WebLinkAboutFIN-19-027 - T19-048 Natural Gas and Electric Residential Water HeatersREPORT TO:Committee of the Whole
DATE OF MEETING:2019-04-01
SUBMITTED BY:Margaret Fisher, Director of Procurement, 519-741-2200 ext. 7214
PREPARED BY:Steve Rudak, Procurement Specialist,519-741-2200 ext. 7213
WARD (S) INVOLVED:N/A
DATE OF REPORT:2019-03-20
REPORT NO.:FIN-19-027
SUBJECT:T19-048 Natural Gas and Electric Residential Water Heaters
__________________________________________________________________________________________
RECOMMENDATION:
That Tender T19-048 Natural Gas and Electric Residential Water Heaters,be awarded as
follows:
Tender items 1, 2, 3, 4, 5, 6, 7, 8, 12, 15, 16 and20 to Usines GIANTFactories Inc., Montreal,
Quebec, at their tendered unit prices for $2,501,004.,plus H.S.T. of $325,130.52, for a total
of $2,826,134.52; and,
Tender items 9, 10, 11, 13, 14, 17, 18 and19 to A.O. Smith Enterprises Ltd., Fergus,
Ontario, at their tendered unit prices for $524,149., plus H.S.T. of $68,139.37, for a total of
$592,288.37,for a one (1) year term, with an option to renew for two (2)additional twelve
(12)month terms.
BACKGROUND:
Water h
The rental water heater programwas established in 1989 to ensure affordable hot water service
water needs by delivering a program with economical rental rates and great customer service.
Kitchener Utilities offer a full range of water heaters with the latest technologies including high
efficiency Energy Star compliant water heaters.
The estimated annual spend from May 1, 2018 to April 30, 2019 will be approximately
$3,000,000. The actual spend will depend on the level of activity throughout the term of the
contract.
***This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994for assistance.
1.iv - 1
REPORT:
Tenders were advertised publicly on the City of Kitchener website. Documents were
downloaded by eleven (11)interested parties and by the closing date of WednesdayFebruary
27, 2019,three (3)tenders had been received.
The following tenders were received:
Bid PriceAward Price(incl. HST)
Usines GIANT Factories Inc.Montreal PQ$2,894,702.92$2,826,134.52*
A.O.Smith Enterprises Fergus ON$3,371,038.60$592,288.37*
Rheem Canada Ltd.Brampton ON $3,790,651.67
Award has been split between two (2) companies, to the lowest price per water heatercomplete
to specificationas follows:
Usines GIANTFactories Inc.,providing the following water heaters with an eight (8) year
warranty: Conventional Vented 40, 50, 60 and 75 gallon, Power Vented 40, 50, 60 and 75 gallon
with standard vent discharge, Direct Vent Power Vent 50 gallon, Hi Input Direct Vent Power Vent
50 gallon, Hi Input Power Vent 50 gallon and Electric 60 gallon.
A.O. Smith Enterprises Ltd.,providing the following water heaters with a six(6) year warranty:
Conventional: Power Vented 40 and 50 gallon with a multi-position vent discharge, Hi Input /
Output Power Vented 34 gallon, Direct Vented 50 gallon, Hi Input Direct Vent 50 gallon, High
Efficiency Condensing Power Vent 50 gallon and Electric 40 gallon.
The price for natural gas and electric residential water heaters has increased 11%from 2018
pricing.
The tender was reviewed by P. Pavlinich, Manager Customer Relations and D. Oswald,
Supervisor Customer Service, who concur with the above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of
the delivery of core service.
FINANCIAL IMPLICATIONS:
Water heaters are a capital asset and their installation/replacement is funded through rental
rates.
1.iv - 2
COMMUNITY ENGAGEMENT:
INFORM This report has been posted
council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
FIN-18-033Natural Gas and Electric Residential Water Heaters -Extension
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department
1.iv - 3