HomeMy WebLinkAboutFIN-20-041 - FPO20-084 Agricultural TractorsREPORT TO:Committee of the Whole
DATE OF MEETING:2020-05-11
SUBMITTED BY:Ryan Scott,Manager of Procurement, 519-741-2200 ext. 7214
PREPARED BY:Jenny Ung, Associate ProcurementSpecialist,519-741-2200 ext. 7216
WARD (S) INVOLVED:N/A
DATE OF REPORT:2020-04-08
REPORT NO.:FIN-20-041
SUBJECT:FPO20-084 Agricultural Tractors
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RECOMMENDATION:
That the City of Kitchener piggyback on the Region of Waterloo Tender #T2020-133 for
Agricultural Tractors, awarded to Colvoy Equipment 2012 Ltd., Brantford, Ontario, at the
bid price of $105,950.,including optional xtreme duty rear and right flailsof $77,415.69,
plus HST of $23,837.54,for a total award of $207,203.23.
BACKGROUND:
Why this is critical to proceedahead: Replacement equipment that is critical for service
delivery.
The Region of Waterloo Tender #T2020-133was publicly advertised for the supply and delivery
of three agricultural tractors andnamedColvoy Enterprises theVendor of Record for all
Agricultural Tractors for athree (3) year period ending February 28, 2023 withthe option to
renew for two (2) additional one (1) yearperiods.
The tender sent out by the Region of Waterloo called for the supply of three agricultural tractors
whichthrough economies of scale,provide better pricing than the City of Kitchener could obtain
for one unit. As the tender was publicly advertised before the Canadian dollar dropped, the
pricing is very reasonable. In addition, the agricultural tractor that will be supplied through this
supplier is a replicaof equipmentcurrently in fleet. As such, minimal trainingwould be required
to staffand stockroom has parts in stock.
The budget estimate provided before the 2020 Annual Fleet Equipment Review did not include
the mowers. As this was missed, this replacement appears to be overbudget.
This unit will replace unit 715 in INSParksand Cemeteries, as approved for replacement in
the 2020 Annual Fleet Equipment Review. This unit will be used by INS Parksand Cemeteries,
for large area grass cutting in the spring, summer and fall. The current unit is nine(9)years old
with an eight(8)year lifecycle.
***This information is available in accessible formats upon request. ***
Please call 520-741-2345 or TTY 1-866-969-9994for assistance.
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REPORT:
As per clause 170.7.3 of the Purchasing By-law 2017-
Value, the Director of Supply Services shall submit a report to Council recommending award of
a purchase greater than $100,000 if any one or more of the following conditions apply:
a.the value of the Bid being recommended for award including any contingency allowance
Tenders were advertised publicly on the Region of Waterloowebsite. Documents were
downloaded by nine(9) interested parties and by the closing date of MondayFebruary3,2020,
four(4) tenders had been received.
The following tenders were received:
Colvoy Enterprises 2012 Ltd BrantfordON*
Delta Power EquipmentWarwick TWP ON
ESM Farm Equipment LtdWallenstein ON
Premier EquipmentElmira ON
The tender was reviewed by M. Born, Manager of Fleet, who concurs with the above
recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
the delivery of core service.
FINANCIAL IMPLICATIONS:
The net cost for this tender (A), is fair and reasonable for a purchase of this scope, but the
upset limit is beyond the allowance provided within the budget (B). Funding for this equipment
is included within the approved capital budget. The estimated deficit (D) will be funded from
previous surpluses that have been closed out to the EquipmentReserve Fund.
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FPO20-084
Supply One (1) Agricultural Tractor with Xtreme Duty Rear and Right Flail Mowers
Estimated Cost for this Tender
Region Tender T2020-133 costs including optional equipment and HST207,203.23
less: HST rebate on tender(20,610.30)
Net Cost Being Awarded186,592.93 A
Projected Costs for Additional Outfitting -
Total Estimated Cost for this Tender$ 186,592.93 C
Budget for this Tender
Replacement of unit 715 in INS -Parks and Cemeteries$ 130,000.00 B
Estimated Surplus/(Deficit) for this Tender (B -C)(56,592.93)D
to be funded from Equipment Reserve Fund
COMMUNITY ENGAGEMENT:
INFORM This report has been
council / committee meeting.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department
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