HomeMy WebLinkAboutFIN-2021-18 - T21-025 Supply and Delivery of Golf Carts
REPORT TO: Committee of the Whole
DATE OF MEETING: 2021-03-22
SUBMITTED BY: Ryan Scott, Manager of Procurement 519-741-2200 ext. 7214
PREPARED BY: Adam Buchholtz, Associate Procurement Specialist, 519-741-2200
ext. 7217
WARD(S) INVOLVED: Wards 4 and 9
DATE OF REPORT: 2021-03-12
REPORT NO.: FIN-2021-18
SUBJECT: T21-025 Supply and Delivery of Golf Carts
RECOMMENDATION:
That Tender T21-025 Supply and Delivery of Golf Carts, be awarded to Products
Mobilicab, Acton Vale, Quebec, at their tendered price of $351,956.00, less trade in
value of $112,200.00, plus H.S.T. of $31,168.28., for a total of $270,924.28., for a one
(1) year term, with an option to renew for four (4) additional twelve (12) month terms.
REPORT HIGHLIGHTS:
The purpose of this report is to obtain approval to proceed with an award as per
Purchasing By-law 2017-106.
There were three (3) tenders received for this procurement.
This report supports the delivery of core services.
BACKGROUND:
Kitchener Golf currently carries a fleet of 136 motorized golf carts to service golfers at both
Doon Valley and Rockway Golf Courses. The golf cart fleet has a mix of electric and gas
carts. This year 44 carts will be replaced that have reached the end of their lifecycle.
Kitchener Golf has managed to extend the life of the motorized golf carts beyond the five-
year lifespan through battery replacement and regular maintenance. These carts have aged
to a point that the batteries are failing, or the carts are breaking down while on the course.
The carts are no longer reliable for customers to use and maintenance down time and
repairs have increased leading to customer dissatisfaction and higher repair costs.
The existing carts will be replaced with lithium battery golf carts. The lithium battery provides
a greater energy efficient product that holds a charge longer than a lead-acid battery and is
fully charged in half the time. The lithium batteries require no monthly maintenance and
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have a longer life span than lead acid batteries. The lithium battery golf cart also has a
higher trade in-value when it comes to future replacement.
This tender is based on fixed unit prices for lithium battery golf carts.
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. Documents were
downloaded by seven (7) interested parties and by the closing date of Friday March 5, 2021,
three (3) tenders had been received.
The following tenders were received:
Adjusted
Bid Price Bid Price
Products Mobilicab Acton Vale QC $270,924.28 *
G.C. Duke Equipment Ltd. Burlington ON $531,615.28 $303,581.28
Toromont Industries Ltd. Concord ON $807,900.28 $788,012.28
Bid prices were adjusted on two submissions as the trade in values were inputted incorrectly
in the bidding system.
The tender was reviewed by B. Cheyne, Manager Sport Development & Golf, and T.
Margetts, Interim Superintendent Golf Grounds, who concurs with the above
recommendation.
STRATEGIC PLAN ALIGNMENT:
This report supports Environmental Leadership.
FINANCIAL IMPLICATIONS:
The net cost for this tender (A), is fair and reasonable for a project of this scope, although
the upset limit exceeds the budget allowance (B) provided within the budget. Funding
for this project will come from the Golf Capital Reserve Fund and the deficit (D) will be
paid off by the annual contribution to the reserve.
T21-025
Supply and Deliver Golf Carts
Estimated Cost for this Work
Tender T21-025 costs, including HST 397,710.28
less: Cart trade ins, (126,786.00)
Cost Including HST 270,924.28
less: HST rebate (31,168.28)
Net Cost Being Awarded 239,756.00 A
Projected Costs: Staff Time/Permitting -
Total Estimated Cost for this Work 239,756.00 C
Budget for this Work
Golf Capital Reserve - account balance 236,427.00
Total Budget for this Work 236,427.00 B
Total Estimated Surplus/(Deficit) (3,329.00) D
COMMUNITY ENGAGEMENT:
INFORM
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department