HomeMy WebLinkAboutFIN-2021-65 - P21-085 Two (2) Fire Pumper Trucks and Three (3) Fire Arial Units
REPORT TO: Special Council
DATE OF MEETING: 2021-12-06
SUBMITTED BY: Ryan Scott, Manager, Procurement 519-741-2200 ext. 7214
PREPARED BY: Ryan Scott, Manager, Procurement 519-741-2200 ext. 7214
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2021-11-18
REPORT NO.: FIN-2021-65
SUBJECT: P21-085 Two (2) Fire Pumper Trucks and Three (3) Fire Aerial Units
RECOMMENDATION:
That Council pre-approve funding in budget years, 2022-2024, for five (5) fire
apparatus from the Fire-Major Equipment/Fleet Capital Account; and
That Proposal P21-085 Two (2) Fire Pumper Trucks and Three (3) Fire Aerial Units, be
awarded to Metz Fire & Rescue, Guelph, Ontario, at their proposed price, in US
dollars, of $5,292,695.95, plus H.S.T. of $688,050.47, for a total of $5,980,746.42 USD.
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 four (4) proposals received for this procurement;
This report supports the delivery of core services.
BACKGROUND:
Five (5) apparatus are scheduled for replacement between 2022 and 2024 as per the Fire-
Major Equipment/Fleet 20 year replacement schedule. This comprises of two (2) fire pumper
trucks and three (3) aerial units. The production time from an order being placed is twelve
(12) months for fire pumper trucks, eighteen (18) thirty (30) months for aerials.
The fire service typically has fire apparatus built to defined specifications desired for the
scope of the intended operations for the municipality and its fire department. These units
are custom built to these specifications by the manufacturer and/or the dealer who have
been awarded the contract through a formal procurement process.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Considering the real supply chain issues that are impacting the world currently, the
procurement of five (5) apparatus over a delivery period of three (3) years is seen as a
strategic procurement whichwillprovide the following benefits:
stability to the sourcing exercise,
mitigate supply risks and price escalations,
contribution to standardization of the fleet,
realize significant savings over the apparatus life cycle,
time savings - specification development and reduced engineering costs;
time savings - contract administration through the entire build process,
time savings - training of suppression staff on each apparatus,
time savings - training of mechanical staff on diagnosis and repair,
parts and maintenance reduction in specialty parts being inventoried and increased
operational readiness.
The sourcing of multiple apparatus at one time with staggered deliveries is not new to the
City. We had leveraged this method in 2017, in which we procured three (3) fire apparatus
over a delivery period of two (2) years. This method provided savings in excess of $210,000
due to the benefits outlined above.
As we look ahead to opening a new fire station in 2026; charging infrastructure required to
support an all-electric fire truck will be included in the design. The all-electric fire truck is
currently in its infancy and only one manufacturer has brought a truck to market, with no
deliveries expected until the end of 2022. Over the next two (2) years, Kitchener Fire can
evaluate the effectiveness of such an apparatus in frontline operations before purchasing a
new pumper truck for the new station.
REPORT:
As per clause 170.7.1 of the Purchasing By-law 2017-106, the Director of Supply Services
shall submit a report to Council recommending award of a purchase greater than $750,000.
Proposals were advertised publicly on the City of Kitchener website. Documents were
downloaded by six (6) interested parties and by the closing date of Wednesday November
3, 2021, four (4) proposals had been received.
A listing of the responding parties follows for your reference:
Commercial Emergency Equipment Delta BC
Darch Fire Inc. Ayr ON
Metz Fire & Rescue Guelph ON *
Resqtech Systems Inc. Woodstock ON
Proposed pricing was requested in US dollars in order to obtain competitive bids without
additional margins being added to account for currency fluctuations.
The proposal submissions were reviewed and rated by the selection committee T. Gitzel,
Deputy Fire Chief, G. Barnard, Master Mechanic Firefighter, and R. Mueller, Emergency
Vehicle Technician.
The committee recommends awarding the project to the highest rated proponent, Metz Fire
& Rescue, Guelph, Ontario.
The selection committee rated the proposal submissions on the following criteria:
Company Profile
References
Warranty Base and Extended
Location of Dealer and Warranty Repair Shop/Parts Availability
Proposed Truck Specifications
Price
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
The net cost for this Proposal (A), is fair and reasonable for a project of this scope and the
upset limit is within the funding available (B) for this project. Funding for this project is
included within the approved capital budget (2022-2024). The estimated surplus (D) will
remain in the account to cover off any fluctuation on the exchange rate at time of delivery
and will be used to fund future vehicles and equipment.
P21-085 Two (2) Fire Pumper Trucks and Three (3) Fire
Aerial Units
Estimated Cost for this Proposal
Proposal P21-085 costs, including HST in US Dollars 5,980,746.42
Exchange Rate at November 18th, 2021 1.260
Proposal P21-085 costs, including HST converted to CAD
7,535,740.49
Dollars
less: HST rebate (749,572.44)
Net Cost Being Awarded 6,786,168.05 A
Add: Projected Costs for Equipment to Outfit the Vehicles 681,021.74
Less: Projected disposal value on old vehicles (365,942.00)
Total Estimated Cost 7,101,247.79 C
Budget for this proposal
Existing Capital Balance 1,238,593.94
Fire Fleet Capital Budget 2022 3,574,382.00
Fire Fleet Capital Budget 2023 1,598,048.00
Fire Fleet Capital Budget 2024 1,419,110.00
Total Budget 7,830,133.94 B
Estimated Surplus/(Deficit) (B - C) 728,886.14 D
* The proposed pricing is in US dollars and has been converted to CAD dollars using the
November 18, 2021 exchange rate of $1.26.The actual cost will be based on the exchange
rate at time of delivery in each year.
COMMUNITY ENGAGEMENT:
INFORM This report has
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