HomeMy WebLinkAboutFIN-2023-420 - NSP23-044 Multiyear Non-Standard Procurement Suppliers
Financial Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: September 25, 2023
SUBMITTED BY: Ryan Scott, Chief Procurement Officer, 519-741-2200 ext. 7214
PREPARED BY: Brad Kowaleski, Procurement Specialist, 519-741-2200 ext. 7063
WARD(S) INVOLVED: N/A
DATE OF REPORT: September 8, 2023
REPORT NO.: FIN-2023-420
SUBJECT: NSP23-044 Multiyear Non-Standard Procurement Suppliers
RECOMMENDATION:
That the City proceed with non-standard procurement and enter into agreements with
the suppliers listed in Attachment 1 for a period of up to five (5) years;
REPORT HIGHLIGHTS:
The purpose of this report is to obtain approval to proceed with non-standard
procurement in accordance with Procurement By-law 2022-109;
The City has arrangements with the suppliers named in Attachment 1 for many years
and continuing these partnerships will allow the City to continue standardization of
products and delivery of services both internally and externally;
This report supports the delivery of core services.
BACKGROUND:
Through a number of longer-term sourcing activities, the City has standardized on products
and services to be able to deliver services both internally and externally to the public through
various business models. We are looking to improve and leverage our relationships through
longer agreements with each supplier that falls under specific requirements for non-standard
procurement, which would provide benefits such as cost control, reduction in sourcing lead
time, administration and control, and better pricing.
Through analysis of these arrangements, there are a handful where there is an absence of
competition due to being the only supplier in Canada, or exclusive rights to distribution in
Canada, or due to standardization of products here at the City, or other, and those are being
brought forward for recommendation to utilize non-standard procurement, which is allowed
under Procurement Bylaw 2022-109.
The actual spend will depend on the level of activity throughout the term of the contracts.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
REPORT:
In accordance with the Procurement By-law 2022-109, Section 15Non-Standard
Procurement, as the total value of the deliverables for this
non-standard procurement exceeds the delegated authority.
A non-standard procurement is the acquisition of goods, services or construction through a
process or method other than the process and method normally required for the type and
value of the required deliverables, as identified below:
Requirement Procurement Procurement Approval
Value Excluding Process Authority
Taxes
Goods, Services or $30,001 - Non-Competitive or Chief Procurement
Construction under the $120,000 Limited Competition Officer
circumstances included in
Goods, Services or $120,001 or more Non-Competitive or Council
Construction under the Limited Competition
circumstances included in
In accordance with the Procurement By-law 2022-109
goods, services and construction through a non-standard procurement process within
additional information providing justification supporting their use:
2. Where only one supplier is able to meet the requirements of a
procurement in order to:
a) ensure compatibility with existing products
The City has partnered with specific suppliers over the past decade and in some instances,
theses partnerships are multiple decades old. To ensure compatibility and standardization
with existing products and services being delivered, only one supplier is able to meet specific
requirements. The City has run open competitive procurement several times, however, only
receive one response from the sole supplier whom can meet the requirements with existing
products and service levels. The costs for these products and services are funded in full by
a third party via the business model that the division is operating at the end user level.
3. Where there is an absence of competition for technical reasons and the
goods or services can only be supplied by one particular supplier and
no alternative or substitute exists.
For Fire and Fleet specialty vehicles, there is often an original equipment manufacturer, and
an authorized distributor of parts and services or repair facility in Ontario only or Canada
wide. For that reason, an absence of competition exists and the product or services can only
be provided by one supplier and the City procures from those suppliers directly.
4. The procurement is for additional deliverables by the original supplier
of the goods or services that were not included in the initial
procurement if a change of supplier for such additional goods or
services:
a) cannot be made for economic or technical reasons such as
requirements of interchangeability or interoperability with
existing equipment, software, services or installations
procured under the initial procurement; and
b) would cause significant inconvenience or substantial duplication
of costs for the City.
Considerations include health and safety approval requirements for equipment and
arrangements that support standardization Region wide.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
Funding for these goods and services are available in the approved annual operating and
capital budgets. It is anticipated that the total estimated annual value through these
agreements represent approximately $1,820,000.
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
ATTACHMENTS:
Attachment 1 Listing of Non-Standard Procurement Suppliers
Attachment 1 Listing of Non-Standard Procurement Suppliers
Item Division Supplier Description of Service Estimated Annual Reason
Value
1 Utilities FORTISBC ENERGY Test and Rebuild Meters $50,000/year Ensure compatibility
INC. with existing products
Repairing and Sealing of Gas Meters
2 Utilities LAKESIDE Gas Meter and Regulator Retrofit $500,000/year Ensure compatibility
PERFORMANCE GAS Service with existing products
SERVICES
3 Utilities NEPTUNE Water Meters, Appointment Setting $200,000/year Ensure compatibility
TECHNOLOGY GROUP Install Services with existing products
(CANADA)
4 Utilities ROMET LIMITED Rotary Meters $135,000/year Ensure compatibility
with existing products
5 Fire CITY VIEW BUS & Rosenbauer Parts & Service $30,000/year Goods can only be
TRUCK REPAIR supplied by one
particular supplier
6 Fire C-MAX FIRE KME Parts & Service $50,000/year Goods can only be
SOLUTIONS supplied by one
particular supplier
7 Fire COMMERCIAL TRUCK Pierce Parts & Service $50,000/year Goods can only be
EQUIPMENT supplied by one
particular supplier
8 Fire CHIEFS HEAVY TRUCK Collision/Paint/Body Work on Fire $50,000/year Authorized Repair
COLLISION Apparatus Facility for Warranty
and other Repair
9 Fire A J STONE COMPANY Misc Fire Supplies - Gas Detection, $95,000/year Health and Safety
LTD Vehicle Parts, Equipment approval requirements
Helmets and Accessories for equipment, regional
Apparatus Firefighting Foam standardization
10 Fire MOTOROLA P25 Radio Hardware Replacement $120,000/year Health and Safety
SOLUTIONS CANADA approval requirements
INC for equipment, regional
standardization
11 Fire/Fleet KW SPRING & Spring & Suspension $50,000/year Authorized Repair
SUSPENSION LTD Facility for Warranty
and other Repair
12 Fleet EPOKE NORTH Epoke Parts and Equipment for $100,000/ year Goods can only be
AMERICA INC. Spreaders (standardized) supplied by one
particular supplier
13 Fleet JOE JOHNSON Vactor and Elgin Parts and Service $100,000/year Goods can only be
EQUIPMENT INC supplied by one
particular supplier
14 Fleet WORK EQUIPMENT Trackless Parts & Service $100,000/year Goods can only be
(standardized) supplied by one
particular supplier