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HomeMy WebLinkAboutFIN-2025-298 - NSP25-120 Multiyear Non-Standard Procurement SuppliersStaff Report Financial Services Department www.kitchener.ca REPORT TO: Council Meeting DATE OF MEETING: June 23, 2025 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: June 17, 2025 REPORT NO.: FIN -2025-298 SUBJECT: NSP25-120 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, as outlined in Financial Services Department report FIN -2025-298. 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. :T-,Tld:(r]:Tell] Ll 113 The City has standardized a range of products and services over time to enhance internal operations and public service delivery. To continue leveraging these efficiencies, staff recommend longer-term agreements with select suppliers under non-standard procurement provisions. These suppliers have been identified based on the following criteria: • Sole distribution rights in Canada; • Exclusive availability of specialized equipment or parts; • Standardization requirements based on previous procurements; • Proven service compatibility and long-standing partnerships. These arrangements provide multiple operational benefits, including improved pricing, reduced procurement lead times, streamlined administration, and enhanced cost control. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 35 of 64 While actual expenditures will vary based on operational activity, the non-standard approach is consistent with the City's procurement framework. The actual spend will depend on the level of activity throughout the term of the contracts. REPORT: In accordance with the Procurement By-law 2022-109, Section 15 — Non -Standard Procurement, Council's approval is required 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 Value Excluding Taxes Procurement Process Approval Authority Goods, Services or $40,001 - Non -Competitive or Chief Procurement Construction under the $250,000 Limited Competition Officer circumstances included in Schedule "C". Goods, Services or $250,001 or more Non -Competitive or Council Construction under the Limited Competition circumstances included in Schedule "C". In accordance with the Procurement By-law 2022-109, Schedule "C", The City may acquire goods, services and construction through a non-standard procurement process within specific circumstances listed. Below are the applicable clauses within Schedule "C" and 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. Page 36 of 64 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. 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 $1,040,000. COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter. APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department ATTACHMENTS: Attachment 1 — Listing of Non -Standard Procurement Suppliers Page 37 of 64 � § a .CL � U) � 0 E 0 � U 2 a. � % � � ■ U) 1� 0 2 0 � � � -j It CD 0 m co ¢ D n � U) t e £ U) 0 k -0 ) -5 -0 -0 / ) _ ) ) 0 o 7' o>,S�>,m� 0-E 0- >,m�z-o -Em� 0- �c� E� E E o a E o CL E_ 0 _� E_ o CL E E o CL § E E E M 0 Q 0 E 0) 0 0 o o o o E®§ n�U) U) E®/ E®/ n�U) E®$ E>1) m m o -o= o -a 3 0-0 3° m 0 70 3 0-0 3 F2/2m25m*� ° ° -a� -a. m*=E2 -0 -a.2 ® m7= -o m: _ -0 -a.2 : _ 2 � = a 2 § ) E : \ E : \ E : \ ) ? � \ E � k ± 4± 4 3 e� 3 m a C m ± 4 O in a O in � � C « ■ ) ) { ) ) 2 2 > ± y ± E RRRR CD CDR R _ 2 6 C C 0 C C C � q ? ? ? ? 2 LU 69- 6c� 69- � 69- ta 69, 2 m k v / § -0 _0 _0 I tf . 2 n06 ƒ m § / /co § § 2 ® 2 $ 7 \ 0 Cl) 7 U) = . CL . 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