HomeMy WebLinkAboutTender - T06-044 - Desktop ComputersDate: June 12"', 2006
To: Mayor Carl Zehr & Members of Council
Subject: T06 -044 — Desktop Computers
RECOMMENDATION
That tender T06 -044, Desktop Computers, be awarded to Amsdell Inc., Richmond Hill, Ontario
at their tendered price of $192,280., plus optional upgrades of $9,177., including P.S.T. &
G.S.T., and further that Council authorize a contingency purchase of up to fifty (50) additional
computers, including options, at current fair market price during the term of the contract.
REPORT
Tenders were requested from twenty -three (23) potential bidders, advertised publicly in The
Record, on the City of Kitchener website and the Ontario Public Buyers Electronic Tendering
Information System. By the closing date of Thursday May 11', 2006, seven (7) tenders had
been received. The tenders were reviewed by D. Murray, Manager of Client Services, and S.
Rudak, Buyer, who concur with the above recommendation.
The following tenders were received.
MDG Computers Canada Inc.
Oakville, ON
$181,470.00
Amsdell Inc.
Richmond Hill, ON
$192,280.00
Elco Systems Inc.
Markham, ON
$195,270.00
Ederick Associates Inc.
Mississauga, ON
$201,250.00
Daiwa Distribution
Markham, ON
$203,320.00
Techno Trade Canada Inc.
Kitchener, ON
$241,918.60
CDW Canada Inc.
Etobicoke, ON
$270,710.00
The low bid from MDG Computers Canada Inc. did not meet specifications in the following
areas and was rejected. MDG Computers reserved the right to substitute required components
with new or like new components, and MDG retained the right to transfer, sell, or reassign the
agreement.
The workstation pricing is 4.5% lower than the 2005 tender.
Desktop Renewal Strate
Desktop computers are upgraded on a five -year renewal cycle. We currently have approximately
700 units operating as "standard desktop" computers running the standard suite of software
products and used as a business tool for City employees. We generally aim to renew
approximately one -fifth of this fleet on a yearly basis. However, due to a much higher than
expected failure rate of the computers purchased in 2002, a greater number of computers will be
replaced in 2006. This will ensure that service delivery is not negatively impacted by computer
failures. This year we will renew 200 computers as the 2006 PC Rollout.
Desktop Contingency Plan
The purpose of the contingency amount is to ensure that we have a standard platform of PCs for
a period of time. This helps to drastically reduce support costs (staff familiarity with hardware,
dealing with one vendor for repairs, etc). The contingency PCs will be used to provide upgraded
PCs for unanticipated reasons such as new staff hires, hardware failures, and increased system
requirements of new systems (IIMS replacement, CIS, etc). The contingency PCs are most often
funded from various departmental or project budgets but some may be funded from the
Computer Reserve Fund as well.
Optional Hardware Upgrades
We have included the purchase of 200 Microsoft Optical Mice at a cost of $14. each. We have
also included the purchase of 180 Microsoft Ergonomic Keyboards at $27. each and 20
Microsoft Flat Keyboards at a price of $16. each. More people prefer the ergonomic keyboards
but this split allows those who prefer the flat style keyboard to request it. Optional hardware
upgrades amount to $7,980., plus P.S.T. & G.S.T., and has been incorporated into the financial
information.
FINANCIAL IMPLICATIONS
Funding will be provided from index 338095 - Computer Reserve Fund
Index 338095 $1,380,391.
Expenditures to date
$ 242,317.
Encumbrances
$
22,391.
Tender T06 -044 $201,457.
Less G.S.T. Rebate 13,179.
$188,278.
$
188,278.
Total
$
452,986.
Balance
$
927,405.
The Computer Reserve Fund balance will be used to fund the ongoing
renewal of the network
infrastructure, desktop computers and database servers as required.
Larry Gordon
Director of Purchasing