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REPORT
Report To: Mayor Carl Zehr & Members of Council
Date of Meeting: 2009-02-23
Submitted By: Dan Chapman, General Manager of Financial Services
Prepared By: Larry Gordon, Chief Purchasing Officer (2214)
Date of Report: 2009-02-17
Report No: FIN 09-023
Subject: T08-102 -Residential Water Heaters
RECOMMENDATION
That tender T08-102, Residential Water Heaters, be awarded as follows:
The conventional vented ACV), power vented (PV), direct vented ~DV}, and tankless water
heaters, to Rheem Canada Ltd., Hamilton, Ontario, complete to specification at their tendered
prices of $2,062,620., plus P.S.T. & G.S.T., for one (1) year, with an option to renew for a
further four ~4}one-year terms.
The Hi-input power vented (HiPV) and direct vent-power vented (DVPV) water heaters to GSW
Water Heating, a Division of A.O. Smith Enterprises Ltd., Fergus, Ontario, at their tendered
prices of $11,627., plus P.S.T. & G.S.T., for one (1) year, with an option to renew for a further
four (4) one-year terms.
BACKGROUND
Water Heaters are annual requirements in support of the City's rental water heater program.
REPORT
Tenders were requested from three (3) potential bidders, advertised publicly in The Record, on
the City of Kitchener website and the Internet through the Ontario Public Buyers Electronic
Tendering Information System. By the closing date of Thursday, January 15, 2009, two (2}
tenders had been received.
The following tenders were received:
GSW Water Heating, a Division of
A.O. Smith Enterprises Ltd
Fergus, ON
$1,935,073.00
Rheem Canada Ltd.
Hamilton, ON
$2, 062, 620.00
Corrected Price
$1, 935, 072.40
The low bidder, GSW Water Heating, a Division of A.O. Smith Enterprises Ltd, Fergus, ON, did
not meet the requirement for a six (6)-year warranty, and their tender was rejected except for
the following: hi-input power vented (HiPV) and direct vent-power vented (DVPV) water heaters.
These two (2) model types are not available from Rheem Canada Ltd.
The tenders were reviewed by S. Dent, Manager, Utilities Programs, B. Nash, Manager of
Customer Relations, and S. Rudak, Buyer, who concur with the above recommendation.
FINANCIAL IMPLICATIONS
Funding will be provided from Internal Order 56000210 -Hot Water Heater Rental Program.
Funding is derived from the depreciation of the existing rented water heaters.
The average price per unit has dropped by approximately 4% from the previous contracts.
Dan Chapman, CA, MPA
General Manager of Financial
Services & City Treasurer
Larry Gordon, CPPO
Chief Purchasing Officer