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HomeMy WebLinkAboutCOD-006-08 CJ~1!iggton Meeting: Date: Report #: Subject: REPORT CORPORATE SERVICES DEPARTMENT GENERAL PURPOSE AND ADMINISTRATION COMMITTEE February 25th, 2008 Ra.s6\~~O(l*~P-A-l<89-c8 COD-006-08 File#_ By-law # Mechanical Equipment Maintenance Agreement Extension Tri-Air Systems, Markham Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council as follows: 1. That report COD-006-08 be received; and 2. That the decision to extend the existing agreement with Tri-Air Systems, Markham for the on-going maintenance and repair of HVAC systems to May 31, 2008 be endorsed. Submitted by: MMIJDBlkm "- Reviewed by: C ~ _'lv'lL Franklin Wu, Chief Administrative Officer p P. Caruana, ctor of Community Services CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-4169 REPORT NO.: COD-006-08 PAGE 2 BACKGROUND AND COMMENT In 2004, tenders for the provision of services required to maintain and repair heating; ventilation and air conditioning (HVAC) equipment at the various municipal facilities were received. The resulting three (3) year contract was awarded to the incumbent contractor, Tri-Air Systems, based on their low bids for scheduled preventative maintenance and emergency repairs. In 2003, the estimated annual value of the agreement was $114,767.82. In 2007, a similar tender was issued with significant interest by a number of contractors. During the bid evaluation process, a number of issues were apparent with respect to the document making the award of the contract impractical. The issues included changes relating to the number of facilities to be covered by the agreement, a clear definition of what was to be included in the rates applicable to the contract, and information with respect to service level expectations. As a result, the bidder's estimates for fees and labour to provide timely service under the contract may have been under-estimated leading to potential problems after award. Because of the difficulties with the tender and the research required, the ninety (90) day period within which the tender was valid expired. In order to provide an uninterrupted service for the preventative maintenance program and emergency repairs; the existing contract was extended to the end of February 2008. The preparation of a new tender document requires significant time to research the files, develop a comprehensive listing of all the mechanical equipment and clearly define the service expectations. In addition, approximately two months will be required to issue the tender call and evaluate the bids. Therefore, a further extension of the agreement with Tri-Air Systems is required. Both the Operations and Community Services Department staff support the requirement for a new tender document. However, for efficiency staff recommend the timing for the new contract to commence at the end of the heating season and in time for the summer air conditioning preventative maintenance program. To accommodate this request, a further extension of the existing contract to May 31, 2008 is required. As the value of the extended contract will exceed the authority provided under the Purchasing By-law, authorization to extend the agreement is required.