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HomeMy WebLinkAboutCOD-007-11REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: February 7, 2011 Resolution#: ~Pf1'/061/ gy_law#: NIA Report: COD-007-11 File#: Subject: TENDER NO. CL2009-40 SNOW CLEARING & WINTER MAINTENANCE PROPERTIES, SIDEWALKS & PARKING LOTS FOR NEWCASTLE & SURROUNDING AREAS & CL2009-43 SENIORS & PHYSICALLY DISABLED SIDEWALK & WINDROW SNOW CLEARING SERVICES RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-007-11 be received for information purposes only; 2. THAT the actions taken by the Manager of Purchasing with respect to the termination of the contracts CL2009-40 and CL2009-43 with Birds Property Management ~ Grounds Control, Hampton and the award of the contracts as follows, be endorsed: a. Contract CL2009-40 -Snow Clearing and Winter Maintenance of Municipal Properties, Sidewalks & Parking Lots for Newcastle and Surrounding Areas awarded to B. J. Flint & Sons, Bowmanville, effective January 28, 2011; and b. Contract CL2009~3 -Seniors and Physically Disabled Sidewalk & Windrow Snow Clearing Services awarded to B&D Tractor Services Limited, Bowmanville, effective January 28, 2011. 3. The Bird's Property Management be removed from the Municipality's bidder's list and not be considered for future bid opportunities. 4. THAT pending satisfactory pricing and service the contracts be extended for the reminder of the contract term (i.e., third year); and CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T(905)623-3379 F (905)623-4169 REPORT NO.: COD-007-11 PAGE 2 5. THAT the required funds be drawn from the respective year's operating budget for snow clearing and revenue generated from the seniors snow clearing program. Submitted by: G Reviewed by: ~ r-~~~~ arie Marano, H.B.Sc., C.M.O., Franklin Wu, Director of Corporate Services Chief Administrative Officer MMWDBIbh REPORT NO.: COD-007-11 PAGE 3 1.0 BACKGROUND AND COMMENT 1.1 Contract CL2009-40 - Snow Clearing & Winter Maintenance Properties, Sidewalks & Parking Lots for Newcastle & Surrounding Areas and Contract CL2009-43 -Seniors & Physically Disabled Sidewalk & Windrow Snow Clearing Services required by the Operations Department were both originally awarded to Birds Property Management, Hampton in 2009. Vendor performance issues have resulted in termination of the both contracts. 1.2 The Operations Department is dissatisfied with the inconsistent level of service received for Contract CL2009-40 and CL2009-43 and although Birds Property Management, Hampton has been notified and acknowledged our concerns, there has not been a significant improvement. On January 27, 2011, the Municipality was prepared to terminate the agreement if the contractor would not commit to an increased acceptable level of service, however Birds Property Management, pre-empted the Municipality's request and in turn requested to be released from both contracts in a letter submitted via a-mail and fax. In view of the circumstances, the Municipality of Clarington has terminated both contracts with Birds Property Management, Hampton, Ontario. 1.3 Further details with respect to the terrnination of the contracts can be obtained by contacting the Director of Corporate Services or the Purchasing Manager. 2.0 ANALYSIS 2.1 For Contract CL2009-40, there were no other bids received. Therefore, the Municipality contacted the contractor who was awarded the snow removal contract for Courtice and Bowmanville. B.J. Flint & Sons was asked if they would be willing to provide snow removal services for Newcastle and Surrounding Areas. REPORT NO.: COD-007-11 PAGE 4 2.2 B.J. Flint & Sons, Bowmanville, Ontario agreed to provide snow removal services for Newcastle and Surrounding Areas. The cost to remove snow and sand/salt Part A -Sidewalks and Part B Municipal Facilities is $2,205.06. If Part D pricing is applied the total call-out price is $3,001.53. 2.3 After review and analysis of the pricing, it was mutually agreed by the Operations Department and Purchasing Services that B.J. Flint & Sons, Bowmanville, Ontario be awarded the contract for the balance of the term. 2.4 For Contract CL2009-43, there were six other bids received. The Municipality contacted B.J. Flint & Sons the next low bidder and asked if he would be prepared to provide snow removal services for the senior snow removal contract. B.J. Flint & Sons advised that taking on the Newcastle and Surrounding Areas snow removal covered by contract CL2009-40 will utilize their resources to the maximum. The contractor did not want to take on another contract with the risk of not being able to perform well. 2.5 The other bids were deemed not competitive ranging from $2,800.00 to $4,700.00 per call-out depending on the area quoted. Therefore, pricing was solicited from snow removal contractors who have successfully pertormed for the Municipality in the past. B&D Tractor Service Limited provided pricing and conducted a no charge trial demonstrating their ability to supply the work requirements. B&D Tractor Service Limited, Bowmanville, Ontario provided pricing at $2,673.94 per call-out to remove snow and sand/salt from urban areas and $405.85 per call-out for rural areas. For reference the next lowest bid submission from 2009 provided pricing at $4,713.86 per call-out to remove snow and sand/salt from urban areas and $2,232.34 per call-out for rural areas. 2.6 B&D Tractor Service Limited, Bowmanville, Ontario agreed to provide snow removal services for the Seniors & Physically Disabled Sidewalk & Windrow Snow Clearing Services. REPORT NO.: COD-007-11 PAGE 5 2.7 After review and analysis of the pricing, it was mutually agreed by the Operations Department and Purchasing Services that B&D Tractor Service Limited, Bowmanville, Ontario be awarded the contract for the balance of the term. 2.8 Pending satisfactory service and pricing the contracts be extended for a third year. 2.9 In December 2010, the Municipality awarded a contract to Bird's Property Management for Boulevard Grass Cutting for the Region of Durham based on Tender CL2010-28. In view of the foregoing circumstances and the recommendation that the Bird's Property Management be removed from the Bidder's list, it is also recommended that the agreement for grass cutting be terminated. 3.0 FINANCIAL 3.1 For Contract CL2010-40, Birds Property Management & Grounds Control, Hampton, Ontario, with a total estimated bid price of $4,816.44 per call-out (excluding H.S.T.) compared to B.J. Flint & Sons with a total estimated bid price of $3,001.53 per call-out (excluding H.S.T.). The price difference for a complete call out is $1,814.91. 3.2 For Contract CL2010-43, Birds Property Management & Grounds Control, Hampton, Ontario, with a total estimated bid price of $811.58 per call-out (excluding H.S.T.) compared to B&D Tractor Services with a total estimated bid price of $3,079.79 per call-out (excluding H.S.T.). The price difference for a complete call out is $2,268.21. 3.3 The funds required will be drawn from the Operations Department operating budget for snow clearing and revenue received from the senior snow removal program. REPORT NO.: COD-007-11 PAGE 6 3.4 Queries with respect to department needs, specifications, etc., should be referred to the Director of Operations. 4.0 CONCLUSION 4.1 B.J. Flint & Sons, Bowmanville, Ontario, with a total estimated bid price of $3,001.53 per call-out (excluding H.S.T.) for Tender CL2009-40 -Snow Clearing & Winter Maintenance Properties, Sidewalks & Parking Lots for Newcastle & Surrounding Areas was awarded the contract for the reminder of the contract term. 4.2 B&D Tractor Services, Bowmanville, Ontario, with a total estimated bid price of $3,079.79 per call-out (excluding H.S.T.) for Tender CL2009-43 -Seniors & Physically Disabled Sidewalk & Windrow Snow Clearing Services was awarded the contract for the reminder of the contract term. 5.0 INPUT FROM OTHER SOURCES 5.1 This report has been reviewed by the Purchasing Manager, with the appropriate department and circulated as follows: Concurrence: Director of Operations