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HomeMy WebLinkAboutFND-014-20Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: June 1, 2020 Report Number: FND-014-20 Submitted By: Reviewed By: File Number: Trevor Pinn, Director of Finance/Treasurer Andrew C. Allison, CAO Co-op C2020-019 Resolution#: GG-165-20 By-law Number: Report Subject: Durham Purchasing Co-operative Asphalt Registry Recommendations: 1. That Report FND-014-20 be received; 2. That Innovative Surface Solutions, with a total bid amount for the initial one year term of $128,107.85 (Net HST Rebate), and a potential contract value of $463,879.11 (Net HST Rebate) for three years, being the lowest responsible bidder for delivery of High Performance Cold Mix Asphalt, meeting all terms, conditions and specifications of Tender C2020-019, be awarded the Asphalt Registry for the Municipality of Clarington's requirements of High Performance Cold Mix Asphalt; 3. That subject to Council approving recommendation 2, the Purchasing Manager in consultation with the Acting Director of Operations be given the authority to extend the contract with Innovative Surface Solutions for up to two additional one year terms; 4. That Coco Paving Inc., with a total bid amount for the initial one year term of $28,309.63 (Net HST Rebate), and a potential contract value of $84,928.89 (Net HST Rebate) for three years, being the lowest responsible bidder for the supply of HL3 Hot Mix and Driveway Mix Asphalt within a reasonable distance to allow for pickup and application, meeting all terms, conditions and specifications of Tender C2020-019, be awarded the Asphalt Registry for the Municipality of Clarington's requirements of HL3 Hot Mix and Driveway Mix Asphalt; 5. That subject to Council approving recommendation 4, the Purchasing Manager in consultation with the Acting Director of Operations be given the authority to extend the contract with Coco Paving for up to two additional one year terms; and Municipality of Clarington Page 2 Report FND-014-20 6. That the funds expended for high performance cold mix asphalt in the amount of $128,107.85 and HL3 hot mix and driveway mix asphalt in the amount of $28,309.63 be funded by the Municipality from the approved budget allocation as follows: Description Account Number Amount Pavement Patch 100-36-381-10255-7112 $156,417.48 7. That all interested parties listed in Report FND-014-20 and any delegations be advised of Council's decision. Municipality of Clarington Page 3 Report FND-014-20 Report Overview To request authorization from Council to award the contract for the supply and delivery of high performance cold mix asphalt and the supply of HL3 hot mix and driveway mix asphalt. 1.1 A Request for Tender (RFT) for the supply and delivery of High Performance Cold Mix Asphalt and the supply of HL3 Hot Mix and Driveway Mix Asphalt was issued on a co- operative basis for a term up to three years and to be renewed annually, with the Municipality of Clarington, City of Oshawa, City of Pickering, Town of Whitby, Township of Scugog and the Region of Durham participating. The host agency for the tender call was the City of Oshawa. 1.2 The RFT was publicly advertised by the City of Oshawa and called for bids on the basis of an Asphalt Registry — High Performance Cold Mix, HL3 Hot Mix and Driveway Mix Asphalt as required by the participating agencies. The Municipality of Clarington has requirements for high performance cold mix asphalt, HL3 hot mix and driveway mix asphalt. 1.3 The RFT closed March 20, 2020. Four companies registered for this bid opportunity. Four submissions were received by Oshawa, summarized and sent to the participating agencies for review and acceptance. 1.4 The intent of the RFT was to set-up a registry of vendors to allow the participating agencies to obtain asphalt products on an as required basis from vendors providing best price, product and services that best suit the agencies requirements based on the terms and conditions of the tender call. 1.5 The terms of the contract include a non-exclusive clause stating "Bidders should note that any Contract(s) awarded as a result of this R.F.T. will be non-exclusive. The City may, at its sole and unfettered discretion, purchase the same or similar Equipment or Services from other sources, including but not limited to other Bidders, during the term of the Contract(s)." The intent of this clause is to allow each of the participating agencies the option to purchase various asphalt products from additional sources if it is deemed by the agency to be in their best interest. 1.6 The contract resulting from this RFT will cover the supply, delivery and pickup of various asphalt products on an as required basis. The term of the contract is for one year with two additional one year terms. The contract renewal is subject to satisfactory service, with price increases not to exceed the consumer price index (CPI) set 60 day prior to renewal. Municipality of Clarington Page 4 Report FND-014-20 2. Analysis 2.1 A summary of bids received for the Municipality of Clarington's requirements is attached and marked as Attachment 1. The tabulation lists the estimated bid amount for the first year and the potential three year contract this provides an estimated total value of the contract based on historical product consumption. 2.2 The recommendation is to award the contract to Innovative Surface Solutions for the supply and delivery of high performance cold mix asphalt and Coco Paving Inc. for the supply and pickup of HL3 hot mix and driveway mix asphalt. 2.3 Innovative Surface Solutions, with a total bid price of $128,107.85 (Net HST Rebate), being the lowest responsible bidder for supply and delivery of high performance cold mix, for a one year term, with the potential of two additional one year terms, to be renewed annually per the terms set out by the host agency. 2.4 D. Crupi & Sons Limited, submitting the lowest bid for the supply and pickup of hot mix is located in Scarborough Ontario, this is a 45 minute drive (65 km) one way on the 401. This distance is outside of what the Municipality would consider reasonable to allow for product pickup and application. Therefore, in keeping with the non-exclusive clause included in the terms and conditions of the Tender document, D. Crupi & Sons Limited bid was not considered further. 2.5 Coco Paving Inc, with a total bid price of $28,309.63 (net HST rebate), was the next lowest bidder for the supply and pickup of HL3 hot mix and driveway mix, for a one year term, with the potential of two additional one year terms, to be renewed annually per the terms set out by the host agency. Coco Paving Inc. has a plant located in North Oshawa, an 11 minute drive (10 km) and South Ajax Ontario, a 30 minute drive (42 km) on the 401. This distance is considered by the Municipality to be reasonable to allow for product pickup and application. 2.6 Innovative Surface Solutions and Coco Paving Inc. have successfully completed work for the Municipality in the past. 3. Financial 3.1 The annual budget available for year one is $161,569. Based on the available budget the maximum estimated contract award amount for year one is $156,417.48 (Net HST Rebate). The Municipality is not committed to purchase the estimated quantities. 3.2 As this is a multi -year contract, the Municipality may extend the contract for up to two additional one-year terms pending satisfactory service with an approximate spend of $196,195.26 (Net HST Rebate) annually. Proposed price increases should not exceed Municipality of Clarington Page 5 Report FND-014-20 the annual percentage change in the most recent issuance (60 days prior) of the Consumer Price Index (CPI) All items — Ontario, as issued by Statistics Canada, and remain firm for the rest of that Contract year. It should be noted that as this is a co-op tender it is not possible for 1 agency to extend any additional years independently. Each agency is required to award independently because of their specific by-law requirements but all agencies must agree to either renew or reissue a new contract. A supplier evaluation is completed near the end of each contract year prior to renewal, so that any issues can be addressed. 3.3 The funds expended for high performance cold mix asphalt in the amount of $128,107.85 (Net HST Rebate) and HL3 hot mix and driveway mix asphalt in the amount of $28,309.63 (Net HST Rebate) be funded by the Municipality from the approved budget allocation as follows: Description Account Number Amount Pavement Patch 100-36-381-10255-7112 $156,417.48 3.4 Queries with respect to the department needs should be referred to the Acting Director of Operations. 4. Concurrence This report has been reviewed by the Acting Director of Operations who concurs with the recommendations. 5. Conclusion It is respectfully recommended that that Innovative Surface Solutions, with a total bid price of $128,107.85 (net HST rebate) for the supply and delivery of high performance cold mix asphalt and Coco Paving Inc., with a total bid price of $28,309.63 (net HST rebate) for the supply and pickup of driveway mix and HL3 hot mix be awarded a contact as per the terms, conditions and specifications of C2020-019. Staff Contact: David Ferguson, Purchasing Manager, 905-623-3379 ext. 2209 or dferguson@clarington.net. Attachments: Attachment 1 — Summary of Bids Received Interested Parties: List of Interested Parties available from Department. Municipality of Clarington Page 6 Report FND-014-20 Attachment #1 to Report FND-014-20 Summary of Bids Received C2020-019 Durham Purchasing Co-operative Asphalt Registry Innovative Surface Black Armour Asphalt * D. Crupi & Sons Coco Paving Incorporated, Products Solutions, Ajax ON (net Products, Brechin ON Limited, Scarborough Bowmanville ON (net HST Rebate) (net HST Rebate) ON (net HST Rebate) HST Rebate) First Term Three Year First Term Three Year First Term Three Year First Term Three Year Term Term Term Term Driveway Mix no bid no bid no bid no bid $4,680.96 $14,042.88 $5,138.88 $15,416.64 HL3 Hot Mix no bid no bid No bid no bid $20,830.27 $62,490.82 $23,170.75 $69,512.25 High Performance $128,107.85** $463,879.11 $130,202.68 $471,464.50 $155,998.08 $621,855.36 $153,212.40 $610,750.80 Cold Mix Asphalt * denotes D. Crupi & Sons Limited bid was not considered due to the distance of the plant outside of what is considered reasonable as allowed for within the terms of the contract document. ** denotes available funding for year one Note: Pricing shown is reflective of the full three contract years.