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HomeMy WebLinkAboutCOD-016-11aaan~~on . ~ . _-: __ CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: May 9, 2011 Resolution#: ~pR'366-1 ! By-lavv#: N/A Reporl#: COD-016-11 File: Subject: PURCHASE OF A PRE-BUILT PUMPER RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: THAT Report COD-016-11 be received; THAT the requirements of Section 2, Bid Policies of By-law 2010-112 be waived for this transaction; 3. THAT the Purchasing Manager be authorized to solicit Expressions of Interest from known fire truck manufacturers to determine the availability of a new 1250 GPM Pumper suitable for Clarington requirements; 4. THAT the Purchasing Manager be authorized to negotiate a purchase price for a selected unit; and 5. THAT a report to Council be provided summarizing the results of the Request for the Expressio f Interest and providing a recommendation for the purchase of the selecte nit. /'~t - Submitted by: -' Reviewed by: L/r~--- `'`~K- arie Marano, H.B.Sc., C.M.O., Franklin Wu, Director of Corporate Services Chief Administrative Officer /~QLL ~~, Nancy aylor, B.B.A., C.A., ~1 Director of FinancelTreasurer MMWDB\BH1km CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T(905)623-3379 F (905)623-4169 REPORT NO.: COD-016-11 PAGE 2 1.0 BACKGROUND AND COMMENT 1.1 Fire and Emergency Services has provided funding in their 2011 Capital Budget for a new pumper truck. 1.2 In the past, the methods used to acquire new fire trucks have included Public Tender, Request for Proposal, negotiation with a selected manufacturer and an Expression of Interest. The formal public process (RFT & RFP) for the acquisition of a new unit from date of bid solicitation to delivery of the completed unit can take upwards of twelve to eighteen months depending on the type of equipment required. This is primarily because the unit is custom built and must be manufactured to meet the specifications set out in the tender. 1.3 In 2008, the Municipality of Clarington set aside the normal competitive process and purchased a pre-built pumper using an Expression of Interest (EOI) with satisfactory results. As the EOI process was effective and provided the Fire Department with a pumper which met their requirements and expectations in a much shorter time period and within budget, it is recommended that the Purchasing By-law be waived and the use of an EOI process be authorized for acquisition of the new fire pumper. The EOI process allows for the vendors to focus on the availability of the unit as well as present the features offered on their stock or under construction pumper trucks and indicate an approximate cost. The EOI process is far less formal than the tendering and RFP process and avoids complexities and risks associated with the formal bidding process. 1.4 The 2008 acquisition was for the purchase of the pre-built unit. Typically, the prices for pre-built units are better than those offered for the production of a unit to our specifications simply because the pre-built unit is constructed using standard design and components to a standard and marketable specification. As the stock units are readily available and often sought after, they do not usually fit with a public Tender process REPORT NO.: COD-016-11 PAGE 3 where the evaluation of bids and the award process are lengthy. Dealers are reluctant to commit themselves on the availability of a stock unit when other buyers are interested in a quick purchase. The EOI process lends itself to a much faster decision process and a relatively short award period. 1.5 Staff recommend a request for Expressions of Interest from known manufacturers indicating the availability of pre-built units or those in an advanced state of construction conforming to basic criteria for a 1250 GPM Pumper with accessories and the approximate cost and details with respect to the specifications. Purchasing and Fire Staff will review the submissions, select the unit(s) providing the best combination of price and specification and proceed to negotiate a final delivered price for a unit with accessories. 1.6 Upon completion of the negotiations, a report to Council will be provided outlining the results of the process, the negotiations and requesting approval to proceed with an award. 1.7 If a unit acceptable to the Fire and Emergency Services Department cannot be located using the proposed expression of interest process; a formal tender process will be undertaken. 1.8 In 2008 when the EOI process was recommended authorization was also provided to amendment the Purchasing By-law to include the EOI process should the process prove successful. In accordance with the approval through report #COD-018-08 (copy attached as Schedule 'A'), the By-law will now be amended to include the updated provision for use of the EOI process. REPORT NO.: COD-016-11 PAGE 4 2.0 FINANCIAL 2.1 Fire and Emergency Services has made provision in the 2011 Emergency Services Fleet Budget, Account # 110-28-388-82812-7401 for the purchase of a new pumper at the estimated cost of $600,000.00. 3.0 INPUT FROM OTHER SOURCES 3.1 This report has been reviewed by the Purchasing Manager, with the appropriate department and circulated as follows: Concurrence: Director of Emergency & Fire Services Director of Operations SCHEDULE "Au , . . . CWilJgron REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE March 17, 2008 ~-e50lu.+;D(I%P{}-;;;{)7-0<r Date: Report #: COD-D1B-OB File#_ By-law # Subject: PURCHASE OF A PRE-BUILT PUMPER Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-DiB-OB be received; 2. THAT the req uirement for tendering in accordance with By-law 2006-127 be waived for this transaction; 3. THAT the Purchasing Manager be authorized to solicit expressions of interest from known fire truck manufacturers to determine the immediate availability of a new 125D GPM Pumper; 4. THAT the Purchasing Manager be authorized to negotiate a purchase price for a selected unit; 5. THAT a report to Council be provided summarizing the results of the Request for the Expressions of Interest and providing a recommendation for the purchase of the selected unit; and 6. THAT should the expression of interest process prove successful in this instance, the Purchasing Manager amend the Purchasing By~law to include the use of the expression of interest process for the acquisition of fire fighting vehicles as deemed appropriate. SCHEDULE "A" REPORT NO.: COD~018-08 PAGE 2 Submitted by: c:1~ . ne Marano, H.B.Sc., C.M.O., Director of Corporate Services Reviewed by: O~~~ Franklin Wu, Chief Administrative Officer ",--r ordon Weir, A.M.C.T., C.M.M.II Director of Emergency & Fire Services Fred H~rtRRFA' Director of O'perations MM\GW\FH\JDB\km CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-4169 SCHEDULE "A" REPORT NO.: COD-01S.0S PAGE 3 BACKGROUND AND COMMENT Fire and Emergency Services has provided funding in their 2008 Capital Budget for the replacement of a 1990 pumper. In the past the methods used to acquire new Fire trucks has included Public Tender, Request for Proposal and negotiation with selected manufacturers. Traditionally, the public process for the acquisition of a new unit from date of bid solicitation to delivery of the completed unit can take upwards of 12 to 18 months depending on the type of equipment required. In recent years, our bid solicitations have included a request for pricing on units built to our specification as well as an optional price for the supply of a pre-built unit or a unit that is under production with delivery within a couple of months. The preparation time for this type of solicitation is considerable since the specification must be comprehensive yet generic enough to allow competitive bidding. In many cases the alternate prices for pre-built units are better then those offered for the production of a unit to our specifications simply because the pre-built unit is constructed using standard design and components to a standard specification. As was the case in our last acquisition our recommendation was for the purchase of the pre-built unit. In view of the length of time involved in the formal competitive process and the benefits of obtaining an early delivery, staff are recommending an alternate method of acquisition to expedite the purchase and delivery. This process would include a request for expressions of interest from known manufacturers indicating the availability of pre- built units conforming to basic criteria, i.e. 1250 GPM Pumper with accessories, the approximate cost and details with respect to the specifications. Purchasing and Fire Staff would review the submissions, select the unit providing the best combination of price and specification and proceed to negotiate a final delivered price for the unit with accessories. On completion of the negotiations a report to Council will be provided outlining the results of the process, the negotiations and seeking approval to proceed with an award. SCHEDULE "Au REPORT NO.: COD-018-08 PAGE 4 Note, if a unit acceptable to the Fire and Emergency Services Department cannot be located using the proposed expression of interest process, a formal tender process will be undertaken. However, should this process be successful, it is recommended that the Purchasing By-law be amended to provide for the use of an expression of interest process for fire fighting equipment as deemed appropriate by the Purchasing Manager with a report to Council for the final award. In order to proceed on the basis of an expression of interest and negotiation, the requirements of the Purchasing By-law calling for a public tender process must be waived and Council authority to proceed with an expression of interest process provided.