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Report To: General Government Committee
Date of Meeting: June 22, 2020 Report Number: FND-021-20
Submitted By: Trevor Pinn, Director of Finance/Treasurer
Reviewed By: Andrew C. Allison, CAO
File Number: CT-539A-20
Resolution#:
By-law Number:
Report Subject: Supply, Delivery and Application of Calcium Chloride, Magnesium
Chloride or Calcium-Magnesium Blend
Recommendations:
1.That Report FND-021-20 be received;
2.That Miller Paving Ltd. with an annual bid amount of $102,004.00 (Net HST Rebate)
being the lowest compliant bidder meeting all terms, conditions and specifications of
tender CT-539A-20 be awarded the contract for an initial one-year term for the
supply, delivery and application of calcium chloride, magnesium chloride or calcium-
magnesium blend, as required by the Operations Department;
3.That pending satisfactory performance, the Purchasing Manager, in consultation
with the Acting Director of Operations, be given the authority to extend the contract
for this service for up to two additional one-year terms;
4.That the funds required for this project in the amount of $102,004.00 (Net HST
Rebate) be funded by the Municipality as follows:
Description Account Number Amount
Winter Control / Winter Mtnce-
Plow/Sand/Salt / Misc Oper Supply
100-36-383-10300-7112 $102,004
5.That all interested parties listed in Report FND-021-20 and any delegations be
advised of Council’s decision.
Municipality of Clarington Page 2
Report FND-021-20
1. Background
1.1 A tender for the supply, delivery and application of calcium chloride, magnesium
chloride or calcium-magnesium blend was issued on a Co-operative basis with the
Municipality of Clarington, Town of Ajax, City of Oshawa, City of Pickering, Township of
Scugog and the Town of Whitby participating. The host agency for the tender call was
the Town of Whitby.
1.2 The tender was divided into the following three options and bidders could provide
quotes for one or more options:
Option #1 is for the supply, delivery and application of 35% Liquid Calcium Chloride;
Option #2 is for the supply, delivery and application of 30% Liquid Magnesium
Chloride; or,
Option #3 is for the supply, delivery and application of 35% Liquid Calcium
Magnesium Blend.
1.3 The contract resulting from this tender included the supply, delivery and application of
the lowest price option as all three options can be effectively used as dust suppressant
on the granular portion of the roadbed. The contract is for a one-year term, with the
option to extend for two additional one-year terms, pending satisfactory pricing, vendor
performance and budget approval.
1.4 The tender was publicly advertised on the Town of Whitby’s website.
1.5 Six plan takers download the tender document.
2. Analysis
2.1 The Request for Tender closed on April 2, 2020.
2.2 Two submissions were received in response to the tender call, both were deemed
compliant.
2.3 Of the four companies who downloaded the tender document but chose not to submit
pricing:
Report Overview
To request authorization from Council to award CT-539A-20 for the Supply, Delivery and
Application of Calcium Chloride, Magnesium Chloride or Calcium-Magnesium Blend.
Municipality of Clarington Page 3
Report FND-021-20
One company decided they were unable to bid due to current workload;
Two companies, after review of the tender document, did not
manufacture/supply this commodity; and
One company did not provide a response.
2.4 After review of the bid by the Municipality of Clarington’s Purchasing Division and the
Operations Department and the Durham Purchasing Co-operative, it was mutually
agreed that the low, compliant bidder Miller Paving Ltd. be awarded the contract for the
supply, delivery and application of calcium-magnesium blend (Option #3).
2.5 Miller Paving Ltd. was the incumbent vendor for the previous tender contract and the
level of service has been satisfactory.
3. Financial
3.1 The annual funding required for this project is $102,004 (Net HST Rebate) and is in the
approved budget allocation as provided and will be funded from the following account:
Description Account Number Amount
Winter Control / Winter Mtnce-
Plow/Sand/Salt / Misc Oper Supply
100-36-383-10300-7112 $102,004
3.2 Pricing submitted for the supply, delivery and application of calcium-magnesium blend is
to remain firm for the first year of the contract. Should the contract be extended for
additional years, the unit prices would be adjusted on the anniversary date of the
contract award by the annual percentage change in the most recent issuance of the
Consumer Price Index (CPI), All Items, Ontario as published by Statistics Canada and
the pricing will remain firm for the contract year.
3.3 The total estimated contract for one year plus two optional additional years is
approximately $306,013 (Net HST Rebate).
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.
Municipality of Clarington Page 4
Report FND-021-20
5. Conclusion
It is respectfully recommended that Miller Paving Ltd. being the lowest compliant bidder
be awarded the contract for the supply, delivery and application of calcium-magnesium
blend per the terms and conditions of Co-op Tender CT-539A-20.
Staff Contact: David Ferguson, Purchasing Manager, 905-623-3379 Ext 2209 or
dferguson@clarington.net.
Attachments:
Attachment 1 – Summary of Bid Results
Interested Parties:
List of Interested Parties available from Department.
Municipality of Clarington Page 5
Report FND-021-20
Attachment 1 to Report FND-021-20
Municipality of Clarington
Summary of Bid Results
Co-op Tender CT-539A-20
Supply, Delivery and Application of Calcium Chloride, Magnesium Chloride
or Calcium-Magnesium Blend
Bidder
One-Year
Total Bid
(Net HST Rebate)
Potential Three-Year
Total Bid
(Net HST Rebate)
Miller Paving Limited
(Option #3: 35% Liquid Calcium
Magnesium Blend)
$102,004.22
$306,012.67
Da-Lee Dust Control Limited
(Option #1: 35% Liquid Calcium
Chloride)
$118,041.60
$354,124.80