The URL can be used to link to this page

Home My WebLink AboutFND-022-20Staff 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 22, 2020 Report Number: FND-022-20 Submitted By: Trevor Pinn, Director of Finance/Treasurer Reviewed By: Andrew C. Allison, CAO File Number: T-280-20 Resolution#: By-law Number: Report Subject: Supply of Sodium Chloride Recommendations: 1.That Report FND-022-20 be received; 2.That K&S Windsor Salt Ltd. with a total bid amount of $2,395,091 (Net HST Rebate) for the initial three-year term being the lowest compliant bidder meeting all terms, conditions and specifications of tender T-280-20 be awarded the contract for the supply of sodium chloride, 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 three- year contract for this service for up to two additional one-year terms; 4.That the funds required for the first-year term in the amount of $767,781 (Net HST Rebate) be funded by the Municipality as provided. The funds required for the second-year term in the amount of $797,699 (Net HST Rebate) and the third-year term in the amount of $829,611 (Net HST Rebate) will be included in future budget accounts. The funding required for the initial one-year term will be funded from the following account: Description Account Number Amount 2020 Winter Control / Winter Mtnce- Plow/Sand/Salt / Misc Oper Supply 100-36-383-10300- 7112 $767,781 5.That all interested parties listed in Report FND-022-20 and any delegations be advised of Council’s decision. Municipality of Clarington Page 2 Report FND-022-20 1. Background 1.1 A tender for the supply of sodium chloride was issued on a Co-operative basis with the Municipality of Clarington, Regional Municipality of Durham (“the Region”), Town of Ajax, City of Oshawa, City of Pickering, Township of Scugog, Township of Uxbridge and the Town of Whitby participating. The host agency for the tender call was the Region. 1.2 The tender was publicly advertised on the Region’s website. 1.3 The contract resulting from this tender included the supply of sodium chloride to the Bowmanville Dock located at 800 Waverly Road South, Bowmanville with participating agencies picking up their own requirements. The sodium chloride is used for salting roads in the winter to remove ice. The contract is for a three-year term, with the option to extend for two additional one-year terms, pending satisfactory pricing, vendor performance and budget approval. 1.4 Five plan takers downloaded the tender document. 2. Analysis 2.1 The Request for Tender closed on March 10, 2020. 2.2 Three submissions were received in response to the tender call and were deemed compliant. 2.3 Of the two companies who downloaded the tender document but chose not to submit pricing: One company, after review of the tender document, felt the job was too large to undertake; 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 K&S Windsor Salt Ltd. be awarded the contract for the supply of sodium chloride. Report Overview To request authorization from Council to award T-280-20 for the Supply of Sodium Chloride. Municipality of Clarington Page 3 Report FND-022-20 2.5 K&S Windsor Salt Ltd. was the incumbent vendor for the previous tender contract and the level of service has been satisfactory. 3. Financial 3.1 The estimated funding required for the initial three-year terms is $2,395,091 (Net HST Rebate). The funding required for the first-year term is $767,781 (Net HST Rebate) and is in the 2020 approved budget allocation as provided. The funding required for the second-year term is $797,699 (Net HST Rebate) and the third-year term is $829,611 and will be included in the future budget accounts. The funding required for the initial one-year term will be funded from the following account: Description Account Number Amount 2020Winter Control / Winter Mtnce- Plow/Sand/Salt / Misc Oper Supply 100-36-383-10300- 7112 $767,781 3.2 In keeping with the terms and conditions of the tender document, pricing submitted for the supply of sodium chloride is provided for the first three years 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 the three years plus two optional additional years is approximately $4,054,312.00 (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-022-20 5. Conclusion It is respectfully recommended that K&S Windsor Salt Ltd. being the lowest compliant bidder be awarded the contract for the supply of sodium chloride per the terms and conditions of Co-op Tender T-280-20. 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-022-20 Attachment 1 to Report FND-022-20 Municipality of Clarington Summary of Bid Results Co-op Tender T-280-20 Supply of Sodium Chloride Bidder Three-Year Total Bid (Net HST Rebate) Potential Five-Year* Total Bid (Net HST Rebate) K+S Windsor Salt Ltd. $2,395,090.52 $4,054,311.74 Compass Minerals Canada Corp. 3,025,550.71 5,449,860.60 Canada Salt Group Ltd 3,150,605.61 5,659,681.57 *Pricing was submitted for year one, two and three with year 4 and 5 pricing estimated using year 3 pricing.