HomeMy WebLinkAboutCOD-022-12 ClafiRgtOff REPORT
CORPORATE SERVICES DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: September 24, 2012 Resolution#: - 416 "/ By-law#: N/A
Report#: COD-022-12 File#:
Subject: PURCHASE OF FOUR WHEEL DRIVE TRACTOR C/W PLOW MOUNT &
CONTROLS, SIDE BOOM & REAR FLAIL MOWER
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report COD-022-12 be received;
2. 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 tractor manufacturers to determine the availability of a Four Wheel
Drive Tractor complete with Plow Mount and Controls, Side Boom and Rear Flail
Mower suitable for Clarington requirements;
4. THAT the Purchasing Manager be authorized to negotiate a purchase price for a
selected unit and issue a purchase order; and
5. THAT an information report to Council be provided summarizing the results of the
Request for the ressions of Interest process.
Submitted by: Reviewed by:
arie Marano, H.B.Sc., C.M.O., Franklin Wu,
Director of Corporate Services Chief Administrative Officer
Nancy T lor, B. .A., C.A.,
Director of Finance/Treasurer
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CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T(905)623-3379
REPORT NO.: COD-022-12 PAGE 2
1.0 BACKGROUND AND COMMENT
1.1 The Operations Department has provided funding in their 2012 Capital Budget
for a four wheel drive tractor complete with plow mount and controls, side boom
and rear flail mower.
1.2 In the past, the methods used to acquire new tractors have included Public
Tender and Quotations. This formal process provides for the submission of firm
prices based on a clearly defined specification and conditions where compliance
to the requirements is crucial to an award. In a tender process there is little
latitude for alternates and asking for same poses concerns about the fairness of
the process particularly when the alternate is significantly different to the
requirements stipulated in the tender.
1.3 The EOI process allows for the vendors to focus on the availability of a unit as
well as present the features offered on their stock or demonstration units that
they feel will meet the general requirements of the Municipality and indicate an
approximate cost. The EOI process is far less formal than the tendering and
RFP process and avoids complexities, risks and contractual issues associated
with the formal bidding process and can result in cost savings to the buyer as
well as improved delivery.
1.4 Typically, the prices for demonstration 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 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.
REPORT NO.: COD-022-12 PAGE 3
1.5 Staff recommend a request for Expressions of Interest from known
manufacturers/dealers indicating the availability of demonstration or stock units
or those in an advanced stage of construction conforming to basic criteria for a
four wheel drive tractor complete with plow mount and controls, side boom and
rear flail mower and the approximate cost and details with respect to the
specifications. Purchasing and Operations 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.
1.6 Upon completion of the negotiations and following an award, a report to Council
will be provided outlining the results of the process.
1.7 If a unit acceptable to the Operations Department cannot be located using the
proposed expression of interest process; a formal tender process will be
undertaken.
2.0 FINANCIAL
2.1 The Operations Department has made provision in the 2012 Operations
Department Budget, Account# 110-36-388-83642-7401 for the purchase of a
replacement tractor at the estimated cost of$200,000.00.
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 Operations
CONFORMITY WITH STRATEGIC PLAN — Not Applicable
REPORT NO.: COD-022-12 PAGE 4
Staff Contact: Not Applicable
Attachments: Not Applicable
List of interested parties to be advised of Council's decision: Not Applicable