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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 MM\JDB\BH\km 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