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Home My WebLink AboutCOD-028-12 Cladiwn REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: November 26, 2012 Resolution#: d ' -/ By-law#: N/A Report#: COD-028-12 File#: Subject: PURCHASE OF FOUR WHEEL DRIVE TRACTOR CAN 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-028-12 be received for information. Submitted by ` Reviewed by1� � f � Marie Marano, H.B.Sc., C.M.O., Franklin Wu, c Director,of Corporate Services Chief Administrative Officer Nancy Tj�lor, B.,18. '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-028-12 PAGE 2 1. BACKGROUND 1.1 Report COD-022-12 was approved by Council on October 1, 2012 Resolution #GPA-452-12. The report is attached as Attachment 2 for reference. 1.2 The Expression of Interest (EOI) was publicly advertised and requested information and availability of one (1) Four Wheel Drive Tractor CAN Plow Mount & Controls, Side Boom & Rear Flail Mower as required by the Operations Department. Details of the requirement were set out in the information package provided to interested dealers. Subsequently, four (4) firms submitted Expression of Interests covering 5 units for consideration. A tabulation of the bid amounts is attached as Attachment 1. 1.3 The EOI document made provision for bids with an option to trade an existing unit. Attachment 1 provides both an outright purchase price and an after trade price. 2. ANALYSIS 2.1 Of the four submissions offering 5 units for consideration only 2 units met the mechanical and performance requirements established for the tractor and mower combination: Cubex Limited, Brantford (Option 1) and Green Tractors Incorporated, Omemee. The submissions from Evergreen Farm & Garden Limited, Bowmanville, Joe Johnson Equipment, West St. Paul, Manitoba and Cubex Limited, Brantford (Option 2) failed to meet the mechanical or performance requirements for one or more of the following reasons: • rear flail mower is smaller; • boom mowers are unable to cut in front and behind the tractor (i.e., less functionality); • main boom pivot design is not robust; • controls are electric instead of electronic; • no front axle stabilizer; • attachments are not quick attached; • boom rest/rear stow is not available; • cab did not meet specification; • lower than required engine horsepower. 2.2 After review and analysis of the submissions by the Operations Department and Purchasing, it was mutually agreed that Cubex Limited, Brantford, Ontario, be awarded the contract for Option 1; the Supply & Delivery One (1) Four Wheel Drive Tractor CAN Plow Mount & Controls, Side Boom & Rear Flail Mower. 2.3 The order has been placed and delivery of the new unit is expected early in the New Year. REPORT NO.: COD-028-12 PAGE 3 2.4 Cubex Limited, Brantford, Ontario, did not provide an option for the trade unit a 2000 John Deere 6310 c/w side boom and rear rotary mower (Unit 00533). 2.5 The references for Cubex Limited, Brantford, Ontario have been checked and are satisfactory. 3. COMMENT 3.1 The purchase of one (1) Four Wheel Drive Tractor C/W Plow Mount & Controls, Side Boom & Rear Flail Mower is a replacement unit for the Operations Department. 3.2 The Operations Department working with the Purchasing Division will consider their options with respect to the disposal of the surplus unit. Options in this regard include sending the unit, a 2000 John Deere 6310 c/w side boom and rear rotary mower (Unit 00533), to the Durham Regional Auction in 2013 or offering the unit for sale by sealed bid. 4. FINANCIAL 4.1 The budget for the Four Wheel Drive Tractor C/W Plow Mount & Controls, Side Boom & Rear Flail Mower is $200,000.00. The funds required in the amount of $197,936.93 for the supply & delivery one (1) four wheel drive tractor with plow mount & controls, side boom & rear flail mower are provided in the Operations Department 2012 Replacement of Fleet-Roads Account 110-36-388-83642-7401. 4.2 The proceeds from the sale of the used tractor will be credited to the Operations Department Fleet account to reduce the cost to well within the budget limit. 5. CONCURRENCE 5.1 This report has been reviewed by the Purchasing Manager, with the appropriate department and circulated as follows: Concurrence: Director of Operations 6. CONCLUSION 6.1 The use of the Expression of Interest process for this acquisition did not meet all the objectives set out in report COD-022-12. As it turned out used or demo units meeting our requirements were not available as expected. However, the process did identify the availability of units that met our requirements, confirmed that the price for the unit selected was competitive and this was achieved in a timely manner. REPORT NO.: COD-028-12 PAGE 4 CONFORMITY WITH STRATEGIC PLAN — Not Applicable Staff Contact: Jerry Barber, Purchasing Manager Attachments: Attachment 1: Bid Tabulation Attachment 2: GP&A Report COD-022-12 List of interested parties to be advised of Council's decision: Not Applicable i Attachment 1 THE MUNICIPALITY OF CLARINGTON TENDER EOI-2012-1 BID TABULATION BIDDER TOTAL BID TOTAL BID (without trade-in & net (with trade-in & net of of HST Rebate) HST Rebate Cubex Limited Brantford, ON Option 1 $197,936.93 no bid Green Tractors Incorporated Omemee, ON $223,907.62 $217,163.80 Evergreen Farm & Garden Limited $132,350.24 $111,998.24 Bowmanville, ON Non-compliant Joe Johnson Equipment $156,287.08 $137,970.28 West St. Paul, MB Non-compliant Cubex Limited $173,740.13 no bid Brantford, ON Option 2 Non-compliant CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T(905)623-3379 Attachment 2 ciffingon REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: September 24, 2012 Resolution#: By-lave#: N/A Report#: COD-022-12 File#: Subject: PURCHASE OF FOUR WHEEL DRIVE TRACTOR CM/ PLOWWOUNT & 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; f t 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: -/Marie Marano, H.B.Sc., C.M.O., Franklin Wu, Director of Corporate Services Chief Administrative Officer /zor Nancy Taylor, B!�.A., C.A., Director of Finance/Treasurer MM\JDB\BH\km j i CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO LIC 3A6 T(905)623-3379 REPORT NO.: COD-022-12 PAGE 2 I 1.0 BACKGROUND AND COMMENT 11 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 j 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. I 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. i REPORT NO.: COD-022-12 ' PAGE 3 i 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. i 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 i I REPORT NO.: COD-022-12 PAGE 4 I 4 Staff Contact: Not Applicable Attachments: Not Applicable i List of interested parties to be advised of Council's decision: Not Applicable i i I r i i i I i i i