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HomeMy WebLinkAboutCOD-068-04 '- v . . Cl![#Jgton REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: December 6, 2004 ;l.es 116(}/J-S/O-o'-f File #_ By-law # Report #: COD-068-04 Subject: TENDER CL2004-1 CONTRACT MECHANICAL EQUIPMENT MAINTENANCE Recommendations: ... It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-068-04 be received; 2. THAT the contract award to AirCon Systems, Whitby, Ontario for Tender CL2004-1, Mechanical Equipment, Part 8, be cancelled immediately; 3. THAT a purchase order be issued to Tri-Air Systems, Scarborough, Ontario, for emergency repairs on an as required basis, at an hourly rate of $74.50, to be effective immediately; and 4. THAT staff re-tender for the requirements of Part B for the remainder of the three year term to expire May, 2007, FORTHWITH. Submitted by: Reviewed by: . nklin Wu, ~ Chief Administrative Officer MM\LAB\ld li;;JU . -~ BACKGROUND AND COMMENT In May of this year, Council approved the award of Tender CL2004-1, Mechanical Equipment Maintenance Contract as follows: Part A Gas Fired Equipment Part B Oil Fired Equipment Tri-Air Systems AirCon Systems Scarborough, Ontario Whitby, Ontario Subsequent to the award, AirCon Systems have advised that they no longer employ the necessary qualified staff required to fulfill their contract obligations. It is therefore recommended that the award of Part B to the firm be cancelled immediately. At the time of tender, there was only one other firm who bid on Part B. The pricing submitted by the bidder was substantially higher. In addition, the references contacted advised that there were concerns with respect to the service received. As the contract for the maintenance of the mechanical equipment is for a three year term, it is recommended that the tender for Part B be reissued. This will allow for additional competition as there are a couple of firms that have since acquired the required qualifications. In the interim and until such time as the tender is issued and an award made, it is also recommended that a purchase order be issued to Tri-Air Systems to provide emergency service on an as required basis at an hourly rate of $74.50. Since the time of the initial tender, Tri-Air Systems have retained a licensed oil burner mechanic and are able to fulfill our requirements. As it is essential that an agreement be in place for emergency service, a forthwith approval is requested. li:.:Jl