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HomeMy WebLinkAboutCOD-008-18Clarftwn Corporate Services 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: March 26, 2018 Report Number: COD -008-18 Resolution: GG -182-18 File Number: T-257-17 By-law Number: Report Subject: Supply and Delivery of Bulk Gas and Diesel Fuels (Co-operative Tender) Recommendations: That Report COD -008-18 be received; 2. That Canada Clean Fuels be awarded a contract with the estimated annual amount of $135,098.61 (net HST rebate) for each of the second and third year of an initial 3 year contract for the supply and delivery of bulk gas and diesel fuels as per terms, conditions and specifications of Tender T-257-17; 3. That the funding required annually in the amount be drawn from the respective operating account; 4. That pending satisfactory performance the Purchasing Manager be given the authority to extend the contract for this service for up to two additional one year terms; 5. That all interested parties listed in Report COD -008-18 and any delegations be advised of Council's decision regarding the award by the Corporate Services Department. Municipality of Clarington Report COD -008-18 Report Overview Page 2 To request authorization from Council to award Co-operative Tender T-257-17 for the supply and delivery of Bulk Gas and Diesel Fuels 1. Background 1.1 A tender for the Supply and Delivery of Bulk Gas and Diesel Fuels, for an initial three (3) year contract term, with the option to extend for up to two additional one (1) year periods, was issued on a Co-operative basis by the host agency, The Region of Durham. 1.2 The Municipality of Clarington's requirements were prepared in consultation with the Operations Services Department. 1.3 The Region of Durham issued Tender T-257-2017 on behalf of the Municipality of Clarington and other participating Agencies. 1.4 The Tender was advertised electronically on the Region's website on July 18, 2017 and was downloaded by eleven (11) companies. 1.5 The tender closed on August 10, 2017 2. Proposal 2.1 Six (6) bids were received in response to the tender call. Bids were reviewed and tabulated by the Region of Durham's Purchasing Division (see Attachment 1). 2.2 The results were provided to the participating Agencies and the results were forwarded to the Operations Services Department, for their review and consideration. 2.3 After a further review and analysis of the submissions by the Municipality's Operations Services Department and the Purchasing Services Division, it was mutually agreed that the low bidder, Canada Clean Fuel, be recommended for the award of contract T-257- 2017 for the Supply and Delivery of Bulk Gas and Diesel Fuels. 2.4 Reference checks for Canada Clean Fuel were completed by the Region of Durham and were satisfactory. 2.5 Due to the existing contract expiring and the time required to award the contract, approval was sought from the CAO, as allowed for in the Purchasing by-law, to award the first year of the initial three year contract term report PS -015-17 (refer to Attachment 2). Approval is now being sought to award the second and third year of the initial three year contract as well as authorization to renew the contract for the two possible one year extension pending satisfactory service. 3. Financial 3.1 The funding required in the annual spend be drawn for the respective operating account. Municipality of Clarington Page 3 Report COD -008-18 3.2 Queries with respect to the requirements, specifications, etc. should be referred to the Director of Operations. 4. Concurrence 4.1 This report has been reviewed by the Director of Operations who concurs with the recommendation. 5. Conclusion 5.1 It is respectfully recommended that Canada Clean Fuel being the lowest compliant bidder be awarded a contract in the annual amount of $135,098.61 (net HST rebate) for each of the second and third year of an initial three (3) year contract for tender T-257-2017 for the Supply and Delivery of Bulk Gas and Diesel Fuels as per the terms, conditions and specifications contained within the tender document. 6. Strategic Plan Application This conforms to the Strategic Plan. Submitted by: Reviewed by: ie �arano,Sc., C.M.O. Andrew C. Allison, B. Comm, LL.B Director of Corporate Services Chief Administrative Officer Staff Contact: David Ferguson, Purchasing Manager, 905-623-3379 x2209 or dferguson@clarington.net Attachments: Attachment 1 — Summary of Bid Results for Tender T-257-17 Attachment 2 - PS -015-17 Report List of interested parties to be notified of Council's decision is on file in the Corporate Services Department. Municipality of Clarington Summary of Annual Bid Results Attachment 1 to Resort COD -008-18 T-257-2017 Supply and Delivery of Bulk Gas and Diesel Fuel Pricing shown in the table below is estimated annual spend for the Municipality of Clarington. Company Total Cost (Including Total Cost (net HST HST) Rebate) Canada Clean Fuels Inc. $150,021.06 $135,098.61 Suncor Energy Products $150,835.79 $135,832.30 Partnership Parkland Fuel Corporation $153,615.82 $138,335.80 Refuel Canada LP $153,988.49 $138,671.41 zPail-Aull"I Date: December 4, 2017 Attachment 2 to Report COD -008-18 Report Purchasing Services To: Andrew Allison, CAO From: David Ferguson, Manager, Purchasing Services Report #: PS -015-17 File Number: CL2017-34 Subject: Supply & Delivery of Bulk Gas and Diesel Fuels Recommendations It is respectfully recommended to the Chief Administrative Officer the following.. 1. That Canada Clean Fuels be awarded the contract for the first year of an initial 3 year contract for the supply and delivery of bulk gas and diesel fuels as per terms, conditions and specifications of Tender T-257-17. 2. That the funding required annually in the amount be drawn from the respective operating account. Corporation of The Municipality of Clarington 40 Temperance Street, Bowmanville, Ontario L1C 3A6 T(905)623-3379 Report No: PS -015-17 Page 2 Recommended by: i` David Ferguson, Manager, Purchasiv Services Concurrence: Fred HorvathN I Director of Operations Approved by: Andrew Ilis n, B. Comm., LLB. Chief Administrative Officer MM\DF\sm Nj�t � 0� "Iz l -f Date cc: M. Marano, Director, Corporate Services Date Date ort No: PS -015-17 1. Background Page 3 A tender for the Supply and Delivery of Bulk Gas and Diesel Fuels, for an initial three (3) year contract term, with the option to extend for up to two additional one (1) year periods, was issued on a Co-operative basis by the host agency, The Region of Durham. The Municipality of Clarington's requirements were prepared in consultation with the Operations Services Department. The Region of Durham issued Tender T-257-2017 on behalf of the Municipality of Clarington and other participating Agencies. The Tender was advertised electronically on the Region's website on July 18, 2017. The tender document was downloaded by eleven (11) prospective Bidders. The tender closed on August 10, 2017. 2. Analysis Six (6) bids were received in response to the tender call. Bids were reviewed and tabulated by the Region of Durham's Purchasing Division (see Attachment 1). The results were provided to the participating Agencies and the results were forwarded to the Operations Services Department, for their review and consideration. After review and analysis of the submissions by the Municipality's Operations Services Department and the Purchasing Services Division, it was mutually agreed that the low bidder, Canada Clean Fuel, be recommended for the award of contract T-257-2017 for the Supply and Delivery of Bulk Gas and Diesel Fuels. Reference checks for Canada Clean Fuel were completed by the Region of Durham and were favourable. Given the timing of the award of this contract, approval is being sought via this report to award the first year of the initial three year contract term to Canada Clean Fuels Inc. Council Approval will be sought to award the second and third year as well as authorization to renew the contract for the two possible one year extension pending satisfactory service. Report No: PS -015-17 Page 4 3. Financial The funding required in the annual spend be drawn for the respective operating account. Queries with respect to the requirements, specifications, etc. should be referred to the Director of Operations. 4. Conclusion It is respectfully recommended that Canada Clean Fuel being the lowest compliant bidder be awarded the contract for tender T-257-2017 for the Supply and Delivery of Bulk Gas and Diesel Fuels as per the terms, conditions and specifications contained within the tender document. Attachments: Attachment 1 — Bid Tabulation ort No: PS -014-17 Page 5 Attachment #1 Municipality of Clarington Summary of Annual Bid Results T-257-2017 Supply and Delivery of Bulk Gas and Diesel Fuel Pricing shown in the table below is estimated annual spend for the Municipality of Clarington. Company Total Cost (Including Total Cost (net HST HST) Rebate) Canada Clean Fuels Inc. $150,021.06 $135,098.61 Suncor Energy Products Partnership $150,835.79 $135,832.30 Parkland Fuel Corporation $153,615.82 $138,335.80 $Refuel Canada LP $153,988.49 $138,671.41