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Corporate Services
Report
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Report To: General Government Committee
Date of Meeting: June 18, 2018
Report Number: COD -021-18 Resolution: GG -360-18
File Number: CL2016-9 By-law Number:
Report Subject: Supply and Delivery of Tandem Diesel Dump Truck(s) with Plow
Eauioment
Recommendations:
That Report COD -021-18 be received;
2. That Premier Truck Group having satisfactorily supplied one dump truck with plow
equipment under CL2016-9 and approved in Report PS -006-16 be granted authority to
have their contract extended for an optional year for the supply and delivery of three
tandem diesel dump trucks with plow equipment with a 2018 total bid amount of
$748,137.48 (Net of HST) as required by the Operations Department;
3. That funds required for this project in the amount of $748,137.48 (Net of HST) be drawn
from the following accounts:
CI
Fleet Roads -Replacement (2018) 110-36-388-83642-7401 $249,379.16
New Fleet -Roads (2018) 110-36-388-83643-7401 $498,758.32
That the required additional funding of $28,137.48 above the $720,000 budget be
approved as follows:
Operations Equipment R/F
Operations Development Charges R/F
Municipal Capital Works R/F
$ 9,379.16
$16,882.49
$ 1,875.83
5. That all interested parties listed in Report COD -021-18 and any delegations be advised
by the Corporate Services Department of Council's decision regarding the award.
Municipality of Clarington
Report COD -021-18
Report Overview
Page 2
To request authorization from Council to extend contract CL2016-9 and award three Tandem
Diesel Dump Trucks with Plow Equipment.
1. Background
1.1 The authorization to award CL2016-9 for the Supply and Delivery of One Tandem Diesel
Dump Truck to Premier Truck Group was granted during Summer Council Recess in
Report PS -006-16.
1.2 The Tender CL2016-9 was issued by the Purchasing Services Division and advertised
electronically on the Municipality's website. Over 800 bidders that have a free Vendor
Account registered with the Municipality's Bidding System and have selected this
commodity as being relevant to their business received an email notification to bid on this
opportunity. Notification of the availability of the document was also posted on the
Ontario Public Buyer's Association website. Seven companies downloaded the
document. One submission was received in response to the tender call. The submission
was deemed compliant.
1.3 Premier Truck Group has successfully supplied one dump truck per the terms and
conditions of the tender document. Pending satisfactory service and pricing, contract
CL2016-9 provided for the option to extend up to four additional one year terms for the
purchase of similar tandem diesel dump trucks with plow equipment as required.
Approval is being requested to utilize this option provided the 2018 price is the
approximate price of the bid price approved in Report PS -006-16.
1.4 The Operations Department provided the 2018 specifications for three dump trucks with
plow equipment; one unit is to replace unit 04-516 and the other two units are new
additions to the fleet as required.
1.5 The specifications for the three 2018 dump trucks with plow equipment have the same
specifications as the dump truck with plow equipment awarded in contract CL2016-9.
The Purchasing Services Division exercised its right under the terms and conditions of
CL2016-9 to request pricing from Premier Truck Group for three similar tandem diesel
dump trucks with plow equipment.
2. Analysis
2.1 In 2016 Premier Truck Group supplied a dump truck with plow equipment through
CL2016-9 at a cost of $242,188.80 (Net of HST). As noted above, the Purchasing
Services Division exercised its right under the terms and conditions of the contract and
requested a quote from Premier Truck Group for three (3) 2018 tandem diesel dump
trucks with plow equipment. Premier Truck Group quoted a 2018 unit cost per truck of
$250,396.76 (Net of HST) totalling $751,190.28 (Net of HST) for the three (3) trucks (see
Attachment #1).
Municipality of Clarington Page 3
Report COD -021-18
2.2 In keeping with the terms and conditions of CL2016-9, the Purchasing Services Division
entered negotiations with Premier Truck Group and secured a discount of $1,017.60 (Net
of HST) per truck for an overall savings of $3,052.80 (Net of HST) for the three (3) trucks.
The final negotiated price per truck is $249,379.16 (Net of HST) totalling $748,137.48
(Net of HST), resulting in an overall increase of 3% on the 2016 truck price.
2.3 After review and analysis of the submission by the Operations Department and the
Purchasing Services Division, it was mutually agreed that the contract with Premier Truck
Group be extended for an optional year in order to facilitate the supply and delivery of
these trucks. It was further agreed that the price quoted by Premier Truck Group was fair
and reasonable.
3. Financial
3.1 The funding required for this project is $748,137.48 (Net of HST). The approved budget
for this project is $724,000.00 (Net of HST) thereby leaving a shortfall of $28,137.48 (Net
of HST). It is being requested that the shortfall be funded from the additional sources and
values provided in the section below. If approved the purchase will be funded by the
Municipality as follows:
Roads Fleet -Replace (2018) 110-36-388-83642-7401 $240,000.00
Add'I Funding Required (Operations Equip R/F) $ 9,379.16
Total Fleet Replacement $249,379.16
Roads Fleet -New (2018) 110-36-388-83642-7401 $480,000.00
Add'I Funding Required - D/C Operations R/F (90%) $ 16,882.49
Add'I Funding Required - Mun Cap Works R/F (10%) $ 1,875.83
Total New Fleet $498,758.32
3.2 The Operations Department and the Purchasing Services Division concurred that the
Municipality should auction the decommissioned dump truck unit #04-516 for sale. The
cost for the supply and delivery of the three dump trucks does not include the possible
credit from the sale of the decommissioned dump truck.
3.3 Queries with respect to Departmental needs should be referred to the Director of
Operations.
4. Concurrence
This report has been reviewed by the Director of Operations who concurs with the
recommendations.
Municipality of Clarington
Resort COD -021-18
5. Conclusion
Page 4
It is respectfully recommended that Premier Truck Group, with a 2018 bid in the amount
of $748,137.48 (Net of HST) have contract CL2016-9 extended for the supply and
delivery of three tandem diesel dump trucks with plow equipment.
4��Submitted by: Reviewed b .
Marie Marano, H.B. Sc., C.M.O. Andrew C. Allison, B. Comm., LLB.
Director of Corporate Services Chief Administrative Officer
Nancy Taylor, BBA, CPA, CA.
Director of Finance/Treasurer
Staff Contact: David Ferguson, Purchasing Manager, 905-623-3379 x2209 or
dferguson@clarington.net
Attachments:
Attachment 1 — Summary of Bid Results for Tender CL2016-9
Municipality of Clarington
Attachment 1 to
Report COD -021-18
Municipality of Clarington
Summary of Bid Results
Tender CL2016-9
Supply and Delivery of Tandem Diesel Dump Truck(s) with Plow
Equipment
*The 2016 Total Bid (Net of HST) included the cost of one truck ($242,188.80), manuals
($1,017.60) and a trade in credit (-$6,105.60). The 2018 trucks do not require the purchase of
repair and parts manuals and the replacement truck with be auctioned (no trade in credit).
1 Truck
3 Trucks
Bidder
2016 Total Bid*
2018 Total Bid*
(Net of HST)
(Net of HST)
Premier Truck Group
$237,100.80
$748,137.48
*The 2016 Total Bid (Net of HST) included the cost of one truck ($242,188.80), manuals
($1,017.60) and a trade in credit (-$6,105.60). The 2018 trucks do not require the purchase of
repair and parts manuals and the replacement truck with be auctioned (no trade in credit).