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HomeMy WebLinkAboutFND-021-20Staff 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: June 22, 2020 Report Number: FND-021-20 Submitted By: Trevor Pinn, Director of Finance/Treasurer Reviewed By: Andrew C. Allison, CAO File Number: CT-539A-20 Resolution#: By-law Number: Report Subject: Supply, Delivery and Application of Calcium Chloride, Magnesium Chloride or Calcium-Magnesium Blend Recommendations: 1.That Report FND-021-20 be received; 2.That Miller Paving Ltd. with an annual bid amount of $102,004.00 (Net HST Rebate) being the lowest compliant bidder meeting all terms, conditions and specifications of tender CT-539A-20 be awarded the contract for an initial one-year term for the supply, delivery and application of calcium chloride, magnesium chloride or calcium- magnesium blend, as required by the Operations Department; 3.That pending satisfactory performance, the Purchasing Manager, in consultation with the Acting Director of Operations, be given the authority to extend the contract for this service for up to two additional one-year terms; 4.That the funds required for this project in the amount of $102,004.00 (Net HST Rebate) be funded by the Municipality as follows: Description Account Number Amount Winter Control / Winter Mtnce- Plow/Sand/Salt / Misc Oper Supply 100-36-383-10300-7112 $102,004 5.That all interested parties listed in Report FND-021-20 and any delegations be advised of Council’s decision. Municipality of Clarington Page 2 Report FND-021-20 1. Background 1.1 A tender for the supply, delivery and application of calcium chloride, magnesium chloride or calcium-magnesium blend was issued on a Co-operative basis with the Municipality of Clarington, Town of Ajax, City of Oshawa, City of Pickering, Township of Scugog and the Town of Whitby participating. The host agency for the tender call was the Town of Whitby. 1.2 The tender was divided into the following three options and bidders could provide quotes for one or more options: Option #1 is for the supply, delivery and application of 35% Liquid Calcium Chloride; Option #2 is for the supply, delivery and application of 30% Liquid Magnesium Chloride; or, Option #3 is for the supply, delivery and application of 35% Liquid Calcium Magnesium Blend. 1.3 The contract resulting from this tender included the supply, delivery and application of the lowest price option as all three options can be effectively used as dust suppressant on the granular portion of the roadbed. The contract is for a one-year term, with the option to extend for two additional one-year terms, pending satisfactory pricing, vendor performance and budget approval. 1.4 The tender was publicly advertised on the Town of Whitby’s website. 1.5 Six plan takers download the tender document. 2. Analysis 2.1 The Request for Tender closed on April 2, 2020. 2.2 Two submissions were received in response to the tender call, both were deemed compliant. 2.3 Of the four companies who downloaded the tender document but chose not to submit pricing: Report Overview To request authorization from Council to award CT-539A-20 for the Supply, Delivery and Application of Calcium Chloride, Magnesium Chloride or Calcium-Magnesium Blend. Municipality of Clarington Page 3 Report FND-021-20 One company decided they were unable to bid due to current workload; Two companies, after review of the tender document, did not manufacture/supply this commodity; and One company did not provide a response. 2.4 After review of the bid by the Municipality of Clarington’s Purchasing Division and the Operations Department and the Durham Purchasing Co-operative, it was mutually agreed that the low, compliant bidder Miller Paving Ltd. be awarded the contract for the supply, delivery and application of calcium-magnesium blend (Option #3). 2.5 Miller Paving Ltd. was the incumbent vendor for the previous tender contract and the level of service has been satisfactory. 3. Financial 3.1 The annual funding required for this project is $102,004 (Net HST Rebate) and is in the approved budget allocation as provided and will be funded from the following account: Description Account Number Amount Winter Control / Winter Mtnce- Plow/Sand/Salt / Misc Oper Supply 100-36-383-10300-7112 $102,004 3.2 Pricing submitted for the supply, delivery and application of calcium-magnesium blend is to remain firm for the first year of the contract. Should the contract be extended for additional years, the unit prices would be adjusted on the anniversary date of the contract award by the annual percentage change in the most recent issuance of the Consumer Price Index (CPI), All Items, Ontario as published by Statistics Canada and the pricing will remain firm for the contract year. 3.3 The total estimated contract for one year plus two optional additional years is approximately $306,013 (Net HST Rebate). 3.4 Queries with respect to the department needs should be referred to the Acting Director of Operations. 4. Concurrence This report has been reviewed by the Acting Director of Operations who concurs with the recommendations. Municipality of Clarington Page 4 Report FND-021-20 5. Conclusion It is respectfully recommended that Miller Paving Ltd. being the lowest compliant bidder be awarded the contract for the supply, delivery and application of calcium-magnesium blend per the terms and conditions of Co-op Tender CT-539A-20. Staff Contact: David Ferguson, Purchasing Manager, 905-623-3379 Ext 2209 or dferguson@clarington.net. Attachments: Attachment 1 – Summary of Bid Results Interested Parties: List of Interested Parties available from Department. Municipality of Clarington Page 5 Report FND-021-20 Attachment 1 to Report FND-021-20 Municipality of Clarington Summary of Bid Results Co-op Tender CT-539A-20 Supply, Delivery and Application of Calcium Chloride, Magnesium Chloride or Calcium-Magnesium Blend Bidder One-Year Total Bid (Net HST Rebate) Potential Three-Year Total Bid (Net HST Rebate) Miller Paving Limited (Option #3: 35% Liquid Calcium Magnesium Blend) $102,004.22 $306,012.67 Da-Lee Dust Control Limited (Option #1: 35% Liquid Calcium Chloride) $118,041.60 $354,124.80