Report to: General Committee Report
Date:
SUBJECT: Award of Request for Proposal 172-R-07
Supply and Delivery of Soft Drinks and Related Equipment
PREPARED BY: Glen Taylor, Manager, Community Centre Operations
Tony Casale, Senior Buyer,
RECOMMENDATION:
THAT the report entitled “Award of Request for Proposal 172-R-07 Supply and Delivery of Soft Drinks and Related Equipment” be received;
AND THAT Request for Proposal 172-R-07 for the Supply and Delivery of Soft
Drinks and Related Equipment be awarded to the highest ranked bidder, Coca Cola
Bottling Company for a term
of five (5) years with financial returns as per Attachment “A”;
AND THAT the Supply and Delivery of Soft Drinks and
Related Equipment contract include a clause that requires a an
increase in non carbonated drinks component from year 3 (years 1 & 2 at
50:50 carbonated vs. non carbonated) of the contract to a complete transition
into non carbonated drinks in the final year of the contract;
AND THAT the Manager of
AND THAT the $30,000.00 annual revenue towards beverage exclusivity and the one time $50,000.00 signing bonus be credited to the Partnership Revenue Account 795 797 9394 and the $50,000 signing bonus be transferred to account 087 2800 200 Life Cycle & Capital Reserve Fund;
AND THAT the $20,000.00 annual sponsorship revenue be utilized towards the Mayor’s Dinner for the Arts, Markham Theatre and the Tony Roman Memorial Hockey Tournament as outlined in financial consideration section of the report;
AND THAT the annual commission revenue be credited to the appropriate revenue account in Recreation Services;
AND THAT
EXECUTIVE SUMMARY:
Not Required
PURPOSE:
The purpose of this report is to recommend the award of the contract for the Supply and Delivery of Soft Drinks and Related Equipment.
BACKGROUND:
On
Staff reported back to General Committee on
·
suggestion that contract only be extended on condition of a phase out of
soft drinks
·
concern regarding option to extend
contract after 3 years
·
environmental concerns; cost for
additional deliveries
·
residents should have option to
choose; individual rights
·
importance of healthy drink
products
·
concerns with obesity
·
suggestion that warnings be placed on vending machines regarding the
consumption of highly sugared drinks/products
·
importance of solid, factual evidence regarding highly sugared soft
drinks
Following a lengthy discussion, Committee directed that the matter be
deferred. Members were advised that staff will report back at a later
time with some alternatives in response to the concerns expressed this
date.
The recommendation brought
forward addresses these concerns. The proposal includes phasing out carbonated soft
drinks over the term of this contract. CCBC will be placing side by side
venders in all high traffic community centers within the Town of
The vending equipment proposed have a energy management
system that automatically learns the Town’s operating hours, consumer patterns
and will turn off cooling and lighting during off peak hours.
PROPOSAL EVALUATION:
The RFP was evaluated by an evaluation team consisting of staff from
Recreation Services, Marketing and Community Partnerships and
The proposals were evaluated based on pre-established evaluation criteria
as listed in the RFP: 5% Relevant
experience of the Proponent in the marketplace for contracts of similar size
and scope; 5% Information obtained
through references provided with the submission; 15% Price of beverages; 30% Community support and sponsorship; 20% Commission payable to the Town on vending
sales; 20% Signing bonus and exclusivity
rights on sales and 5% Responsiveness to the proposal, completeness and
comprehensiveness of submission. The
overall scores are listed in the following table:
|
Bidder |
Scoring |
Rank |
|
The Coca Cola Bottling Company |
92.14 |
1 |
|
The
Pepsi Bottling Group |
83.28 |
2 |
OPTIONS/ DISCUSSION:
None
FINANCIAL CONSIDERATIONS:
The proposed
agreement represents a better arrangement for the Town of
The proposal also includes a 30% commission on vending sales which equates to an estimated $52,700 per annum, an increase of $4,700 per annum over the current contract. In addition, Coca Cola Bottling Company has offered an in kind Product Allowance to support events like Canada Day, Milliken Mills Children’s festival, a Community Initiatives fund that could be utilized for staff incentives, volunteer appreciation , internal promotions & charity events and a Concession Marketing Fund that could be used to replace existing dressing room chalkboards ($2,500 each fund per annum).
A reciprocity agreement with Coke requires the Town to provide in kind contribution like tickets to the Markham Theatre, use of ice pads and soccer facilities and rink board advertising at an estimated annual value of $3,600 as well as corporate exposure on all promotional materials relating to events sponsored by them.
ENVIRONMENTAL CONSIDERATIONS:
The Coca Cola Bottling Group recognizes their responsibilities to the environment and as such offer a variety of options including energy efficient coolers (Econo-cool) for all facilities, which offer energy savings of 52% over traditional coolers. The Coca Cola Bottling Company promotes youth fitness and have also launched a global partnership with the World Wildlife Fund (WWF) to conserve and protect freshwater resources.
ACCESSIBILITY CONSIDERATIONS:
ENGAGE 21ST CONSIDERATIONS:
BUSINESS UNITS CONSULTED AND AFFECTED:
The Finance and Legal Departments have reviewed this report and their comments have been incorporated.
RECOMMENDED BY:
_________________________________________
Barbara Roth, Director, Recreation Services
_________________________________________
Allan
Seabrooke, Commission Lead
_________________________________________
Andy
Taylor, Commissioner, Corporate Services
ATTACHMENTS:
Attachment “A” – Financial Details
ATTACHMENT A
Table 1 below outlines that the recommended agreement is estimated at $592,000 over the 5 year term
TABLE
1: FINANCIAL DETAILS
