Report to: General Committee                                                 Report Date: September 5, 2008

 

 

SUBJECT:                          Award of Tender 197-T-08 Articulated Tractors & Four Wheel Drive Compact Tractors

PREPARED BY:               Laurie Canning, Manager, Fleet and Supplies

                                            Patti Malone, Senior Buyer

 

 

RECOMMENDATION:

THAT the report entitled “Award of Tender 197-T-08, Articulated Tractors & Four Wheel Drive Compact Tractors” be received;

 

AND THAT the contract for Tender 197-T-08, Articulated Tractors & Four Wheel Drive Compact Tractors be awarded to the lowest priced qualified bidders, Hutchinson Farm Supply Inc. in the amount of $126,032.76 exclusive of GST and Cubex Limited in the amount of $245,841.52 exclusive of GST;

 

AND THAT the supply and installation of optional pumps and valves for the articulated tractors be awarded to Cubex Limited in the amount of $7,560.00 exclusive of GST;

 

AND THAT an amount of $12,960.00 exclusive of GST be established to cover the supply and installation of AVL / GPS systems and Markhamizing costs;

 

AND THAT the cost of $392,394.00 for this contract be funded from the following sources; $235,236.00 from Development Charges Reserve Fund, $26,137.00 from the Capital Contingency account and $131,021.00 from the Life Cycle Reserve fund;

 

AND THAT a new 2008 capital budget account be established for the acquisition of these assets.

 

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

 

EXECUTIVE SUMMARY:

Not Required

1. Purpose                                2. Background                      3. Discussion                        4. Financial        

 

5. Others (Environmental, Accessibility, Engage 21st, Affected Units)                        6. Attachment(s)

 

PURPOSE:

The purpose of this report is to award the contract for the supply and delivery of two (2) articulated Tractors and three (3) Four Wheel Drive Compact Tractors.

 

BACKGROUND:

On June 23rd staff brought a report/presentation to General Committee highlighting the bid prices received for sidewalk winter maintenance and the impact to the future operating budgets.  At this committee meeting Council directed staff to investigate options to reduce the net cost of the awards and resulting impacts to future operating budgets. Therefore staff retained the services of a winter maintenance consultant to assist in reviewing winter maintenance operational options. Following this review, staff followed-up on one of the recommendations of the Consultant to pursue the in-house option of servicing sidewalks for one geographical area (total original bids were 6 areas).

 

The option to bring the sidewalk service in-house requires the hiring of part-time staff and the purchase of additional equipment; two (2) articulated, trackless tractors and three (3) four wheel drive compact tractors.  The Town currently owns one (1) articulated, trackless tractor which will be utilized for this area. 

 

 

OPTIONS/ DISCUSSION:

Staff recommends purchasing additional two (2) pumps and valves valued at $7,560.00 inclusive of PST which will provide the versatility of mounting a front cutting deck for improved year round equipment utilization and provide a savings of $1,500.00 per unit as installing this option after the production of the tractor is very labour intensive.

 

Staff further recommends installing an AVL/GPS system for the 6 units (one unit already exists in the fleet), including Markhamizing costs of each unit for approximately $12,960.00 inclusive of PST.  The installation of these systems will improve equipment deployment and provide performance tracking that will improve overall service delivery.

 

FINANCIAL CONSIDERATIONS AND TEMPLATE: (external link)

Equipment Description

Qty

Total Costs

(See Attachment)

Development Charges

Capital Contingency

Life Cycle

Total Funding

Four Wheel Driver Tractor and Attachments

3

 $ 132,513

 $ 119,261

 $ 13,251

 

 $ 132,513

 

Articulated Tractor and Attachments*

2

 $ 259,881

 $ 115,975

 $ 12,886

 $131,021

 $ 259,882

Total

5

 $ 392,394

 $ 235,236

 $ 26,137

 $131,021

 $ 392,394

One Articulated Tractor/attachments is a replacement of an existing tractor and therefore will not be funded from Development Charges.  Four of the five units are being purchased due to growth and will be funded as follows:  90% of Development Charges/ 10% Capital Contingency. One of the units is a replacement unit (unit 1420) and will be funded from Life Cycle.

 

The sidewalk winter maintenance contract was awarded to the two (2) lowest proponents for four (4) geographical areas.  The next lowest bidder was $474,400 verses approximately $380,000 for providing the service in-house.  The in-house service will reduce the impact to the annual operating budget by approximately $94,400.

 

Staff did not contemplate bringing in-house a portion of this contract, as such, the acquisition of these assets was not included in the 2008 approved capital budget.

BID INFORMATION

Advertised, place and date

ETN

Bids closed on

August 29, 2008

Number of Vendors picking up bid documents

18

Number of Vendors responding to bid

7

 

 

DETAILED PRICING INFORMATION:

Contractor

Articulated Tractor

(Inclusive of PST and Exclusive of GST)

Four Wheel Drive Tractor

(Inclusive of  PST and Exclusive of GST) *

Cubex Limited

$245,841.52

No Bid 

Joe Johnson Equipment Inc.

$250,166.88

No Bid  

W.J. Lambert & Sons Ltd.

$345,600.00

$143,532.00

G.C. Duke Equipment Ltd.

$351,000.00

No Bid  

Hutchinson Farm Supply Inc.

No Bid

$126,032.76

B.E. Larkin Equipment

No Bid

$130,102.20

*One bidder was disqualified as they did not meet the specifications.

 

ENVIRONMENTAL CONSIDERATIONS:

The five (5) units in this award are diesel powered with 4 cylinder engines and is tier III emission compliant, thus being compatible with current bio diesel fuel blends used in all diesel powered fleet units.

 

ACCESSIBILITY CONSIDERATIONS:

None

 

ENGAGE 21ST CONSIDERATIONS:

None

 

BUSINESS UNITS CONSULTED AND AFFECTED:

The Finance Department has reviewed this report and their comments have been incorporated.

 

RECOMMENDED

                                      BY:    _________________________________________________         

                                      Paul Ingham, General Manager, Operations

 

                                      _________________________________________________

                                      Peter Loukes, Director, Operations

 

                                      _________________________________________________

                                      Brenda Librecz, Commissioner, Community & Fire Services

 

                                      _________________________________________________

                                      John Livey, Chief Administrative Officer

 

 

ATTACHMENTS:

Bid Analysis / Detailed Financial Summary