Item - 2020.BA112.6

The Bid Award Panel adopted the following:

1.  Bid Award Panel grant authority to award the contract in accordance with the Contract Details set out in the report (November 26, 2020), from the Chief Procurement Officer:

Solicitation Number:

Request for Quotation (RFQ), Ariba Doc Number 2581687870

Description:

For the non-exclusive supply and delivery of various lubricating oils, transmission fluids, hydraulic oils, gear oils and greases in Lot A, for the period of one (1) year from December 1, 2020 to November 30, 2021, with the option to renew the contracts for four (4) additional separate one (1) year periods. 

The Request for Quotation (RFQ) is structured to award two (2) separate contract(s) to the lowest Suppliers based on the Suppliers meeting specifications in the Lot A and Lot B price forms.

Should the option(s) be exercised, then the General Manager Fleet Services will request the Chief Procurement Officer to process the renewals under the same terms and conditions.

Recommended Supplier:

Petro-Canada Lubricants Inc. (Lot A)

Contract Award Value:

$ 838,003 net of all applicable taxes and charges

$ 946,943 including HST and all applicable charges

$ 852,752 net of HST recoveries

Contract is expected to start on December 1, 2020 and end on November 30, 2021

Option Year 1 from December 1, 2021 to November 30, 2022

$863,143 net of all applicable taxes and charges

$975,351 including all applicable taxes and charges

$878,334 net of HST recoveries

Option Year 2 from December 1, 2022 to November 30, 2023

$889,037 net of all applicable taxes and charges

$1,004,612 including all applicable taxes and charges

$904,684 net of HST recoveries

Option Year 3 from December 1, 2023 to November 30, 2024

$915,708 net of all applicable taxes and charges

$1,034,750 including all applicable taxes and charges

$931,825 net of HST recoveries

Option Year 4 from December 1, 2024 to November 30, 2025

$943,180 net of all applicable taxes and charges

$1,065,793 including all applicable taxes and charges

$959,780 net of HST recoveries

The total potential contract award identified in this report including all optional years is $4,449,071 net of all taxes, and $5,027,450 including all applicable taxes and charges. The total potential cost to the City, including all option years, is $4,527,374, net of HST recoveries.

The above cost calculations reflect a 20-35 percent contingency cost per participating division for unforeseen factors and 3 percent IPPI adjustment applied annually to the yearly cost after the initial one (1) year period and not reflected in the evaluated bid price noted in Table 2.

Safety Kleen Canada is to receive a contract award for the Lot B line items they were lowest Suppliers meeting specification on, including all option years, in the total amount of $58,931 net of all applicable taxes and charges, all in accordance with the Purchasing By-Law 195-8, Toronto Municipal Code Chapter 195 Article 8.1 – Authority to award – Chief Purchasing Officer.

Solicitation Issued: September 4, 2020            Solicitation Closed: October 9, 2020

Number of Addenda Issued: 3

Number of Bids: 3

Table 2: Summary of Bids Received for RFQ, Ariba Doc. Number 2581687870 including bid price