Item - 2020.BA113.2

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 (December 3, 2020) from the Chief Procurement Officer:

Solicitation Number:

Request for Quotations (RFQ) Number Doc 2467530267.

Description:

For the non-exclusive provision of Processing Services for up to 30,000 tonnes annually of Yard Waste (YW) with or without Haulage Services; from one (1) or more Suppliers to ensure Processing redundancy and manage seasonal YW generation, for a term of three (3) years from the date of award, with an option to extend the contract for one (1) additional two (2) year period, in accordance with the provisions and specifications contained in the Request for Quotation.

Should the option(s) be exercised, the General Manager of Solid Waste Management Services will request the Chief Procurement Officer to process the renewal under the same terms and conditions.

This Request for Quotation (RFQ) permits two (2) contracts to be awarded in multiple ways in combination with the lowest bid price received for each tonnage option. Contract A for 10,000 tonnes and Contract B for 20,000 tonnes, both with City of Toronto providing haulage (Suppliers facility located less than 161 km) represent the best value to the City when compared to the options in which the Supplier provides haulage (Contract C and D). For fair evaluation purposes, a value of $3.48/km tonne was used to calculate the self-service cost to the City for providing haulage services from Toronto to the Suppliers facility. This procurement also included provisional optional pricing for an additional 5,000 tonnes processing capacity per year and bagging of compost – inclusive of transport & compost material per contract year. These optional services have been assumed fully exercised into the contract award value indicated below. The cost calculations below also reflect an estimated 3 percent increase in the Consumer Price Index commencing from year 2 of the contract, in accordance with the RFQ.

Recommended Suppliers:

1.  Contract A – 10,000 Tonne Capacity: Miller Waste Systems Inc.

2.  Contract B – 20,000 Tonne Capacity: Walker Environmental Group Inc.

Contract Award Value:

1.  Miller Waste Systems Inc. -- Contract A

From December 1, 2020 to November 30, 2023

$2,410,902 net of all applicable taxes and charges (incl. $803,634 for 3 years provisional pricing for optional tonnage and bagged compost)

$2,724,319 including HST and all applicable charges

$2,453,334 net of HST recoveries

Option Period: December 1, 2023 to November 30, 2025

$1,730,224 net of all applicable taxes and charges (incl. $576,741 for 2 years provisional pricing for optional tonnage and bagged compost)

$1,955,153 including HST and all applicable charges

$1,760,676 net of HST recoveries

The total potential cost for Contract A including the optional period and optional services is $4,214,010 net of HST recoveries, $4,141,126 net of all taxes and charges and, $4,679,472 including HST and applicable charges.

2.  Walker Environmental Group Inc. – Contract B

From December 1, 2020 to November 30, 2023

$3,405,386 net of all applicable taxes and charges (incl. $1,056,302 for 3 years provisional pricing for optional tonnage and bagged compost)

$3,848,087 including HST and all applicable charges

$3,465,321 net of HST recoveries

Option Period: December 1, 2023 to November 30, 2025

$2,422,852 net of all applicable taxes and charges (incl. $736,993 for 2 years provisional pricing for optional tonnage and bagged compost)

$2,737,823 including HST and all applicable charges

$2,465,494 net of HST recoveries

The total potential cost for Contract B including the optional period and optional services is $5,930,815 net of HST recoveries, $5,828,238 net of all taxes and charges and, $6,585,909 including HST and applicable charges.

Contracts are expected to start on December 1, 2020, and end on November 30, 2023, with the option to renew the Contracts for one (1) additional two (2) year period.

The total potential award for two (2) contracts identified in this report including all option years is $9,969,364 net of all applicable taxes and charges, $11,265,382 including HST and applicable charges. The total potential cost to the City is $10,144,825 net of HST recoveries.

Solicitation Issued: August 10, 2020                   Solicitation Closed: September 14, 2020

Number of Addenda Issued: Three (3)

Number of Bids:  Four (4)

Table 2: Summary of Bids Received for Request for Quotation (RFQ) Number Doc. 2467530267.

Contract A – 10,000 Tonnes without Haulage

*Submission did not pass Mandatory Submission and Qualification Requirements

Contract B – 20,000 Tonnes without Haulage

*Submission did not pass Mandatory Submission and Qualification Requirements

Contract C – 10,000 Tonnes with Haulage

Contract D – 20,000 Tonnes with Haulage

** Bid prices for initial term of contract (3 Years). The Contract Award Values shown on page 2 and 3 include optional services commencing in year 1 and a 3 percent CPI adjustment commencing in year 2 of the contract, in accordance with the Request for Quotation (RFQ). Conversely, the Summary of Bids above includes H.S.T only.