Item - 2023.BA30.11

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 (June 1, 2023) from the Chief Procurement Officer:

Solicitation Number:

Kinetic GPO Request for Standing Offers Number: 22-08

Description:

Kinetic GPO is a cooperative purchasing organization established for Broader Public Sector and MASH entities across Canada, with the specific purpose of reducing procurement cost by leveraging the purchasing power of group buying and saving our members time by simplifying steps to procure. Kinetic GPO issued the Request for Standing Offers to result in a national contract Request for Standing Offers 22-08 with The Toro Company for the procurement of Grounds Maintenance Equipment, attachments, Accessories, and Related Services. The effective date of the Kinetic GPO Contract is from February 1, 2023 and will expire on January 31, 2026 with option to renew for two (2) additional one-year periods through January 31, 2028.

After reviewing this Kinetic GPO’s Request for Standing Offers 22-08, Fleet Services in conjunction with Parks, Forestry and Recreation will piggyback on this Kinetic GPO Contract with the Toro and issue a purchase order to their local dealer, Turf Care Products Canada Limited to purchase twenty-four (24) Various Grounds Maintenance Equipment in 2023, with option to purchase fifty-nine (59) units in 2024 and sixty-four (64) units in 2025, pending budget availability. Should the option year renewal be extended by Kinetic GPO, Fleet Services may purchase forty-three (43) units in 2026 and eighteen (18) units in 2027, pending budget availability. The term of this contract is three (3) year which commenced in 2023, with the option to extend for two (2) additional one-year term under the same terms and conditions from date of award to January 31, 2028.

Recommended Supplier:

Turf Care Products Canada Limited

Contract Award Value:

$12,908,009 net of all applicable taxes and charges

$14,886,050 including HST and all applicable charges

$13,135,189 net of HST recoveries

Contract is expected to start from date of award and end on January 31, 2026

Option Year 1 – From February 1, 2026 to January 31, 2027

$3,773,640 net of all applicable taxes and charges

$4,264,213 including HST and all applicable charges

$3,840,056 net of HST recoveries

Option Year 2 – From February 1, 2027 to January 31, 2028

$1,832,731 net of all applicable taxes and charges

$2,070,986 including HST and all applicable charges

$1,864,987 net of HST recoveries

The above cost calculations include three percent (3 percent) Consumer Price Index cost adjustment applied to each term after the initial one (1) year contract period.

The total potential contract award identified in this report including all option years is $18,514,380 net of all applicable taxes and charges. The total potential cost to the City, including all optional periods is $18,840,233 net of HST recoveries.

Solicitation Issued: September 23, 2022

Solicitation Closed: November 18, 2022

Number of Addenda Issued: None

Number of Bids: Twenty (20)

Notice of Award: January 27, 2023