Item - 2023.BA30.5

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:

Request for Quotation, Ariba Document Number 3866496418

Description:

For the maintenance of pump and motor systems all in strict accordance with the Electrical Safety Authority Guidelines and Original Equipment Manufacturer specifications, best trade practices to maintain the equipment as new condition, to the highest industry standards, for the following Divisions:

1. Corporate Real Estate Management

2. Parks, Forestry and Recreation

3. Solid Waste Management Services

The award is for an initial contract period of three (3) years from July 1, 2023 to June 30, 2026, with an option in favour of the City to extend the contract on the same terms and conditions for an additional term of up to two (2) separate one (1)-year periods.

Should the option(s) be exercised, the Divisions will request the Chief Procurement Officer to process the renewals under the same terms and conditions.

Recommended Supplier:

Carson Electric (1991) Limited/Anronn Electric

Contract Award Value:

$2,830,452 net of all applicable taxes and charges

$3,198,411 including HST and all applicable charges

$2,880,268 net of HST recoveries

Contract is expected to start on July 1, 2023 and end on June 30, 2026.

Option Year 1 - From July 1, 2026 to June 30, 2027

$971,789 net of all applicable taxes and charges

$1,098,121 including HST and all applicable charges

$988,892 net of HST recoveries

Option Year 2 - From July 1, 2027 to June 30, 2028

$1,000,942 net of all applicable taxes and charges

$1,131,065 including HST and all applicable charges

$1,018,559 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 Request for Quotation was structured to award the contract for an initial period of three (3) years from date of award. Following the evaluation, Corporate Real Estate Management and Solid Waste Management Services have determined the need to increase their requirements due to inflationary pressures on parts and additional usage. Lowest Bidder's total bid price was updated to reflect the contract value for three years with 17.41 percent contingency.

The total potential contact award to supplier identified in this report including all option years is $4,803,183 net of all applicable taxes and charges, and $5,427,597 including all applicable taxes and charges. The total potential cost to the City, including all option years is net of $4,887,719 HST recoveries.

Solicitation Issued:  March 10, 2023    Solicitation Closed:  April 18, 2023

Number of Addenda Issued: Three (3)

Number of Bids:  One (1)

Table 2: Summary of Bids Received including bid price

* The Bid Price is based on the quantity for the first year.