Item - 2023.BA33.7

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 22, 2023) from the Chief Procurement Officer:

Solicitation Number:

Request for Quotation, Ariba Document Number 3762762006

Description:

For the non-exclusive supply and delivery of Concentrated Chemicals to various Purchasing and Materials Management (Stores) locations from the date of award to April 30, 2024, with the option to renew the Contract for four (4) additional one (1)-year periods at the sole discretion of the City and subject to budget approval(s).  

The Request for Quotation is structured to award a contract to the lowest supplier meeting specifications and providing the lowest total bid price of the Pricing Form.

Prior to the renewal of the contract, the Purchasing and Materials Management Division will perform a market analysis to verify the current market conditions as compared to the proposed increase by the vendor and that the Stores Division will monitor vendor performance during the term of the contract.

Should the option year(s) be exercised, then the Manager of Materials Management and Stores will request the Chief Procurement Officer to process the renewals under the same terms and conditions.

Recommended Supplier:

G.K. Chemical Specialties Co. Inc.   

Contract Award Value:

$335,351 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$378,947 including HST and all applicable charges

$341,253 net of HST recoveries

Contract is expected to start on date of award and end on April 30, 2024   

Option Year 1: May 1, 2024 to April 30, 2025  

$345,411 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$390,315 including all applicable taxes and charges

$351,491 net of HST recoveries

Option Year 2: May 1, 2025 to April 30, 2026

$355,774 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$402,024 including all applicable taxes and charges

$362,035 net of HST recoveries

Option Year 3: May 1, 2026 to April 30, 2027

$366,447 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$414,085 including all applicable taxes and charges

$372,896 net of HST recoveries

Option Year 4: May 1, 2027 to April 30, 2028

$377,440 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$426,508 including all applicable taxes and charges

$384,083 net of HST recoveries

The total potential combined contract award identified in this report including option years is $1,780,423 net of all applicable taxes and charges, $2,011,879 including all applicable taxes and charges. The total potential combined cost to the City including option years is $1,811,758 net of HST recoveries.

The above cost calculations reflect a 3 percent Consumer Price Index adjustment applied annually to each year's cost after the initial one (1) year period.

Solicitation Issued: February 28, 2023           Solicitation Closed: April 5, 2023

Number of Addenda Issued: One (1)

Number of Bids: Three (3)

Table 2: Summary of Bids Received including bid price

*Bid Price does not contain the 20 percent miscellaneous items.