Item - 2023.BA4.3

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 1, 2022, from the Chief Procurement Officer:

Solicitation Number:

Request for Quotation, Ariba Document Number 3687223488

Description:

For the non-exclusive supply and delivery of Aqua Ammonia for the City of Toronto's Water Division from January 1, 2023, to September 30, 2023, with the option to renew the Contract for four (4) additional and separate one (1) year periods at the sole discretion of the City and subject to budget approval.

Should the option periods be exercised, then the General Manager, Toronto Water Division will request the Acting Chief Procurement Officer to process the renewals under the same terms and conditions.

Recommended Supplier:

Nachurs Alpine Solutions Corp.

Contract Award Value:

$639,700 net of all applicable taxes and charges

$722,861 including HST and all applicable charges

$650,959 net of HST recoveries

The contract is expected to start on January 1, 2023, and end on September 30, 2023.

Option Year 1 - October 1, 2023, to September 30, 2024

$895,335 net of all applicable taxes and charges

$1,011,729 including HST and all applicable charges

$911,093 net of HST recoveries.

Option Year 2 - October 1, 2024, to September 30, 2025

$940,102 net of all applicable taxes and charges

$1,062,315 including HST and all applicable charges

$956,648 net of HST recoveries

Option Year 3 - October 1, 2025, to September 30, 2026

$987,107 net of all applicable taxes and charges

$1,115,431 including HST and all applicable charges

$1,004,480 net of HST recoveries

Option Year 4 - October 1, 2026, to September 30, 2027

$1,036,462 net of all applicable taxes and charges

$1,171,202 including HST and all applicable charges

$1,054,704 net of HST recoveries

The total potential award including all option years is $5,083,538 including all applicable taxes and charges and $4,498,706 net of all applicable taxes and charges. The total potential Cost to the City including all option years is $4,577,883 net of HST recoveries.

The above cost calculations for the Option Periods reflect an estimated annual five (5) percent increase based on the Green Markets Price Index for Ammonia (Tampa Region).

Solicitation Issued: October 6, 2022   Solicitation Closed: November 10, 2022

Number of Addenda Issued: One (1)

Number of Bids: Two (2)

Table 2: Summary of Bids Received including bid price