Item - 2023.BA50.2

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 (October 12, 2023) from the Chief Procurement Officer:

Solicitation Number:

Request for Quotation, Ariba Document Number 3970716559   

Description:

For the non-exclusive supply and delivery of Sodium Chloride and Saline Solutions to various Purchasing and Materials Management (Stores) locations from the date of award to July 31, 2024, with the option to renew the Contract for four (4) additional separate one (1) year periods at the sole discretion of the City and subject to budget approval.  

The Request for Quotation is structured to award 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, 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 first 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:

Cardinal Health  

Contract Award Value:

$235,264 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$265,848 including HST and all applicable charges

$239,404 net of HST recoveries

Contract is expected to start on date of award and end on July 31, 2024   

Option Year 1 (August 1, 2024 to July 31, 2025)         

$242,322 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$273,823 including all applicable taxes and charges

$246,587 net of HST recoveries

Option Year 2 (August 1, 2025 to July 31, 2026)         

$249,591 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$282,038 including all applicable taxes and charges

$253,984 net of HST recoveries

Option Year 3 (August 1, 2026 to July 31, 2027)         

$257,079 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$290,499 including all applicable taxes and charges

$261,604 net of HST recoveries

Option Year 4 (August 1, 2027 to July 31, 2028)         

$264,791 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$299,214 including all applicable taxes and charges

$269,452 net of HST recoveries

The total potential combined contract award identified in this report including option years is $1,249,047 net of all applicable taxes and charges, $1,411,423 including all applicable taxes and charges. The total potential cost to the City including option years is $1,271,030 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:  May 15, 2023       Solicitation Closed: June 13, 2023

Number of Addenda Issued: One (1)   

Number of Bids: Five (5)   

Table 2: Summary of Bids received including bid price

*Supplier found to be non-compliant with mandatory requirements.