Item - 2023.BA57.3

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 (November 30, 2023) from the Chief Procurement Officer:

Solicitation Number:

Request for Quotation, Doc3516672057

Description:

For refractory maintenance for incinerators at the Highland Creek Treatment Plant for the City of Toronto’s Water Division. The term of the Contract is to be for a period of two (2) years from the date of award, with an option in favour of the City to extend the agreement on the same terms and conditions for an additional term of up to three (3) additional separate one (1) year periods at the sole discretion of the City and subject to budget approval.

Should the option year(s) be exercised, then the General Manager of the Toronto Water Division will request the Chief Procurement Officer to process the renewals under the same terms and conditions.  

Recommended Supplier:

RHI Canada Inc.

Contract Award Value:

$456,273 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$515,588 including HST and all applicable charges

$464,303 net of HST recoveries

Contract is expected to start on date of award and end on November 30, 2025

Option Year 1 (December 1, 2025 to November 30, 2026)

$234,981 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$265,529 including HST and all applicable charges

$239,117 net of HST recoveries

Option Year 2 (December 1, 2026 to November 30, 2027)

$242,030 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$273,494 including HST and all applicable charges

$246,290 net of HST recoveries

Option Year 3 (December 1, 2027 to November 30, 2028)

$249,291 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$281,699 including HST and all applicable charges

$253,679 net of HST recoveries

The total potential contract award identified in this report including option years is $1,182,575 net of all applicable taxes and charges and $1,336,310 including HST and all applicable taxes and charges. The total potential cost to the City including option years is $1,203,389 net of HST recoveries.

The above cost calculations reflect an estimated three (3) percent Consumer Price Index adjustment applied annually to the yearly cost after the initial two (2) year period.

Solicitation Issued: July 28, 2023                   Solicitation Closed: September 6, 2023

Number of Addenda Issued: Three (3)

Number of Bids: Three (3)

Table 2: Summary of Bids Received including bid price

*Supplier was found non-compliant with mandatory requirements