Item - 2024.BA88.1

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 (July 11, 2024) from the Chief Procurement Officer:

Solicitation Number:

Request for Quotation Document Number 4017497897

Description:

For the non-exclusive supply of all labour, materials equipment, and parts necessary for the supply and delivery of tire services, retreading, supply of new rims and casings, storage and rim refurbishing services as and when required by the City of Toronto’s Participating Divisions, for a period of one (1) year from date of award to June 30, 2025, with an option in favour of the City to extend the contract on the same terms and conditions for an additional term of four (4) separate one (1)-year periods.

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

Recommended Suppliers:

Scotia Tire and Alignments Services Ltd. operating as Tirecraft (Lots 1-5)

Benson Group Inc. operating as Benson Tire (Lot 6)

Contract Award Value:

Scotia Tire and Alignments Services Ltd. operating as Tirecraft (Lots 1-5)

$1,718,787 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$1,942,230 including HST and all applicable charges

$1,749,038 net of HST recoveries

The contract is expected to start on date of award and end on June 30, 2025.

Option Year 1 - Date of Award to June 30, 2026

$1,770,351 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$2,000,496 including HST and all applicable charges

$1,801,509 net of HST recoveries

Option Year 2 – July 1, 2026 to June 30, 2027

$1,823,461 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$2,060,511 including HST and all applicable charges

$1,855,554 net of HST recoveries

Option Year 3 – July 1, 2027 to June 30, 2028

$1,878,165 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$2,122,327 including HST and all applicable charges

$1,911,221 net of HST recoveries

Option Year 4 – July 1, 2028 to June 30, 2029

$1,934,510 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$2,185,996 including HST and all applicable charges

$1,968,558 net of HST recoveries

The total potential contract award to including all option years is $10,311,561 including HST and all applicable charges, and $9,125,275 net of all applicable taxes and charges, and. The total potential cost to the City for Scotia Tire and Alignments Services Ltd. operating as Tirecraft, including all option years, is $9,285,880 net of HST recoveries.

Benson Group Inc. operating as Benson Tire (Lot 6)

$607,390 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$686,351 including HST and all applicable charges

$618,080 net of HST recoveries

The contract is expected to start on date of award and end on June 30, 2025.

Option Year 1 - July 1, 2025 to June 30, 2026

$625,612 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$706,941 including HST and all applicable charges

$636,622 net of HST recoveries

Option Year 2 – July 1, 2026 to June 30, 2027

$644,380 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$728,149 including HST and all applicable charges

$655,721 net of HST recoveries

Option Year 3 – July 1, 2027 to June 30, 2028

$663,711 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$749,994 including HST and all applicable charges

$675,393 net of HST recoveries

Option Year 4 – July 1, 2028 to June 30, 2029

$683,623 net of all applicable taxes and charges (including 20 percent for miscellaneous items)

$772,494 including HST and all applicable charges

$695,655 net of HST recoveries

The total potential contract award including all option years is $3,643,929 including HST and all applicable charges, and $3,224,716 net of all applicable taxes and charges. The total potential cost to the City for Benson Group Inc. operating as Benson Tire, including all option years, is $3,281,471 net of HST recoveries.

The total potential contract award including all option years for all awards is $13,955,490 including HST and all applicable charges, and $12,349,991 net of all applicable taxes and charges. The total potential cost to the City for all awards including all option years is $12,567,351 net of HST recoveries.

The above cost calculations for the Option Years reflect an estimated annual 3 percent increase as per the Consumer Price Index.

Solicitation Issued: November 20, 2023          Solicitation Closed: January 19, 2024

Number of Addenda Issued: Six (6)

Number of Bids: Five (5)

Table 5: Summary of Bids Received for Lots 1-5 including bid price

Table 6: Summary of Bids Received for Lot 6 including bid price

*The Bid Price does not include the 20 percent for miscellaneous items.