Director, Purchasing and Materials Management
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1 BD44.14 BID COMMITTEE CONTRACT AWARD Award of Request for Quotation No to Inter-Provincial Painting Limited for Painting Services at various City of Toronto's Children s Services locations Date: August 17, 2015 To: From: Bid Committee Director, Purchasing and Materials Management RECOMMENDATIONS The Director, Purchasing and Materials Management recommends that the Bid Committee grant authority to award the following contract: Call No: RFQ No Description: For the supply of all materials, labour, supplies and equipment required for Painting Services at various Children s Services locations from the date of award to July 31, 2016, with the option to renew the contract for additional four (4) separate one (1) year periods at the sole discretion of the City and subject to budget approval(s). Prior to the renewal of the contract, PMMD will perform a market analysis to verify the current market conditions as compared to the proposed increase by the vendor and that Materials Management and Stores will monitor vendor performance during the first term of the contract. Should the option(s) be exercised, then the Program Manager, Asset Management Unit will request the Director of Purchasing and Materials Management to process the renewals under the same terms and conditions. Recommended Bidder: Contract Award Value: Inter-Provincial Painting Limited Contract is expected to start from the date of award and end on July 31, Option Year 1 August 1, 2016 to July 31, 2017 Report to Bid Committee on award of Request for Quotation No
2 Option Year 2 Aug 1, 2017 to July 31, 2018 Option Year 3 Aug 1, 2018 to July 31, 2019 Option Year 4 Aug 1, 2019 to July 31, 2020 $276, net of all applicable taxes and charges $312, including all applicable taxes and charges $281, net of HST recoveries As the escalation rate is above 3% (for option year 4), funding approval will be granted if the following conditions are adhered to: A market analysis will be performed by PMMD to verify the current market conditions as compared to the proposed increase by the vendor; The Division requesting the appropriate budget approval will ensure budget availability; The Division is to monitor vendor performance during the term of the contract; and It's at the sole discretion of the City to exercise the option year, not the vendor. The total potential cost to the City, including the option years, is $1,354, net of HST recoveries. The total potential contract award, including the option years, is $1,503, including all applicable taxes and charges, $1,330, net of all applicable taxes and charges. Financial Impact: The total potential contract award identified in this report, including all option years, is $1,503, including all applicable taxes and charges. The total potential cost to the City, including all option years is $1,354, net of HST recoveries. Funding in the amount of $111, is included in the 2015 Approved Operating Budget for Children s Services. Funding in the amount of $156, for the balance of the contract period (January 1 to July 31, 2016) will be included in the 2016 Operating Budget Submission for Children s Services. Should the City choose to exercise its option to renew for an additional four (4) separate one (1) year periods, then appropriate additional funding, if needed, will be included in Report to Bid Committee on award of Request for Quotation No
3 the annual Operating Budget Submissions for Children s Services. The funding details are provided below: Period Cost Centre: E0552M Cost Element: 4407 Cost Centre: CCS013 Cost Element: 4407 Date of Award to December 31, 2015 $55, $55, January 1, 2016 to July 31, 2016 $78, $78, Total (net of HST recoveries) Total: Contract Period $134, $134, $268, Total: 2015 Budget Year $55, $55, Aug 1, 2016 to December 31, 2016 $55, $55, January 1, 2017 to July 31, 2017 $78, $78, Total: Option Year 1 $134, $134, $268, Total: 2016 Budget Year $134, $134, Aug 1, 2017 to December 31, 2017 $55, $55, January 1, 2018 to July 31, 2018 $78, $78, Total: Option Year 2 $134, $134, $268, Total: 2017 Budget Year $134, $134, Aug 1, 2018 to December 31, 2018 $55, $55, January 1, 2019 to July 31, 2019 $78, $78, Total: Option Year 3 $134, $134, $268, Total: 2018 Budget Year $134, $134, Aug 1, 2019 to December 31, 2019 $58, $58, January 1, 2020 to July 31, 2020 $82, $82, Total: Option Year 4 $140, $140, $281, Total: 2019 Budget Year $136, $136, Total: 2020 Budget Year $82, $82, Grand Total (Contract period & all Option Periods) $1,354, Report to Bid Committee on award of Request for Quotation No
4 CALL SUMMARY Ward No: All Call Dates: Issued: June 4, 2015; Closed: June 19, 2015 # of Addenda Issued: One (1) Number of Bids: Four (4) Firm Name 1. Inter-Provincial Painting Limited 2. Calverley Painting & Decorating Ltd. 3. P.S. Painting Limited 4. Canadian Restorations GTA, Inc. Bid Price (Including HST) $282, (including 5% prompt payment discount) $297, (including 2% prompt payment discount) $353, $1,636, * * Bid prices were corrected for mathematical errors. Purchasing and Materials Management has verified that the mathematical errors were corrected. Division Contacts Joanne Kehoe, Manager, Construction Services Purchasing & Materials Management Telephone: (416) jkehoe@toronto.ca John Doolittle, Facilities Supervisor, Children s Services Telephone: (416) jdoolit@toronto.ca COMMENTS For the recommended contract award, the following requirements have been met: (a) The firm recommended for award is the lowest bidder meeting specifications or to the highest scoring proponent based on the evaluation criteria included in the call and meeting the requirements of the call; (b) the appropriate Division has reviewed submissions and found the price to be reasonable, within available budget and concurs with the recommendation; (c) the total contract value is less than $20 million dollars (excluding applicable taxes) and the contract term is: i. for a contract funded by the operating budget, 5 years or less including any option years; or ii. for a contract funded by the capital budget, within the projected term of the capital funding for the project as set out in the capital budget, being within the authority of the Bid Committee; Report to Bid Committee on award of Request for Quotation No
5 (d) there are no material written objections to the award; (e) the call document was advertised on the City s internet website and bids or proposals were opened publicly; and (f) the Fair Wage Office confirms the recommended firm understands the Fair Wage Policy and Labour Trades requirements and has agreed to comply fully. Additional details and information for the above calls are on the file in the Purchasing and Materials Management Division. Michael Pacholok Director, Purchasing and Materials Management Division Report to Bid Committee on award of Request for Quotation No
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