The Director, Purchasing and Materials Management recommends that the Bid Award Panel grant authority to award the following contract:

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1 Award of Request for Quotation No for the provision of overflow preventative maintenance and repair services to vehicles of various classes for various City of Toronto Divisions Date: February 2, 2017 To: Bid Award Panel From: Director, Purchasing and Materials Management Wards: All BID AWARD PANEL CONTRACT AWARD BA7.3 RECOMMENDATIONS The Director, Purchasing and Materials Management recommends that the Bid Award Panel grant authority to award the following contract: Call Number: RFQ No Description: For the non-exclusive supply of all labour, materials and equipment necessary to perform overflow vehicles maintenance, repairs and inspections to various light, medium and heavy vehicles (Class 1 through Class 8), for various City of Toronto Divisions, on as as-and-when required basis, for a period of one (1) year with the option to renew the contract for four (4) additional separate one (1) year periods. The RFQ is structured to allow for contract award to the lowest bidder meeting specification requirements, known as the Primary Vendor and contract award to the second lowest bidder meeting specification requirements, known as the Secondary Vendor, for each Division. The Primary Vendor is being awarded 70% of the contract value and the Secondary Vendor is being awarded 30% of the contract value as per the award structure of the RFQ. Should the option(s) be exercised, than the General Manager or Director of each division will request the Director of Purchasing and Materials Management to process the renewals under the same terms and conditions. Report to Bid Award Panel on contract award of RFQ No Page 1 of 9

2 Recommended Bidder: 1) John Vidal Enterprise Inc., O/A Portugal Auto Garage $422,000 net of all applicable taxes and charges $476,860 including HST and all applicable charges $429,427 net of HST recoveries $434,660 net of all applicable taxes and charges $491,166 including HST and all applicable charges $442,310 net of HST recoveries $447,700 net of all applicable taxes and charges $505,901 including HST and all applicable charges $455,579 net of HST recoveries $461,131 net of all applicable taxes and charges $521,078 including HST and all applicable charges $469,247 net of HST recoveries $474,965 net of all applicable taxes and charges $536,710 including HST and all applicable charges $483,324 net of HST recoveries 2) Matmic Investments Inc., O/A Midas Auto Service Experts $304,450 net of all applicable taxes and charges $344,029 including HST and all applicable charges $309,808 net of HST recoveries $313,584 net of all applicable taxes and charges $354,349 including HST and all applicable charges $319,103 net of HST recoveries $322,991 net of all applicable taxes and charges $364,980 including HST and all applicable charges $328,676 net of HST recoveries Report to Bid Award Panel on contract award of RFQ No Page 2 of 9

3 $332,681 net of all applicable taxes and charges $375,929 including HST and all applicable charges $338,536 net of HST recoveries $342,661 net of all applicable taxes and charges $387,207 including HST and all applicable charges $348,692 net of HST recoveries 3) Ontario Ltd., O/A OK Tire Etobicoke $868,350 net of all applicable taxes and charges $981,236 including HST and all applicable charges $883,633 net of HST recoveries $894,401 net of all applicable taxes and charges $1,010,673 including HST and all applicable charges $910,142 net of HST recoveries $921,233 net of all applicable taxes and charges $1,040,993 including HST and all applicable charges $937,446 net of HST recoveries $948,869 net of all applicable taxes and charges $1,072,223 including HST and all applicable charges $965,570 net of HST recoveries $977,336 net of all applicable taxes and charges $1,104,389 including HST and all applicable charges $994,537 net of HST recoveries 4) North Keele Auto Repair Centre Ltd. $729,720 net of all applicable taxes and charges $824,584 including HST and all applicable charges $742,563 net of HST recoveries $751,612 net of all applicable taxes and charges $849,321 including HST and all applicable charges $764,840 net of HST recoveries Report to Bid Award Panel on contract award of RFQ No Page 3 of 9

4 $774,160 net of all applicable taxes and charges $874,801 including HST and all applicable charges $787,785 net of HST recoveries $797,385 net of all applicable taxes and charges $901,045 including HST and all applicable charges $811,419 net of HST recoveries $821,306 net of all applicable taxes and charges $928,076 including HST and all applicable charges $835,761 net of HST recoveries 5) Roy Foss Chevrolet Buick GMC (Woodbridge) $1,199,747 net of all applicable taxes and charges $1,355,714 including HST and all applicable charges $1,220,863 net of HST recoveries $1,235,739 net of all applicable taxes and charges $1,396,386 including HST and all applicable charges $1,257,488 net of HST recoveries $1,272,812 net of all applicable taxes and charges $1,438,277 including HST and all applicable charges $1,295,214 net of HST recoveries $1,310,996 net of all applicable taxes and charges $1,481,425 including HST and all applicable charges $1,334,070 net of HST recoveries $1,350,326 net of all applicable taxes and charges $1,525,868 including HST and all applicable charges $1,374,092 net of HST recoveries 6) Ishmail, Mohamed A, -O/A A & M Auto Collision & Service $246,400 net of all applicable taxes and charges $278,432 including HST and all applicable charges $250,737 net of HST recoveries Report to Bid Award Panel on contract award of RFQ No Page 4 of 9

5 $253,792 net of all applicable taxes and charges $286,785 including HST and all applicable charges $258,259 net of HST recoveries $261,406 net of all applicable taxes and charges $295,389 including HST and all applicable charges $266,007 net of HST recoveries $269,248 net of all applicable taxes and charges $304,250 including HST and all applicable charges $273,987 net of HST recoveries $277,325 net of all applicable taxes and charges $313,378 including HST and all applicable charges $282,206 net of HST recoveries 7) Ontario Inc., O/A BDS Fleet Service $519,570 net of all applicable taxes and charges $587,114 including HST and all applicable charges $528,714 net of HST recoveries $535,157 net of all applicable taxes and charges $604,728 including HST and all applicable charges $544,576 net of HST recoveries $551,212 net of all applicable taxes and charges $622,869 including HST and all applicable charges $560,913 net of HST recoveries $567,748 net of all applicable taxes and charges $641,555 including HST and all applicable charges $577,741 net of HST recoveries $584,781 net of all applicable taxes and charges $660,802 including HST and all applicable charges Report to Bid Award Panel on contract award of RFQ No Page 5 of 9

6 $595,073 net of HST recoveries 8) East Court Ford Lincoln Sales Ltd. $180,600 net of all applicable taxes and charges $204,078 including HST and all applicable charges $183,779 net of HST recoveries $186,018 net of all applicable taxes and charges $210,200 including HST and all applicable charges $189,292 net of HST recoveries $191,599 net of all applicable taxes and charges $216,506 including HST and all applicable charges $194,971 net of HST recoveries $197,346 net of all applicable taxes and charges $223,002 including HST and all applicable charges $200,820 net of HST recoveries $203,267 net of all applicable taxes and charges $229,692 including HST and all applicable charges $206,844 net of HST recoveries The total potential contract award identified in this report including all optional years is $23,736,281 net of all taxes, and $26,821,997 including all applicable taxes and charges. The cost to the City is $24,154,039 net of HST recoveries. FINANCIAL IMPACT The total potential contract award identified in this report including all optional years is $26,821,997 including all applicable taxes and charges. The total potential cost to the City is $24,154,039 net of HST recoveries. Funding in the amount of $3,175,572 net of HST recoveries is included in the 2017 Preliminary Operating Budget for Fleet Services Division. Additional funding will be included in the 2018 Operating Budget Submission for Fleet Services. The services on this contract will be purchased for Toronto Fleet Services Division and charged to Divisions requiring the services at which time the service value is charged to the appropriate Division's Approved Operating Budget. Funding in the amount of $510,886 net of HST recoveries is included in the 2017 Preliminary Operating Budget for Fire Services Division. Additional funding will be included in the 2018 Operating Budget Submission for Fire Services. Report to Bid Award Panel on contract award of RFQ No Page 6 of 9

7 Funding in the amount of $357,563 net of HST recoveries is included in the 2017 Preliminary Operating Budget for Toronto Paramedic Services Division. Additional funding will be included in the 2018 Operating Budget Submission for Toronto Paramedic Services. Should the City of Toronto choose to exercise its options to renew for an additional four (4) separate one (1) year periods, then appropriate additional funding, if needed, will be included in the annual Operating Budget Submissions for Fleet Services Division, Fire Services Division and Toronto Paramedic Services Division. Funding details are provided in the table below: Table 1: Financial Impact Summary of Recommended Contracts per Division (net of HST recoveries) Division/ Account- Cost Centre From Feb 13, 2017 to Dec 31, 2017 From Jan 1, 2018 to Feb 12, 2018 Option Year 1 From Feb 13, 2018 to Feb 12, 2019 Option Year 2 From Feb 13, 2019 to Feb 12, 2020 Option Year 3 From Feb 13, 2020 to Feb 12, 2021 Option Year 4 From Feb 13, 2021 to Feb 12, 2022 Total Toronto Fleet Services FL &4404 Toronto Fire Services FR Toronto Paramedic Services 2130/4404- B41100 $3,175,572 $396,947 $3,679,695 $3,790,085 $3,903,788 $4,020,902 $18,966,988 $510,886 $63,861 $591,989 $609,749 $628,041 $646,882 $3,051,408 $357,563 $44,695 $414,326 $426,756 $439,558 $452,745 $2,135,643 Grand Total Cost $24,154,039 CALL SUMMARY Call Issued: November 7, 2016 Call Closed: December 22, 2016 Number of Addenda Issued: 7 Number of Bids: 11 Report to Bid Award Panel on contract award of RFQ No Page 7 of 9

8 Table 2: Summary of Bids Received for RFQ including bid price Bidder Name John Vidal Enterprise Inc. O/A Portugal Auto Garage Ishmail, Mohamed A, O/A A & M Auto Collision & Service Matmic Investments Inc. O/A Midas Auto Service Experts Ontario Ltd. O/A OK Tire Etobicoke Bid Price (including H.S.T.) $506,353 $779,610 $863,659* $1,388,827 East Court Ford Lincoln Sales Ltd. $2,313, Ontario Inc. O/A BDS Fleet Service $2,559,980 North Keele Auto Repair Centre Ltd. $4,443,007* Roy Foss Chevrolet Buick GMC (Woodbridge) Norseman Truck & Trailer Services Ltd Canada Inc. O/A Extreme Garage Transmission Depot Inc. $6,486,562* Non-Compliant** Non-Compliant** Non-Compliant** * Tender prices were corrected for mathematical errors. Purchasing and Materials Management has verified that the mathematical errors were corrected. ** Bidder was found non-compliant with mandatory requirements. DIVISION CONTACTS Vukadin Lalovic, Manager, Fleet Assets, , vukadin.lalovic@toronto.ca Elena Caruso, Manager, Goods and Services, Purchasing & Materials Management Division, , elena.caruso@toronto.ca COMMENTS The award of the RFQ is structured to allow Fleet Services to award one (1) primary and one (1) secondary contract per district for four (4) districts. Toronto Fire Services is awarding one (1) contract per district for four (4) districts. Toronto Paramedic Services is awarding one (1) contract with the lowest total bid price. Report to Bid Award Panel on contract award of RFQ No Page 8 of 9

9 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: 1. for a contract funded by the operating budget, 5 years or less including any option years; or 2. 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 Award Panel; 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. SIGNATURE Michael Pacholok Director, Purchasing and Materials Management Report to Bid Award Panel on contract award of RFQ No Page 9 of 9

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