City of Kingston Report to Council Report Number 17-225 To: From: Resource Staff: Mayor and Members of Council Jim Keech, President & CEO, Utilities Kingston Sheila Kidd, Director of Transportation Services Date of Meeting: Subject: Award of Contract Hydro Excavator Truck Executive Summary: The Fleet Services Division issued a Request for Proposals (RFP) on behalf of the Utilities Underground Division, for the purchase of one hydro excavator truck. This unit is to replace an existing unit that has fulfilled lifecycle expectations. Council approval is required because only two submissions to the RFP were received and staff is not recommending the lowest bid, therefore staff does not have delegated authority to proceed with the purchase. Recommendation: That FST Canada Incorporated, operated as Joe Johnson Equipment, be awarded the contract for the purchase of one hydro excavator truck, (F31-TIS-TS-FL-2017-7), for the total purchase price of $550,244 plus applicable taxes; and That Council authorize the Mayor and Clerk to execute the required agreements, in a form satisfactory to the Director of Legal Services. Council Meeting 19 5
Page 2 of 5 Authorizing Signatures: Jim Keech, President & CEO, Utilities Kingston Gerard Hunt, Chief Administrative Officer Consultation with the following Members of the Corporate Management Team: Lanie Hurdle, Community Services Desiree Kennedy, Chief Financial Officer & City Treasurer Denis Leger, Corporate & Emergency Services Council Meeting 19 6
Options/Discussion: Page 3 of 5 The Fleet Services Division issued a Request for Proposals (RFP) on behalf of the Utilities Underground Division for the purchase of one hydro excavator truck. This unit is to replace an existing unit that has fulfilled lifecycle expectations. A hydro excavator is a very specialized and complex piece of equipment that is widely used by municipalities and utility companies to safely locate and unearth underground utility lines, cables, and pipes. Hydro excavation is a process that utilizes pressurized water or air to break up the soil and vacuum it into a large 1200 gallon debris tank on the truck for later disposal or backfilling the hole that has been made. In cold weather and permafrost, heated water is used making hydro excavation a valuable tool for year-round excavation. More than 40% of pipeline leaks and ruptures are caused by damage from outside force and more than half of all cable outages are caused by excavation damage. As opposed to conventional shovel digger machines, hydro excavation provides a non-destructive means of safely locating underground utilities and excavating an area safely with precision while avoiding damage to infrastructure. An underground utility strike can be catastrophic, affecting thousands of people and costing millions of dollars. The submissions were evaluated using the following criteria: Pricing and Related Costs - 45% Specification Compliant - 42% Warranty - 10% Accessibility Standards for Customer Service, Ontario Regulation 429/7-3% Two submissions were received. This type of unit is not produced by many manufacturers in Canada so a limited response to the RFP is not unusual. The staff evaluation resulted in the following ranking: FST Canada Incorporated operated as Joe Johnson Equipment Ranked #1 with a score of 94 out of 100. C.M. Equipment Ontario Incorporated Ranked #2 with a score of 89 out of 100. The unit offered by FST Canada Incorporated is a 2018 Freightliner truck with a Vactor hydro excavator body, for the purchase price of $550,244. The unit offered by C.M. Equipment Ontario Incorporated is a 2018 Freightliner truck with a Vac-Con hydro excavator body for $520,007. Council Meeting 19 7
Page 4 of 5 The FST Canada Incorporated submission is recommended as it attained the highest overall score. Although the C.M. Equipment Ontario Incorporated unit is less money, they are unable to meet the specifications outlined within the RFP document in the following areas: The excavator functions were to be all hydraulically driven as opposed to mechanically, which is much less subjective to component wear. The C.M. Equipment unit relies on the mechanical function of the drivetrain to propel the main vacuum pump. This method is more maintenance intensive as well as being excessively noisy. This was of concern in residential areas. The specifications required a minimal amount of heated cabinetry and lateral hose storage to carry the necessary equipment required by the Utilities Underground Division. The C.M. Equipment excavator body is designed to incorporate their mechanical apparatus, so cabinetry had to be downsized and mounted in a higher more awkward position to the operator s reach. Minimizing downtime where possible is critical on a high-volume unit such as this. The RFP specifications requested on-board self-diagnostics to alert the operators of an imminent failure and to further assist the mechanical staff to the location of a component problem should one occur. The C.M. Equipment unit was unable to comply. The RFP specifications requested a quotation for a high-voltage proximity warning system that consists of a sensor mounted on the suction boom that transmits via lights and alarms to warn the operator when the boom is in close proximity to high-voltage lines. A quotation from C.M. Equipment was not received. Existing Policy/By-law: By-law 2000-134, a By-law to Establish Purchasing Policies and Procedures for the City of Kingston Green Fleet Policy for the City of Kingston - There are currently no published emission figures available for commercial vehicles because there are too many variables in load and application. Notice Provisions: Accessibility Considerations: Financial Considerations: This purchase will be funded from monies approved in the 2017 Fleet capital budget. Council Meeting 19 8
Page 5 of 5 Contacts: Sheila Kidd, Director of Transportation Services, 613-546-4291, Extension 2221 Robert (Bud) Steele, Manager of Fleet, 613-546-4291, Extension 2216 Other City of Kingston Staff Consulted: Joe Lewis, Manager, Underground, Water and Waste Water Operations Chris Leeman, Supervisor, Underground, Water and Waste Water Operations Fleet Services, Mechanical Staff Exhibits Attached: Council Meeting 19 9