Procurement Authorization - SRT Linear Induction Motor Contract

Meeting Date: March 21, 2001

Subject: Procurement Authorization - Srt Linear Induction Motor Contract

Recommendation

It is recommended that the Commission authorize the award of a two-year contract to Sherwood Electromotion for scheduled preventive maintenance of SRT Linear Induction Motors in the total upset limit amount of $600,000.00.

Funding

Sufficient funds for 2001 expenditures are included in the 2001 Operating Budget and funds will be provided in future budgets as appropriate.

Background

Linear Induction Motors (LIM’s) provide the traction force for the I.C.T.S. cars of the Scarborough Rapid Transit System. The motor is situated under the car and operates with a clearance of less than .5 inches between its surface and that of the reaction rail. The LIM’s periodically experience mechanical damage due to debris being caught between the two surfaces, improper reaction rail height, or improper alignment of the LIM. Although frequent checks of the reaction rail alignment are regularly conducted, periodic damage continues to occur. Regular preventive maintenance of up to 25 LIM’s over the two-year period is also included in this contract.

Discussion

The only two (2) companies known to be qualified to perform this work were invited to submit tenders in addition to the public advertisement in the Globe and Mail on December 22, 2000, out of which two (2) companies submitted tenders as detailed on the attached Appendix ‘A’. The tenderers were requested to submit pricing based on a combination of scheduled preventive maintenance and miscellaneous unscheduled repairs.

The low tender was submitted by Sherwood Electromotion. Their submission did not state any exceptions/qualifications and is considered commercially and technically compliant. Sherwood Electromotion has satisfactorily performed the work for the Commission in the past and are considered qualified to perform the work under this contract. The overall price for this work has increased by approximately 39% over the existing contract which was awarded two years ago. This is primarily due to an increase in labour rates as the contractor indicated the current labour rates were understated. Sherwood’s labour rate was compared to the other tenderers and is competitive.

Prior to tendering the next contract for this requirement, staff will canvass the industry to identify additional qualified companies interested in submitting a tender for this requirement.