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Form Revised: September 1999
TORONTO
TRANSIT COMMISSION
REPORT NO.
MEETING DATE: JULY 14, 2004
SUBJECT: PURCHASE OF
ELECTRIC JOBBER PARTS
RECOMMENDATION
It is recommended that the
Commission authorize the award of three-year inventory supply contracts for the
supply of various electric jobber parts to the following companies for the
period from September 2004 to September 2007:
-
Powertrade Electric Limited for $1,125,000 including
applicable taxes.
-
Wesco Distribution Canada Incorporated for $1,000,000
including applicable taxes.
-
Argo International for $585,000 including applicable
taxes.
-
Harwell Electric Supply Company Limited for $565,000
including applicable taxes.
-
Guillevin International Company for $140,000 including
applicable taxes.
-
CEA Telecom for $110,000 including applicable taxes.
-
Westburne Ruddy Electric for $100,000 including
applicable taxes.
-
Electro Sonic Incorporated for $85,000 including
applicable taxes.
-
Baumer Electric Incorporated for $75,000 including
applicable taxes.
FUNDING
Sufficient funds have been
included in the 2004 TTC Operating Budget and will be included in future
Operating Budgets as appropriate. These inventory materials will be charged to
the appropriate budget at the time of issuance from Stores.
BACKGROUND
The subject electric jobber parts are
used for varying electrical maintenance needs throughout the Commission
including vehicle and building maintenance. Several examples include
contactors, motor starting switches, tie wraps, terminals, fuses, splices and
breakers.
DISCUSSION
Tenders were invited from
twenty-six known companies coupled with an advertisement on the TTC internet
website on May 14, 2004. Fifteen companies submitted proposals as summarized in
Appendix ‘A’. None of the recommended
companies stated any exceptions or qualifications and their tenders are
considered acceptable.
The tender called for 793
pre-approved part types. Tenderers were also advised that alternatives would
not be considered during the evaluation. A total of 748 part types are being recommended
for award. The 45 part types that are not being recommended were not priced.
Staff will investigate these parts and they may subsequently be
the subject of a future tender.
Powertrade Electric Limited
submitted prices on 587 part types and has the lowest price on 326 part types.
They are recommended to be awarded 326 parts at the upset limit price of
$1,125,000.
Wesco Distribution Canada
Incorporated submitted prices on 397 part types and has the lowest price on 180
part types of which they were tied for the lowest price with Harwell Electric
Supply Company Limited on 1 part type and with Guillevin International Company
on 1 part type. However as Wesco Distribution Canada Incorporated did not offer
the lowest lead time, staff recommend the award of these 2 part types to be
made to Harwell Electric Supply Company Limited
and Guillevin International Company accordingly. Hence, Wesco
Distribution Canada Incorporated are recommended to be awarded 178 part types
for an upset limit price of $1,000,000.
Argo International submitted
prices on 69 part types and has the lowest price on 2 part types. They are
recommended to be awarded an upset limit price of $585,000.
Harwell Electric Supply Company
Limited submitted prices on 648 part types and has the lowest price on 133 part
types of which they were tied for the lowest price with Guillevin International
Company on 2 part types and with Wesco Distribution Canada Incorporated on 3
part types. However as Harwell Electric Supply Company did not offer the lowest
lead time, staff recommend the award of these 5 part types to Guillevin
International Company and Wesco Distribution Canada Incorporated accordingly. Also within the 133 parts types,
Harwell Electric Supply Company
Limited was tied with CEA Telecom on 1 part type on both price and lead time.
Since CEA Telecom has a better vendor performance rating, staff recommend the
award of this 1 part type to CEA Telecom. Hence, Harwell Electric Supply
Company Limited is recommended to be awarded 127 part types for an upset limit
price of $565,000.
Guillevin International Company
submitted prices on 375 part types and has the lowest price on 12 part types of
which they were tied for the lowest price with Wesco Distribution Canada
Incorporated on 1 part type. However as Guillevin International Company did not
offer the lowest lead time staff recommend the award of this 1 part type to
Wesco Distribution Canada Incorporated. Hence, Guillevin International Company
are recommended to be awarded 11 part types for an upset limit price of
$140,000.
CEA Telecom submitted prices on
100 part types and has the lowest price on 8 part types. They are recommended
to be awarded an upset limit price of $110,000.
Westburne Ruddy Electric
submitted prices on 391 part types and has the lowest price on 38 part types.
Their submission also included pricing on an additional 42 part types which
were alternatives and were not considered further. They are recommended to be
awarded the 38 part types for an upset limit price of $100,000.
Electro Sonic Incorporated
submitted prices on 123 part types and has the lowest price on 57 part types.
They are recommended to be awarded an upset limit price of $85,000.
Baumer Electric Incorporated
submitted prices on 1 part type and has the lowest price on that 1 part type.
They are recommended to be awarded an upset limit price of $75,000.
O’Neil Electric Supply Limited
submitted pricing on 150 part types and had the lowest price on 15 part types
of which they were tied for the lowest price with Wesco Distribution Canada
Incorporated on 10 part types. However as O’Neil Electric Supply Limited did
not offer the lowest lead time staff recommend the award of these 10 part types
to Wesco Distribution Canada Incorporated. The remaining 5 of the 15 part types
has a total three year value of approximately $2,000. Staff compared their
pricing to the next lowest price for each part type and revealed a premium of
approximately $50. Therefore, staff is not recommending awarding these 5 part
types to O’Neil Electric Supply Limited on the basis that the cost of issuing a
purchase order coupled with the administration costs of the contract over the
three year term would exceed the noted $50 premium. On this basis, staff
recommend awarding to the next lowest tenderer which will be 2 part types to
Wesco Distribution Canada Incorporated, 1 part type to Westburne Ruddy Electric
and 2 part types to Harwell Electric Supply Company Limited.
The remaining companies’
submissions are elaborated further in Appendix ‘A’.
Each recommended upset limit
includes approximately 20% contingency for variances between forecasted and
actual usage and new parts yet to be identified which may be added to the
contracts during the contract term.
The pricing for the new
three-year inventory supply contracts are approximately 10% lower in the first
year of the contract. The pricing will be approximately 3% higher in year two
based on year one pricing and approximately 3% higher in year three based on
year two pricing.
JUSTIFICATION
These electric jobber parts are
required in order to support varying electrical
maintenance needs throughout the Commission.
- - - - - - - - - - - -
June 30, 2004
9-118-55
Attachment – Appendix ‘A’
PURCHASE OF ELECTRIC JOBBER PARTS
|
TENDERER |
NO. OF ITEMS PRICED |
AMOUNT TENDERED |
NO. OF ITEMS RECOMMENDED |
RECOMMENDED UPSET LIMIT AMOUNT |
|
Powertrade Electric Limited |
587 |
$2,156,145.52 |
326 |
$1,125,000.00 |
|
Wesco Distribution Canada
Incorporated |
397 |
$1,724,935.91 |
178 |
$1,000,000.00 |
|
Argo International |
69 |
$880,509.41 |
2 |
$585,000.00 |
|
Harwell Electric Supply Company
Limited |
648 |
$4,600,170.76 |
127 |
$565,000.00 |
|
Guillevin International Company |
375 |
$1,981,049.82 |
11 |
$140,000.00 |
|
CEA Telecom |
100 |
$585,647.25 |
8 |
$110,000.00 |
|
Westburne Ruddy Electric |
391 |
$1,636,737.87 |
38 |
$100,000.00 |
|
Electro Sonic Incorporated |
123 |
$420,633.40 |
57 |
$85,000.00 |
|
Baumer Electric Incorporated |
1 |
$63,471.38 |
1 |
$75,000.00 |
|
O’Neil Electric Supply Limited |
150 |
$1,025,783.27 |
-- |
-- |
|
Jera Enterprises * |
400 |
$1,709,268.56 |
-- |
-- |
|
Franklin Empire Incorporated * |
218 |
$4,369,004.08 |
-- |
-- |
|
Distribution Laurent Leblanc
Incorporated * |
204 |
$58,307,706.20 |
-- |
-- |
|
Electric Depot * |
500 |
$2,932,390.79 |
-- |
-- |
|
Robertson Electric Wholesale
Limited * |
218 |
$1,292,484.97 |
-- |
-- |
*
NON-COMPLIANT TENDERS:
Jera
Enterprises submitted an incomplete tender form.
Franklin Empire
Incorporated did not submit required lead times.
Distribution
Laurent Leblanc Incorporated submitted ambiguous pricing and their tender could
not be evaluated.
Electric Deport
did not submit required lead times.
Robertson
Electric Wholesale Limited did not submit required lead times.