Award
At its meeting of June 3, 2024 Council of the Corporation of the Town of Petawawa awarded Tender PW-07-2024 as follows:
Resolution #10 Council Meeting June 3, 2024
Moved by: Adam Driscoll
Seconded by: Murray Rutz
That Council approves the award of Tender PW-07-2024, One (1) Articulated Four Wheel Drive Front End Loader, to JR Brisson Equipment in the amount of $269,474.00 plus HST.
Carried
Staff Report
Report # PW-19-2024 - Chris Mantha, Director of Public Works
Agenda date: June 3, 2024
Recommendation:
That Council approves the award of Tender PW-07-2024, One (1) Articulated Four Wheel Drive Front End Loader, to JR Brisson Equipment in the amount of $269,474.00 plus HST.
Background:
The tender was prepared and advertised in a local paper and on our website. Eight (8) firms requested tender packages and four (4) firms submitted complete tender packages on the closing date of May 7, 2024 at 10:00 a.m. A total of seven (7) bids were received. Of the seven (7) bids, three (3) did not meet the tender specifications and were not considered; the bids are marked ** below. The tender package also contained a provision for an optional trade-in offer on the Town’s 2001 John Deere 544H Front End Loader.
Contractor and Tender Price (excluding HST):
**Bob Mark Equipment Bid #1** - $262,920.73
**Bob Mark Equipment Bid #2** - $278,231.35
Bob Mark Equipment Bid #3 - $304,027.08
Brandt - $329,970.00
JR Brisson Equipment - $269,474.00
**Wajax Bid #1** - $270,000.00
Wajax Bid #2 - $264,275.00
Discussion:
The tender package contains the following provisions:
*Notwithstanding any other provision in this Contract, the Town shall have the right to:
a. Accept any Tender;
b. Reject any Tender; and
c. Reject all Tenders.
*Without limiting the generality of the above-noted clause, the Town shall have the right to:
a. Accept an irregular Tender;
b. Accept a Tender which is not the lowest Tender; and
c. Reject a Tender even if it is the only Tender received by the Town.
Staff compared the two lowest bids (Wajax Bid #2 and JR Brisson Equipment) and is recommending the bid from JR Brisson Equipment for the purchase of a Case 621 G in the amount of $269,474.00 plus HST.
Public Works has a Case Backhoe that was purchased in 2023; staff is satisfied with both the performance of the machine and the customer service provided. Having both pieces of equipment (backhoe and loader) of the same brand will allow Public Works to cut down on service calls and warranty work charges by means of having one service representative on site to work on both pieces of equipment.
Safety is a high priority within the Public Works Department and visibility while operating machinery is something we continue to try to improve for our operators and for the public. Case offers the greatest visibility, via their one-piece rounded windshield. This windshield allows for greater visibility for all sides of the machine. An optimally placed rear-view camera allows for improved operator awareness and confidence.
Performance is also a consideration. When comparing the Case model to the Hitachi model: Case has a higher straight tipping load; Case has a higher tipping load at 40 degrees; and Case has a substantially higher bucket breakout.
A purchase of this considerable value demands proper longevity from the product, which was proven through the Town’s first Case purchase of a backhoe in 1993. This backhoe was in service and relied on regularly for 27 years until 2021, when the Town received a $25,000.00 trade-in value while purchasing a new backhoe.
Financial Implication:
As part of the 2024 budget process the existing 2001 John Deere 544H Front End Loader was deemed surplus, and the provision for the purchase of a new loader was included in the budget in the amount of $250,000.00, with $200,000.00 to be funded through taxation and $50,000.00 to be funded through revenue received from the sale of the loader.
As part of the tender package, bidders had the option to provide an offer to purchase the Town’s 2001 John Deere 544H Front End Loader. At the time of tender preparation, staff had missed that the Pembroke and Area Airport Commission was to be provided the first-right-of-refusal to purchase of the loader. Report PW-17-2024 was struck from the May 27, 2024 Council-In-Committee meeting agenda to account for this oversight. The tender document specified the following with regard to the “Optional Trade-In Offer”:
• The Tenderer may also provide a trade-in value for the existing 2001 John Deere 544H Front End Loader.
• The pricing for the purchase of the 2001 John Deere 544H Front End Loader will be considered separately and will not impact the evaluation of the main bid. Harmonized Sales Tax (HST) shall be extra to the bid price.
• The Town reserves the right, in its sole and unfettered discretion, to accept the offer which provides the Town with the highest revenue value and level of complete disposal providing that the pricing is considered by the Town to be appropriate.
• The Town reserves the right, in its sole and unfettered discretion, not to award the purchase of the 2001 John Deere 544H Front End Loader if it is deemed not to be in its best interest.
The Town expects to recapture the trade in value of the used loader from the sale to the Pembroke and Area Airport Commission, which will be completed at a later date.