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CITY OF VANCOUVER ADMINISTRATIVE REPORT
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Date: |
June 29, 2004 | |
Author: |
Larry Berglund/
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Phone No.: |
873-7254/873-7117 | |
RTS No.: |
04395 | |
CC File No.: |
1805 | |
Meeting Date: |
July 20th, 2004 |
TO: |
Vancouver City Council |
FROM: |
Director of Facility Design and Management in consultation with Manager of Materials Management |
SUBJECT: |
Award of Contract PS04019 - Maintenance and Repair of Elevating Devices |
RECOMMENDATION
A. THAT, subject to the conditions set out in Recommendations B, C, D, and E Council approve that an agreement be entered into with Kone Inc. Canada to provide Maintenance and Repair services for the City's Elevating Devices for a period of five (5) years, with subsequent renewal options for two (2) twelve (12) month extensions at an estimated cost of $155,620.56 annually plus applicable taxes subject to a contract satisfactory to the Director of Legal Services, Director of Facility Design and Management and the Manager of Materials Management.
B. THAT, if Council approves recommendation A, and subject to the conditions set out in Recommendation C, D, and E, Kone Inc. Canada be awarded a contract for a five (5) year term.
C. THAT, all legal documentation is to be in a form which is satisfactory to the Director of Legal Services, the Director of Facility Design and Management and the Manager of Materials Management.
D. THAT, upon approval of the legal documentation by the Director of Legal Services, the Director of Facility Design and Management, and the Manager of Materials Management be authorized to execute and deliver the necessary agreement on behalf of City Council.
E. THAT, no legal rights or obligations shall arise hereby and none shall arise or be granted hereafter unless and until all contemplated legal documentation has been executed and delivered by all parties.
COUNCIL POLICY
The policy of Council is to award contract for the purchase of equipment, supplies and services that will give the highest value based on quality, service and price.
Contracts with a value over $300,000 are referred to Council for approval.
PURPOSE
The purpose of this report is to recommend that Council authorize a five-year contract with the option to extend for two 12-month periods to KONE Inc. Canada for the maintenance and repair services of the City's elevating devices. This recommendation is based on responses to a public process through Request for Proposal PS04019.
DISCUS SION
This request for Proposal identified a business opportunity for the successful Proponent to supply preventative maintenance and repair service for all the City's elevators located in selected buildings throughout the City of Vancouver. Service includes routine preventative maintenance, periodic testing, cleaning, adjustments call backs, repairs, replacements and material required for the work. The Request for Proposal did not include alterations or modernizations.
Included in the Request for Proposal were all elevating devices including those currently on contract, on warranty, under consideration or modernization that will require routine maintenance contracts once the current agreements on file expire. The elevating devices at the following locations will be serviced by Kone Inc. at the expiry of their current service agreement:
Carnegie Centre, Four Corners Bank Building, Gathering Place, Granville Hotel, Library Square, New Continental, Police Support Building and Queen Elizabeth Theatre.
On May 10th, 2004 the City released a Request for Proposal (PS04019) for Maintenance and Repair of Elevating Devices. This Request for Proposal was advertised on the City's and BC Purchasing Commissions' web site, an advertisement was placed in the Vancouver Sun and the City notified incumbent suppliers and other well known vendors.
The RFP identified the City's requirements, a Proponents Information Meeting was held, and a two-day site tour was organized to view the City's elevating devices.
Four Proposals were received by the City Clerk's office. All four Proposals were found to be compliant and accepted for evaluation.
The City's objective for the RFP's supply and service requirements include:
· quality service at maximum value;
· timely response at lowest cost to the City;
· consistent and best pricing for service;
· a strong co-operative and proactive relationship with the vendor;
· financial offering - pricing was determined by consideration of the Proponents offering against all other proponents for similar service requirements.
Evaluation criteria were as follows:
A. The Maintenance Contractor is required to have the following full time personnel on staff and located in Vancouver to support the contract for the full term of the contract.
(a) Qualified Field Adjuster(s).
(b) Maintenance Supervisor(s).
(c) Service & Repair Supervisor(s).
(d) Assigned Service & Repair Crew(s) and/or Technicians.
B. The Maintenance Contractor is required to have the following full time personnel on staff or on contract (not necessarily located in Vancouver) to provide technical support to local personnel with respect to duties required under this scope of work for the full term of the contract.
(a) Professional Engineer(s) Registered in the Province of British Columbia.
(b) Certified Field Engineer(s)
C. The Maintenance Contractor is required to have a local warehouse that stocks common components cleaning supplies, tools, materials and other items required for performance of the work. The Maintenance Contractor is to have a 24-hour answering service, dispatching network, technicians' on-call and a trouble call tracking system that includes follow-up reports.
D. The Maintenance Contractor's qualifications, ability, experience, business technology, value added services, warranty and price were also included in the evaluation process.
The RFP evaluation process was facilitated by the Materials Management Branch of Corporate Services. The evaluation team was comprised of representatives from Building Services and an independent elevating device consultant.
Proposals were evaluated by team members individually; a composite score was assigned to each proposal based on weighted criteria. Pricing was then combined with the team composite score to provide an overall rating.
Kone Inc. Canada scored the highest at 90.83 out of a total possible 100 points.
Evaluative Score
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Kone Inc. |
Proponent #2 |
Proponent #3 |
Proponent #4 |
70 |
65.63 |
47.00 |
37.00 |
34.75 |
30 |
25.20 |
22.33 |
27.98 |
30.00 |
Total RFP Score |
90.83 |
69.33 |
64.98 |
64.75 |
The recommendation that the City authorize a contract with Kone Inc. Canada for the Maintenance and Repair of the City's Elevating Devices is based on the following strengths of their Proposal:
· Kone Inc. is the fourth largest elevator and escalator company in the world.
· Kone's reputation in Canada identifies them as versatile, reliable and a market leader which has been further confirmed with reference checks from Vancouver General Hospital, British Columbia Institute of Technology, and Simon Fraser University.
· Kone clearly identified the equipment in the portfolio with a plan to address the needs of the City.
· Kone offered a series of meetings for budget reviews for future capital planning if required or requested.
· Kone offered tangible benefits such as door detectors at no extra charge as part of the extra value added services.
· Kone have a Local P.Eng on staff familiar with and capable of providing troubleshooting support. No other company that submitted a proposal has this service locally.
· Kone have a national call centre for professional dispatching of technicians, back-up systems and excellent shut down record reports.
· Kone have a dedicated and experienced staff to service the City's needs; and they achieved the highest overall RFP score.
The PST, the 7% GST (less any municipal rebate received) and any Provincial Environmental Levy are in addition to the pricing shown in this report.
FINANCIAL IMPLICATIONS
Funding will be provided from the respective department's annual operating budgets. On the basis of expenditures in 2001, 2002 and 2003, for similar services estimated at $230,000.00 per annum, it is estimated that the contract with Kone Inc. Canada will provide an annual saving of $75,000.
An agreement with Kone Inc. Canada is within the allowable budget.
CONCLUSION
The recommendation to authorize a contract with Kone Inc. Canada is deemed to provide best value for the City over the five (5) year term of the contract. Based on the proposals submitted, Kone Inc. Canada is the leading proponent demonstrating their ability to effectively provide support and Service requirements to the City.
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