Award of Doc 2195157928 to Cardinal Health for the Supply and Delivery of Incontinence Products for The City of Toronto's Senior Services and Long-Term Care

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The decision

2020-03-11 · Bid Award Panel · adopted

As filed

The Bid Award Panel adopted the following: 1. Bid Award Panel grant authority to award the contract in accordance with the Contract Details set out in the report (March 5, 2020) from the Chief Purchasing Officer: Solicitation Number: DOC Number 2195157928 Description: For the Request for Quotation 0505-19-0279 the non-exclusive supply and delivery of Incontinence Products for various Senior Services and Long-Term Care locations from the date of award to April 30, 2021, with the option to renew the Contract for four (4) additional separate one (1) year periods at the sole discretion of the City and subject to budget approval(s).

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Prior to the renewal of the contract, Purchasing and Materials Management will perform a market analysis to verify the current market conditions as compared to the proposed increase by the vendor and that the Seniors Services and Long-Term Care will monitor vendor performance during the first term of the contract. Should the option(s) be exercised, the Director of Management Services, Seniors Services and Long-Term Care will request the Chief Purchasing Officer of Purchasing and Materials Management to process the renewals under the same terms and conditions. Recommended Supplier: Cardinal Health Canada Inc. Contract Award Value: $1,379,997 net of all applicable taxes and charges (including 5 percent miscellaneous items) $1,559,397 including HST and all applicable charges $1,404,285 net of HST recoveries Contract is expected to start on May 1, 2020 and end on April 30, 2021 Option Year 1 (May 1st, 2021 to April 30th, 2022) $1,421,397 net of all applicable taxes and charges (including 5 percent of miscellaneous items) $1,606,179 including HST and all applicable charges $1,446,414 net of HST recoveries Option Year 2 (May 1, 2022 to April 30, 2023) $1,464,039 net of all applicable taxes and charges (including 5 percent of miscellaneous items) $1,654,364 including HST and all applicable charges $1,489,806 net of HST recoveries Option Year 3 (May 1, 2023 to April 30, 2024) $1,507,960 net of all applicable taxes and charges (including 5 percent of miscellaneous items) $1,703,995 including HST and all applicable charges $1,534,500 net of HST recoveries Option Year 4 (May 1, 2024 to April 30, 2025) $1,553,199 net of all applicable taxes and charges (including 5 percent of miscellaneous items) $1,755,115 including HST and all applicable charges $1,580,535 net of HST recoveries The total potential cost to the City including all option years is $7,455,540 net of HST recoveries, $8,279,049 including all applicable taxes and charges and $7,326,592 net of all applicable taxes and charges. The above cost calculations for the Option Years reflect an estimated annual 3 percent increase as per the Consumer Price Index.

On the agenda

As the city filed it

Solicitation Issued: January 15, 2020 Solicitation Closed: February 18, 2020 Number of Addenda Issued: (1) Number of Bids: 2 Table 2 - Summary of Bids Received Supplier Name Bid Price (including H.S.T.) Cardinal Health Canada Inc. $1,351,477.21 (incl. Volume Rebate 9 percent) Medical Mart $1,379,975.44 (incl. Volume Rebate 6 percent + 2 percent Prompt Payment)

Staff recommended

The Chief Purchasing Officer recommends that the Bid Award Panel grant authority to award the following contract: Solicitation Number: DOC Number 2195157928 Description: For the Request for Quotation #0505-19-0279 the non-exclusive supply and delivery of Incontinence Products for various Senior Services and Long-Term Care locations from the date of award to April 30, 2021, with the option to renew the Contract for four (4) additional separate one (1) year periods at the sole discretion of the City and subject to budget approval(s).

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Prior to the renewal of the contract, PMMD will perform a market analysis to verify the current market conditions as compared to the proposed increase by the vendor and that the Seniors Services and Long-Term Care will monitor vendor performance during the first term of the contract. Should the option(s) be exercised, the Director of Management Services, Seniors Services and Long-Term Care will request the Chief Purchasing Officer of Purchasing and Materials Management to process the renewals under the same terms and conditions. Recommended Supplier: Cardinal Health Canada Inc. Contract Award Value: $1,379,997 net of all applicable taxes and charges (including 5 percent miscellaneous items) $1,559,397 including HST and all applicable charges $1,404,285 net of HST recoveries Contract is expected to start on May 1, 2020 and end on April 30, 2021 Option Year 1 (May 1st, 2021 to April 30th, 2022) $1,421,397 net of all applicable taxes and charges (including 5 percent of miscellaneous items) $1,606,179 including HST and all applicable charges $1,446,414 net of HST recoveries Option Year 2 (May 1, 2022 to April 30, 2023) $1,464,039 net of all applicable taxes and charges (including 5 percent of miscellaneous items) $1,654,364 including HST and all applicable charges $1,489,806 net of HST recoveries Option Year 3 (May 1, 2023 to April 30, 2024) $1,507,960 net of all applicable taxes and charges (including 5 percent of miscellaneous items) $1,703,995 including HST and all applicable charges $1,534,500 net of HST recoveries Option Year 4 (May 1, 2024 to April 30, 2025) $1,553,199 net of all applicable taxes and charges (including 5 percent of miscellaneous items) $1,755,115 including HST and all applicable charges $1,580,535 net of HST recoveries The total potential cost to the City including all option years is $7,455,540 net of HST recoveries, $8,279,049 including all applicable taxes and charges and $7,326,592 net of all applicable taxes and charges. The above cost calculations for the Option Years reflect an estimated annual 3 percent increase as per the Consumer Price Index (CPI).

On the record

The item as the City filed it