Award of Ariba Document Number 3528658110 to Various Suppliers for the Supply, Delivery and Unloading of Bulk, Crushed, Coarse, Common Rock Salt as and when Required for Four (4) Districts for Various City of Toronto Divisions

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The decision

2022-10-04 · Bid Award Panel · adopted

As filed

The Bid Award Panel adopted the following: 1. The Bid Award Panel, pursuant to Section 195-8.3A(3) of the Municipal Code, Chapter 195, Purchasing, exercise the power of a Standing Committee to grant authority to award the following contract in accordance with the Contract Details set out in the report (September 21, 2022) from the Acting Chief Procurement Officer: Solicitation Number: Request for Quotation, Ariba Document

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Number 3528658110, Contract Number 22TR-OM-003-AA-WE Description: Supply, Delivery and Unloading of Bulk, Crushed, Coarse, Common Rock Salt as and when required for a Three (3) Year Term Commencing 2022 - 2023 Winter Season for Etobicoke York, North York, Scarborough and Toronto and East York districts for the various City of Toronto divisions and other Agencies, Boards and Commissions, with an option in favour of the City to extend the agreement on the same terms and conditions for an additional term of up to two (2) additional separate one (1) year periods. Should the option(s) be exercised, then the General Manager of Transportation Services Division will request the Acting Chief Procurement Officer to process the renewals under the same terms and conditions. Total Contract Award Value (October 15, 2022 - April 15, 2025) (Sections A, B, C, D see breakdown below per recommended supplier): $108,996,803 net of all applicable taxes and charges $123,166,387 including HST and all applicable charges $110,915,147 net of HST recoveries Recommended Supplier: Section A - Etobicoke York District - Compass Minerals Canada Corp Contract Award value (October 15, 2022 - April 15, 2025): $14,188,455 net of all applicable taxes and charges $16,032,954 including HST and all applicable charges $14,438,172 net of HST recoveries Contract is expected to start on October 15, 2022 and end on April 15, 2025. Option Year 1 - October 15, 2025 to April 15, 2026 $5,009,994 net of all applicable taxes and charges $5,661,293 including all applicable taxes and charges $5,098,170 net of HST recoveries Option Year 2 - October 15, 2026 to April 15, 2027 $5,157,446 net of all applicable taxes and charges $5,827,914 including all applicable taxes and charges $5,248,217 net of HST recoveries Grand Total Contract Award value (October 15, 2022 - April 15, 2027): $24,355,895 net of all applicable taxes and charges $27,522,161 including HST and all applicable charges $24,784,559 net of HST recoveries Recommended Supplier: Section B - North York District - Windsor Salt Ltd. Contract Award Value (October 15, 2022 - April 15, 2025): $17,558,209 net of all applicable taxes and charges $19,840,776 including HST and all applicable charges $17,867,233 net of HST recoveries Contract is expected to start on October 15, 2022 and end on April 15, 2025. Option Year 1 - October 15, 2025 to April 15, 2026 $6,362,461 net of all applicable taxes and charges $7,189,580 including all applicable taxes and charges $6,474,440 net of HST recoveries Option Year 2 - October 15, 2026 to April 15, 2027 $6,551,234 net of all applicable taxes and charges $7,402,894 including all applicable taxes and charges $6,666,535 net of HST recoveries Grand Total Contract Award value (October 15, 2022 - April 15, 2027): $30,471,903 net of all applicable taxes and charges $34,433,250 including HST and all applicable charges $31,008,208 net of HST recoveries Recommended supplier: Section C - Scarborough District - Cargill Salt, Road Safety, a Division of Cargill Limited Contract Award Value (October 15, 2022 - April 15, 2025): $12,763,440 net of all applicable taxes and charges $14,422,687 including HST and all applicable charges $12,988,077 net of HST recoveries Contract is expected to start on October 15, 2022 and end on April 15, 2025. Option Year 1 - October 15, 2025 to April 15, 2026 $4,396,160 net of all applicable taxes and charges $4,967,661 including all applicable taxes and charges $4,473,532 net of HST recoveries Option Year 2 - October 15, 2026 to April 15, 2027 $4,471,400 net of all applicable taxes and charges $5,052,682 including all applicable taxes and charges $4,550,097 net of HST recoveries Grand Total Contract Award value (October 15, 2022 - April 15, 2027): $21,631,000 net of all applicable taxes and charges $24,443,030 including HST and all applicable charges $22,011,706 net of HST recoveries Recommended supplier: Section D - Toronto and East York District - Windsor Salt Ltd. Contract Award Value (October 15, 2022 - April 15, 2025): $18,747,897 net of all applicable taxes and charges $21,185,124 including HST and all applicable charges $19,077,860 net of HST recoveries Contract is expected to start on October 15, 2022 and end on April 15, 2025. Option Year 1 - October 15, 2025 to April 15, 2026 $6,794,161 net of all applicable taxes and charges $7,677,402 including all applicable taxes and charges $6,913,738 net of HST recoveries Option Year 2 - October 15, 2026 to April 15, 2027 $6,995,947 net of all applicable taxes and charges $7,905,420 including all applicable taxes and charges $7,119,076 net of HST recoveries Grand Total Contract Award value (October 15, 2022 - April 15, 2027): $32,538,005 net of all applicable taxes and charges $36,767,946 including HST and all applicable charges $33,110,674 net of HST recoveries The total potential contract award identified in this report for Sections A to D including option years is $108,996,803 net of applicable taxes and charges, and $123,166,387 including all applicable taxes and charges. The total potential cost to the City for Sections A to D including option years is $110,915,147 net of HST recoveries. The above cost calculations for the Option Year reflect an estimated annual 3 percent increase as per the Consumer Price Index.

On the agenda

As the city filed it

Solicitation Issued: June 14, 2022 Call Closed: June 30, 2022 Number of Addenda Issued: Four (4) Number of Bids: Three (3) Table 2: Summary of Bids Received including bid price. Section A: Etobicoke York District: Supplier Bid Price (excluding H.S.T.) Compass Minerals Canada Corp. $24,101,973* Cargill Salt, Road Safety, a division of Cargill Limited $24,232,435 Windsor Salt Ltd. $33,057,132 *Pursuant to the Request for Tender document, the contract award price includes contingency.

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Section B: North York District: Supplier Bid Price (excluding H.S.T.) Windsor Salt Ltd. $31,098,868* Compass Minerals Canada Corp. $35,904,661 Cargill Salt, Road Safety, a division of Cargill Limited $38,676,989 *Pursuant to the Request for Tender document, the contract award price includes contingency. Section C: Scarborough District: Supplier Bid Price (excluding H.S.T.) Cargill Salt, Road Safety, A Division of Cargill Limited $21,464,294* Compass Minerals Canada Corp. $27,691,509 Windsor Salt Ltd. $30,854,950 *Pursuant to the Request for Tender document, the contract award price includes contingency. Section D: Toronto and East York District: Supplier Bid Price (excluding H.S.T.) Windsor Salt Ltd. $33,731,136* Compass Minerals Canada Corp. $38,943,701 Cargill Salt, Road Safety, a division of Cargill Limited $42,797,970 *Pursuant to the Request for Tender document, the contract award price includes contingency.

Staff recommended

The Acting Chief Procurement Officer recommends that the Bid Award Panel, pursuant to Section 195-8.3A(3) of the Municipal Code, Chapter 195, Purchasing, exercise the power of a Standing Committee to grant authority to award the following contract: Solicitation Number: Request for Quotation, Ariba Document Number 3528658110, Contract Number 22TR-OM-003-AA-WE Description: Supply, Delivery and Unloading of Bulk, Crushed,

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Coarse, Common Rock Salt as and when required for a Three (3) Year Term Commencing 2022 - 2023 Winter Season for Etobicoke York, North York, Scarborough and Toronto and East York districts for the various City of Toronto divisions and other Agencies, Boards and Commissions, with an option in favour of the City to extend the agreement on the same terms and conditions for an additional term of up to two (2) additional separate one (1) year periods. Should the option(s) be exercised, then the General Manager of Transportation Services Division will request the Acting Chief Procurement Officer to process the renewals under the same terms and conditions. Total Contract Award Value (October 15, 2022 - April 15, 2025) (Sections A, B, C, D see breakdown below per recommended supplier): $108,996,803 net of all applicable taxes and charges $123,166,387 including HST and all applicable charges $110,915,147 net of HST recoveries Recommended Supplier: Section A - Etobicoke York District - Compass Minerals Canada Corp Contract Award value (October 15, 2022 - April 15, 2025): $14,188,455 net of all applicable taxes and charges $16,032,954 including HST and all applicable charges $14,438,172 net of HST recoveries Contract is expected to start on October 15, 2022 and end on April 15, 2025. Option Year 1 - October 15, 2025 to April 15, 2026 $5,009,994 net of all applicable taxes and charges $5,661,293 including all applicable taxes and charges $5,098,170 net of HST recoveries Option Year 2 - October 15, 2026 to April 15, 2027 $5,157,446 net of all applicable taxes and charges $5,827,914 including all applicable taxes and charges $5,248,217 net of HST recoveries Grand Total Contract Award value (October 15, 2022 - April 15, 2027): $24,355,895 net of all applicable taxes and charges $27,522,161 including HST and all applicable charges $24,784,559 net of HST recoveries Recommended Supplier: Section B - North York District - Windsor Salt Ltd. Contract Award Value (October 15, 2022 - April 15, 2025): $17,558,209 net of all applicable taxes and charges $19,840,776 including HST and all applicable charges $17,867,233 net of HST recoveries Contract is expected to start on October 15, 2022 and end on April 15, 2025. Option Year 1 - October 15, 2025 to April 15, 2026 $6,362,461 net of all applicable taxes and charges $7,189,580 including all applicable taxes and charges $6,474,440 net of HST recoveries Option Year 2 - October 15, 2026 to April 15, 2027 $6,551,234 net of all applicable taxes and charges $7,402,894 including all applicable taxes and charges $6,666,535 net of HST recoveries Grand Total Contract Award value (October 15, 2022 - April 15, 2027): $30,471,903 net of all applicable taxes and charges $34,433,250 including HST and all applicable charges $31,008,208 net of HST recoveries Recommended supplier: Section C - Scarborough District - Cargill Salt, Road Safety, a Division of Cargill Limited Contract Award Value (October 15, 2022 - April 15, 2025): $12,763,440 net of all applicable taxes and charges $14,422,687 including HST and all applicable charges $12,988,077 net of HST recoveries Contract is expected to start on October 15, 2022 and end on April 15, 2025. Option Year 1 - October 15, 2025 to April 15, 2026 $4,396,160 net of all applicable taxes and charges $4,967,661 including all applicable taxes and charges $4,473,532 net of HST recoveries Option Year 2 - October 15, 2026 to April 15, 2027 $4,471,400 net of all applicable taxes and charges $5,052,682 including all applicable taxes and charges $4,550,097 net of HST recoveries Grand Total Contract Award value (October 15, 2022 - April 15, 2027): $21,631,000 net of all applicable taxes and charges $24,443,030 including HST and all applicable charges $22,011,706 net of HST recoveries Recommended supplier: Section D - Toronto and East York District - Windsor Salt Ltd. Contract Award Value (October 15, 2022 - April 15, 2025): $18,747,897 net of all applicable taxes and charges $21,185,124 including HST and all applicable charges $19,077,860 net of HST recoveries Contract is expected to start on October 15, 2022 and end on April 15, 2025. Option Year 1 - October 15, 2025 to April 15, 2026 $6,794,161 net of all applicable taxes and charges $7,677,402 including all applicable taxes and charges $6,913,738 net of HST recoveries Option Year 2 - October 15, 2026 to April 15, 2027 $6,995,947 net of all applicable taxes and charges $7,905,420 including all applicable taxes and charges $7,119,076 net of HST recoveries Grand Total Contract Award value (October 15, 2022 - April 15, 2027): $32,538,005 net of all applicable taxes and charges $36,767,946 including HST and all applicable charges $33,110,674 net of HST recoveries The total potential contract award identified in this report for Sections A to D including option years is $108,996,803 net of applicable taxes and charges, and $123,166,387 including all applicable taxes and charges. The total potential cost to the City for Sections A to D including option years is $110,915,147 net of HST recoveries. The above cost calculations for the Option Year reflect an estimated annual 3 percent increase as per the Consumer Price Index.

On the record

The item as the City filed it