2. SOLID WASTE CURBSIDE COLLECTION AND SERVICES (TENDER
RFT01811-91027-T01)
COLLECTE DE DÉCHETS SOLIDES EN BORDURE DU CHEMIN ET
SERVICES (APPEL D’OFFRES NO
RFT01811-91027-T01)
COMMITTEE RECOMMENDATIONS
That Council approve the following:
1. Award of Zone C1 Solid Waste Curbside Collection and Services
Contract No. 01811-91027-T01 to Waste Management (Waterloo, ON) for first year
total costs of $6,158,562 (HST not included), subject to annual CPI and growth increases
as determined by the contract;
2. Award of Zone C2 Solid Waste Curbside Collection and Services
Contract No. 01811-91027-T01 to Miller Waste Systems Inc. (Markham, ON) for first
year total cost of $5,998,030 (HST not included), subject to annual CPI and
growth increases as determined by the contract;
3. That Form of Tender, Basis of award Section 16.3 of
the SOLID WASTE CURBSIDE COLLECTION AND SERVICES tender (RFT #01811-91027-T01)
be exercised and award of Zone C4 Solid Waste Curbside Collection and Services
Contract No. 01811-91027-T01 to the second lowest bidder, Miller Waste Systems
Inc. (Markham, ON), for first year total costs of $5,548,628 (HST not included),
subject to annual CPI and growth increases as determined by the contract;
4. Award of Zone C5 Solid Waste Curbside Collection and Services
Contract No. 01811-91027-T01 to the City Of Ottawa In-House Group (City of
Ottawa, ON) for first year total cost of $5,807,713, which includes the
establishment of an additional 39 positions (temporary for the term of
contract), subject to annual CPI and growth increases as determined in the
contract;
5. Establishment of the annual budget for the
City of Ottawa In-House Group, which was awarded the Curbside Collection Zone
C3 at the August 25, 2011 Council meeting, based on all terms, conditions and
assumptions used to calculate the In-House bids for other zones for the Solid Waste
Curbside Collection and Services Contract No. 01811-91027-T01, which results in Zone 3 first year costs of
$5,508,731, which includes the establishment of an additional of 7 positions
(temporary for the term of the contract), subject to annual CPI and growth
increases as determined in the contract;
6. An increase to the 2012 Capital Budget Authority in project
906332 Solid Waste Fleet Replacement by the amount of $3.5M for a total
authority of $3.795M, for the acquisition of 13 new collection vehicles to be
funded from the Solid Waste Capital Reserve Fund to be repaid by the Fleet
Replacement Reserve Fund, causing no tax pressure in 2012;
7. Delegation of authority to General Manager, Public Works to
enter into a purchase or lease agreement, whichever is the most cost efficient,
for the Fleet requirements for Zone 5 vehicles, subject to the City Treasurer
review and approval; and
8. Requirement for an annual audit of
expenditures for works awarded to the City and an annual information report,
qualitative and quantitative in nature, relevant to this program and subject to
the normal committee process.
RecommandationS du comitÉ
Que le Conseil approuve les recommandations suivantes :
1. accorde le contrat no
01811-91027-T01 pour la collecte des déchets solides en bordure de rue dans la
zone C1 et les services connexes à Waste Management (Waterloo, Ontario) pour la
première année, pour un coût total de 6 158 562 $ (TVH non incluse), sous
réserve de l’augmentation annuelle de l’IPC et des taux de croissance, tel
qu’établi par contrat;
2. accorde le contrat no
01811-91027-T01 pour la collecte des déchets solides en bordure de rue dans la
zone C2 et les services connexes à Miller Waste Systems Inc. (Markham, Ontario)
pour la première année, pour un coût total de 5 998 030 $ (TVH
non incluse), sous réserve de l’augmentation annuelle de l’IPC et des taux de
croissance, tel qu’établi par contrat;
3. que la section 16.3 concernant les
critères d’octroi du contrat du formulaire de l’APPEL D’OFFRES CONCERNANT LA
COLLECTE DES DÉCHETS SOLIDES EN BORDURE DE RUE ET LES SERVICES CONNEXES (RFT no
01811- 91027-T01) soit mise en œuvre et que le contrat pour la collecte des
déchets solides en bordure de rue (RFT no 01811- 91027-T01) soit
adjugé au deuxième soumissionnaire dans la zone C4, qui est Miller Waste
Systems Inc. (Markham, Ontario), pour la première année et pour un coût total
de 5 548 628 $ (TVH non incluse), sous réserve de
l’augmentation annuelle de l’IPC et des taux de croissance, tel qu’établi par
contrat;
4. accorde le contrat no
01811-91027-T01 pour la collecte des déchets solides en bordure de rue dans la
zone C5 et les services connexes au groupe interne de la Ville d’Ottawa (Ville
d’Ottawa, Ontario) pour la première année, au coût total de
5 807 713 $, qui comprend l’établissement de 39postes
temporaires, sous réserve de l’augmentation annuelle de l’IPC et des taux de
croissance, tel qu’établi par contrat;
5. établisse le budget annuel pour le
groupe interne de collecte des déchets de la Ville d’Ottawa auquel le conseil
municipal a confié le contrat de collecte des déchets en bordure de rue dans la
zone C3, à sa réunion du 25 août 2011, en fonction des conditions, modalités et
hypothèses utilisées pour calculer les soumissions du groupe interne pour
d’autres zones de collecte des déchets solides en bordure de rue et services
connexes, contrat no 01811-91027-T01, dont les coûts pour la zone 3 pour la
première année sont estimés à 5 508 731 $, ce qui comprend
l’établissement de 7 postes temporaires supplémentaires, sous réserve de
l’augmentation annuelle de l’IPC et des taux de croissance, tel qu’établi par
contrat;
6. d’augmenter le budget d’immobilisations
autorisé de 2012 de 3,5 M$ pour le projet 906332 pour le remplacement du
parc de véhicules de collecte des déchets solides, pour un budget total
autorisé de 3,795 M$, pour l’acquisition de 13 nouveaux véhicules de
collecte des déchets, qui sera financée par le Fonds de réserve des
immobilisations pour la collecte des déchets solides, mais qui sera remboursée
par le Fonds de réserve pour le remplacement du parc de véhicules, sans aucune
pression sur les taxes en 2012;
7. de déléguer l’autorité au Directeur
général, Service des travaux publics, pour qu’il conclu une entente d’achat ou
de location, selon le scénario celui qui est le plus avantageux pour la Ville,
pour combler les besoins en véhicules pour la Zone 5, sous réserve de
l’examen et de l’approbation de la trésorière.
8. d’exiger une vérification annuelle des dépenses pour les travaux dont le
contrat a été octroyé à la Ville ainsi qu’un rapport annuel d’information
qualitative et quantitative par nature, pertinent au programme et assujetti au
processus normal des comités.
DOCUMENTATION :
1.
Deputy City Manager, Infrastructure Services and
Community Sustainability report dated 15 November 2011 (ACS2011-ICS-ESD-0040);
2. Extract of Draft Minute 15 November
2011, follows the French Report.
Report to/Rapport au :
Environment Committee
Comité de l’environnement
and Council / et le Conseil
15 November 2011 / le 15 novembre 2011
Nancy Schepers, Deputy City Manager / Directrice
municipale adjointe
Infrastructure Services and Community Sustainability /
Services d
'infrastructure et Viabilité des collectivités
Contact Person/Personne ressource :
Marilyn Journeaux, Manager, Solid Waste
Services /
Gestionnaire du service des déchets solides
(613) 580-2424 x21528, marilyn.journeaux@ottawa.ca
|
SUBJECT: |
SOLID
WASTE CURBSIDE COLLECTION AND SERVICES (TENDER RFT01811-91027-T01) |
|
OBJET : |
COLLECTE DE DÉCHETS SOLIDES
EN BORDURE DU CHEMIN ET SERVICES (APPEL D’OFFRES NO RFT01811-91027-T01) |
REPORT RECOMMENDATIONS
That the Environment
Committee recommend that Council approve:
1. Award
of Zone C1 Solid Waste Curbside Collection and Services Contract No. 01811-91027-T01
to Waste Management (Waterloo, ON) for first year total costs of $6,158,562 (HST
not included), subject to annual CPI and growth increases as determined by the
contract;
2. Award of Zone C2 Solid
Waste Curbside Collection and Services Contract No. 01811-91027-T01 to Miller
Waste Systems Inc. (Markham, ON) for first year total cost of $5,998,030 (HST
not included), subject to annual CPI and growth increases as determined by the
contract;
3. That Form of
Tender, Basis of award Section 16.3 of the SOLID WASTE CURBSIDE COLLECTION AND
SERVICES tender (RFT #01811-91027-T01) be exercised and award of Zone C4 Solid
Waste Curbside Collection and Services Contract No. 01811-91027-T01 to the second
lowest bidder, Miller Waste Systems Inc. (Markham, ON), for first year total costs
of $5,548,628 (HST not included), subject to annual CPI and growth increases as
determined by the contract;
4. Award
of Zone C5 Solid Waste Curbside Collection and Services Contract No. 01811-91027-T01
to the City Of Ottawa In-House Group (City of Ottawa, ON) for first year total cost
of $5,807,713, which includes the establishment of an additional 39 positions
(temporary for the term of contract), subject to annual CPI and growth
increases as determined in the contract;
5. Establishment of the annual budget for the
City of Ottawa In-House Group, which was awarded the Curbside Collection Zone
C3 at the August 25, 2011 Council meeting, based on all terms, conditions and
assumptions used to calculate the In-House bids for other zones for the Solid Waste
Curbside Collection and Services Contract No. 01811-91027-T01, which results in Zone 3 first year costs of
$5,508,731, which includes the establishment of an additional of 7 positions
(temporary for the term of the contract), subject to annual CPI and growth
increases as determined in the contract;
6. An increase to the 2012 Capital Budget Authority in project 906332
Solid Waste Fleet Replacement by the amount of $3.5M for a total authority of $3.795M,
for the acquisition of 13 new collection vehicles to be funded from the Solid Waste
Capital Reserve Fund to be repaid by the Fleet Replacement Reserve Fund,
causing no tax pressure in 2012;
7. Delegation
of authority to General Manager, Public Works to enter into a purchase or lease
agreement, whichever is the most cost efficient, for the Fleet requirements for
Zone 5 vehicles, subject to the City Treasurer review and approval; and
8. Requirement for an annual audit of
expenditures for works awarded to the City and an annual information report,
qualitative and quantitative in nature, relevant to this program and subject to
the normal committee process.
RecommandationS
du rapport
Le Comité de
l’environnement recommande :
1. que
le Conseil accorde le contrat no 01811-91027-T01 pour la collecte
des déchets solides en bordure de rue dans la zone C1 et les services connexes
à Waste Management (Waterloo, Ontario) pour la première année, pour un coût
total de 6 158 562 $ (TVH non incluse), sous réserve de l’augmentation
annuelle de l’IPC et des taux de croissance, tel qu’établi par contrat;
2. que
le Conseil accorde le contrat no 01811-91027-T01 pour la collecte
des déchets solides en bordure de rue dans la zone C2 et les services connexes
à Miller Waste Systems Inc. (Markham, Ontario) pour la première année, pour un
coût total de 5 998 030 $ (TVH non incluse), sous réserve de
l’augmentation annuelle de l’IPC et des taux de croissance, tel qu’établi par
contrat;
3. que
la section 16.3 concernant les critères d’octroi du contrat du formulaire
de l’APPEL D’OFFRES CONCERNANT LA COLLECTE DES DÉCHETS SOLIDES EN BORDURE DE
RUE ET LES SERVICES CONNEXES (RFT no 01811- 91027-T01) soit mise en
œuvre et que le contrat pour la collecte des déchets solides en bordure de rue
(RFT no 01811- 91027-T01) soit adjugé au deuxième soumissionnaire
dans la zone C4, qui est Miller Waste Systems Inc. (Markham, Ontario), pour la
première année et pour un coût total de 5 548 628 $
(TVH non incluse), sous réserve de l’augmentation annuelle de l’IPC et des taux
de croissance, tel qu’établi par contrat;
4. que
le Conseil accorde le contrat no 01811-91027-T01 pour la collecte
des déchets solides en bordure de rue dans la zone C5 et les services connexes
au groupe interne de la Ville d’Ottawa (Ville d’Ottawa, Ontario) pour la
première année, au coût total de 5 807 713 $, qui comprend
l’établissement de 39postes temporaires, sous réserve de l’augmentation
annuelle de l’IPC et des taux de croissance, tel qu’établi par contrat;
5. que le Conseil établisse le budget
annuel pour le groupe interne de collecte des déchets de la Ville d’Ottawa
auquel le conseil municipal a confié le contrat de collecte des déchets en
bordure de rue dans la zone C3, à sa réunion du 25 août 2011, en fonction des
conditions, modalités et hypothèses utilisées pour calculer les soumissions du
groupe interne pour d’autres zones de collecte des déchets solides en bordure
de rue et services connexes, contrat no 01811-91027-T01, dont les coûts pour la zone 3 pour la
première année sont estimés à 5 508 731 $, ce qui comprend
l’établissement de 7 postes temporaires supplémentaires, sous réserve de
l’augmentation annuelle de l’IPC et des taux de croissance, tel qu’établi par
contrat;
6. d’augmenter le budget d’immobilisations
autorisé de 2012 de 3,5 M$ pour le projet 906332 pour le remplacement du
parc de véhicules de collecte des déchets solides, pour un budget total
autorisé de 3,795 M$, pour l’acquisition de 13 nouveaux véhicules de
collecte des déchets, qui sera financée par le Fonds de réserve des
immobilisations pour la collecte des déchets solides, mais qui sera remboursée
par le Fonds de réserve pour le remplacement du parc de véhicules, sans aucune
pression sur les taxes en 2012;
7. de déléguer l’autorité au Directeur
général, Service des travaux publics, pour qu’il conclu une entente d’achat ou
de location, selon le scénario celui qui est le plus avantageux pour la Ville,
pour combler les besoins en véhicules pour la Zone 5, sous réserve de
l’examen et de l’approbation de la trésorière.
8. d’exiger une vérification annuelle des dépenses pour les travaux dont le
contrat a été octroyé à la Ville ainsi qu’un rapport annuel d’information
qualitative et quantitative par nature, pertinent au programme et assujetti au
processus normal des comités.
Background
The current residential solid waste
collection contract (No. 02105-91027-T02) will expire on October 29, 2012, requiring
new service contracts. Service levels for the new contract were approved by
Council at the April 13, 2011 Council meeting. The service levels were
based on recommendations by staff set out in the Service Level Review
Report and approved by Council.
At the August 25th Council meeting, Council approved the
award of Zone 3 to the In-House Collection Group for the term of the next
collection contracts.
The tender for Solid Waste Curbside
Collection and Services (RFT# 01811-91027-T01) was issued by Supply Branch on September 17, 2011, advertised on MERX
and closed on October 20, 2011. The
tender document reflects the service levels approved by Council at the April
2011 Council meeting.
The award of this contract in November 2011
is critical to ensure that all contractors have sufficient time to purchase and
receive collection vehicles and have staff in place in time for the start up of
the residential waste curb-side collection service contracts in October of 2012.
DISCUSSION
Solid Waste
Residential Curbside Tender Details
The curbside tender
provides for five (5) geographic collection zones with approximately the same
number of households. Due to residential growth in the current curbside zones, some
boundary changes were required to balance the zone sizes and to take into
account natural geographic barriers.
The new zone boundaries
for the collection contracts can be found in Figure 1.
Fig. 1 – Collection
Zone Map
All collection
services (garbage, recycling, organics, and leaf and yard waste) in each zone
are to be provided by the same successful bidder.
The tender reflected
the service level changes approved by Council on April 13, 2011 Council report ACS2011-ICS-ESD-0002.
The approved service levels included:
- Bi-Weekly collection of residential
garbage;
- Weekly collection of organics;
- Alternating weekly collection of
recyclables. (blue box one week and black box the following week); and
- Organics
and recyclables to be collected with the same vehicle in separated
compartments.
Managed Competition Process
On August 25, 2011, Council approved that Zone 3 (downtown core) be
awarded to the In-house Group for the next term of the collection
contract. Council also directed staff to
form an In-house Bid Team to prepare a bid for Collection Zones 1, 2, 4 and 5
for the upcoming contracts through a managed competition process. (Solid Waste
Services-Collection Contracts: In-house Bid Authority-Managed Competition,
ACS2011-ICS-ESD-0045).
PPI Consulting Limited, an independent consulting company, was
retained as the Fairness Commissioner for this solid waste collection
tender. The Fairness Commissioner was
involved in all aspects of this tender process including overseeing that the
In-house Bid “Managed Competition Protocols” were followed ensuring a
transparent, open and fair procurement process.
The City created a separate In-house Bid Team to prepare the City
bid. In addition, the city created a
separate Evaluation Team to evaluate all of the contractor and In-house
bids. The Fairness Commissioner
monitored the evaluation process and the In-house bid preparation process to
ensure a fair and competitive process. The
Fairness Commissioner has provided the City with a written report, attached as
Document 1, certifying that the tendering process was undertaken in a fair,
open and transparent manner.
Tender Results
The tender basis of
award was per zone. As shown in Figure 2, a total of seven (7) bidders
submitted tenders in response to the RFT, including the City of Ottawa In-house
bid team. Results of the bid opening are provided in
Figure 3.
Figure 2: Proponents Submitting Tenders
|
Proponents |
Price Schedule Submitted |
||
|
GFL Environmental East Corp. (Pickering, On) |
Zone
C1, Zone C2, Zone C4 and Zone C5 |
||
(Gatineau, QC) |
Zone C4
and Zone C5 |
||
(Waterloo, On) |
Zone
C1, Zone C2, Zone C4 and Zone C5 |
||
|
Zone
C1, Zone C2, Zone C4 and Zone C5 |
||
(Ottawa, On) |
Zone
C1, Zone C2, Zone C4 and Zone C5 |
||
|
Zone
C1, Zone C2, Zone C4 and Zone C5 |
||
|
City of Ottawa In-House Bid Team (City of Ottawa) |
Zone
C1, Zone C2, Zone C4 and Zone C5 |
Figure 3: Finance Department (Solid Waste Curbside Collection and Services Tender (TENDER RFT01811-97027-T01) Opening Report).
Staff recommend that the
lowest responsive bid for zones 1, 2 and 5 be awarded a contract for these
zones. However, Staff recommend that
Zone 4 be awarded to the second lowest responsive bid as submitted by Miller
Waste Systems Inc. of Markham, ON.
The ability to award Zone 4 to the second lowest bidder is expressly set
out in the Section 16.3 of the Solid Waste Curbside
Collection and Services tender (RFT #01811-91027-T01).
Form of Tender,
Basis of award Section 16.3 of the SOLID WASTE CURBSIDE COLLECTION AND SERVICES states the
following;
16.3 The City may decide not to award all zones to the In-House bid team
for which they were the apparent low bid,
based on a number of reasons including, but not limited to the cost of
capital start-up, ability to meet timing
constraints, and the analysis of the full cost of providing the service
as defined in the “Guidelines for In-House Bid
Process”. For clarity, the City In-House bid team may not be recommended
to deliver the services for all zones for
which they appear to be the low bid.
This approach is being recommended for several
reasons:
·
It would be
difficult to get vehicles and fully trained staff in place in time to start
collection in the existing Zone 3 and two additional zones by next November.
·
Significant
staff resources will be required during the fall of 2012 to ensure that current
contractors continue to meet service obligations until the end of the contract
while at the same time transitioning to new waste collection contractors. At
the same time, the new service levels will be implemented requiring City
monitoring.
·
The second
low bid, Miller Waste Inc., has demonstrated that they have the experience and
capacity to deliver the service for the required zones. They are currently
under contract with various municipalities of similar size and nature,
including the Halton Region, Town of Markham, Town of Richmond Hill, City of Vaughan, Ajax/Pickering and the
Region of Durham. These contracts service over 407,000 households. Miller Waste Systems also provides collection
service to the Industrial, Commercial and Institutional sector. Miller Waste Systems operates over 450 waste
collection vehicles and has over 850 personnel.
·
The
difference between the lowest bid by the In-house Group and the second lowest
bid by Miller Waste Systems is $102,832.42.
·
The
risk-mitigation benefits of awarding the contact to Miller outweigh the added
cost of the Miller bid for Zone Four.
Therefore, in accordance
with the Basis of award Section 16.3 of
the tender, staff is recommending the award of contract for Zone 4 be made
to the second lowest bidder.
Staff also recommends that In-House Zone 3 awarded by Council on August 25,
2011 be required to abide to all terms and condition of the Solid Waste
Curbside Collection and Services contract and that a price schedule be
submitted based on the same assumptions and analysis used for the bid pricing
for Zone 1, 2, 4 and 5.
The changes to the boundaries in the five collection zones, has resulted
in an increase in the number of households for the new Zone 3 from approx 45,000
to 55,000. As a result, an increase of an additional 7.33 positions (temporary
over the term of the contract) will be required over and above the current
budget. These funds will be required at the start of November 2012.
Service Level Cost Savings
The April 13, 2011
Council report ACS2011-ICS-ESD-0002 identified possible savings of $9M per year
over the status quo by moving to the recommended service levels. These cost
avoidance savings will be achieved through approval of the recommendations
contained in this report In fact, an additional savings
of $1.14M beyond what was identified in the service level review has been
realized as a result of the tendering process for an overall annual savings of
$10.14M over status quo.
RURAL IMPLICATIONS
All
rural resident receiving curbside collection will have the same level of
service as urban and suburban residents.
CONSULTATION
No public consultation was required.
Comments by the Ward Councillor(s)
This is a city-wide report.
LEGAL
IMPLICATIONS
There are no legal impediments
to implementing any of recommendations of this report.
The award of this contract in November 2011 is
critical to ensuring the contractors have sufficient time to purchase and
receive collection vehicles in time for the start-up of the contracts in
October of 2012. The acquisition of waste collection vehicles can take up to
one year. It is vital that the In-house Collection Group and the contractors
receive enough time to acquire the required collection vehicles. Any delay in
awarding these contracts may result in late delivery of collection vehicles
which would result in an interruption collection of all waste streams.
FINANCIAL IMPLICATIONS
Approval of the
recommended contract awards represents a pre-commitment against future
Operating Budgets.
There is no net
impact on the 2012 Draft Operating Budget for Solid Waste Services as tabled on
October 26, since the 2012 requirements are sufficient to meet the requirements
of the new contracts. However, the 2012
operating budget will need to be realigned to reflect a decrease in contracted
services costs and an increase to compensation costs and fleet costs related to
the additional zone awarded to the City In-house Operations. These realigned costs
will be for a part-year in 2012 and will be annualized in 2013.
The recommended
contract awards provide for an additional $1.1M over the $9.0 estimated savings
per the service level review report. The
2012 draft operating budget has already incorporated $1.0M in part year savings
based on these initial service level review estimates. A full year savings will be identified and included
in the 2013 Draft Operating Budget for Solid Waste Services. Last, it should be noted that the tendered
results have varied by component and as such the estimated savings will be
apportioned differently between rate (per household curbside fee) and tax.
Environmental Implications
The Service Level review report identified the
following environmental implications
- The recommended
system will move the City from the current 44 per cent curbside
residential waste diversion to between 48 per cent and 53 per cent;
- The switch to bi-weekly residual waste collection will
divert between 10,300 to 20,100 additional tonnes per year of organic
material from the Trail Road landfill;
- Experience from a
number of other municipalities indicates that the implementation of
bi-weekly residual waste collection increased the tonnages of Blue and
Black box material collected, estimated between 1,600 to 5,200 per year; and
- A reduction in the
number of trucks needed to collect residential waste will reduce air
pollutant emissions.
Technology
Implications
There are no technical implications to implementing the recommendations in this report.
STRATEGIC
PRIORITIES
Financial Responsibility – FS2 – Maintain and enhance the City’s financial position
Tender No. 01811-91027-T01 Solid
Waste Curbside Collection and Services Contract reflects service
level changes approved by Council on April 13, 2011, report
ACS2011-ICS-ESD-0002. The recommendations
outlined in this report represents significant financial savings to the City,
as outlined in this report.
Environmental Stewardship, ES3 – Reduce Environmental Impact
·
Strategic
Initiative #30 – Implementation of new Solid Waste Service Levels
(2012-2018)
Council approved the
implementation of System D of the Solid Waste Collection Service Level
Review report on
April 13, 2011 (Ref N°: ACS2011-ICS-ESD-0002). The Collection contracts
reflected the service levels identified in that report. Awarding these
contracts will aid the City in achieving the following City policies and
objectives:
·
Optimize current and
future residential solid waste programs to meet environmental and
sustainability needs;
·
Commit to reducing the
community’s impact on the environment by developing and encouraging
participation in innovative recycling programs;
·
Charter a course for
municipal solid waste management and set achievable targets for diverting waste
and recyclable materials from landfills to extend the life of its landfill
assets; and
·
Increase waste diversion.
The City is making an effort to change the way it thinks about waste. The Waste
Management Strategy helps the City to manage waste effectively, prevent
pollution, promote recycling and reuse of materials, and reach its
environmental goals. The City is also looking into how new and emerging
technologies can help to turn residual waste into a resource.
SUPPORTING
DOCUMENTATION
Document 1 – PPI Consulting Limited (Fairness Commissioner Report).
DISPOSITION
The Solid Waste
Curbside Collection and Services Contract No. 01811-91027-T01 will be award as
outlined in this report.
Environment Services staff will implement Council’s instruction outlined in this report for In-House collection contracts for Zone C3 and C5.
Environmental Services Department will submit to Committee yearly financial reports reviewed by an independent auditor for collection Zone C3 and C5.
DOCUMENT 1
86 Centrepointe Drive
Ottawa, Ontario
K2G 6B1
Tel: 613-567-0000
Fax: 613-274-7015
www.ppiprocurementconsulting.com
Ottawa | Toronto | Atlantic Canada
November 4, 2011
City of
Ottawa, Request for Tender # 01811-91027-T01 for: The Procurement of
Residential Curbside Collection Services
Introduction
PPI Consulting
Limited (PPI) was engaged by the City of Ottawa to provide independent
oversight throughout its procurement process to select Suppliers for
residential curbside collection services (RFT# 01811-910279-T01). PPI
participated in the validation of the procurement process, all mandatory
submission requirements, and provided oversight during the evaluation of the tenders.
According to the
City’s guidelines the following chart summarizes our involvement and findings:
|
Stage |
Task |
Fair
(Yes/No) |
|
1 |
Review of the
Request for Tender (RFT) documentation |
Yes |
|
2 |
Review draft
Q&A responses |
Yes |
|
3 |
Review draft
addenda before being published |
Yes |
|
4 |
Evaluator
orientation: Confirm conflict of interest forms have been completed by all
participants in the process |
Yes |
|
5 |
Validate mandatory
submission requirements of tenders |
Yes |
|
6 |
Confirm compliance
with mandatory requirements |
Yes |
|
7 |
Confirm appropriate
evaluation of bids and compliance with City’s Guidelines for the In-House Bid
Process |
Yes |
|
8 |
Review final
evaluation results |
Yes |
Observations and Findings
The
City of Ottawa managed the tendering process. The City of Ottawa prepared the
draft and final RFT documentation, addenda, responded to proponent questions,
and consulted with PPI as Fairness Commissioner for all potential and actual
fairness issues.
Seven
(7) bidders submitted Tenders in response to the RFT, including the City of
Ottawa In-House bid team. This was sufficient for a competitive procurement
process to take place. The entire evaluation team declared no conflict of
interest with any Bidders. Appropriate firewalls with respect to people and
access to information were established between the City’s evaluation team and
the City’s In-House bid team.
All
Proponents provided the mandatory submission requirements as per the RFT. These
requirements were a bid deposit of $150,000.00, a letter from the Proponent’s
surety/bonding company, a letter from the Proponent’s bank or financial
institution, a letter signed by the Proponent’s insurance agent/broker, a
letter disclosing the Proponent’s parent company, a letter with details of
their company experience, and the pricing submission forms.
All
submitted tenders were publically opened and preliminary pricing information
read out in the Supply Management Division following the close of the RFT. All
documentation was then subject to a review to confirm mathematical accuracy,
compliance with the specifications and compliance with the terms and conditions
of the contract
There
were no unresolved issues at any stage of this procurement.
The
highest ranked bidders were selected based on meeting the mandatory submission
requirements and bidding the lowest cost to provide the services to the City of
Ottawa. The City elected to invoke its right in Section 16.3 of the RFT to not
award Zone 4 to the in-house bid team. This was deemed necessary because the
City was concerned about the degree of risk in meeting its obligations in Zone
4 stemming from the overall change in the scope of work and the requirement to
provide services in Zone 3 (which was not in the competition, but for which the
new scope of work applies) and in Zone 5 (for which the City was the highest
ranked bidder). This risk was considered in relation to the bid price
differential between the in-house bid and the second highest ranked bidder in
Zone 4. For this reason, the City selected the second highest ranked bidder as
the preferred bidder for Zone 4.
Conclusion
As the
Fairness Commissioner for RFT # 01811-910279-T01 – The Procurement of
Residential Curbside Collection Services, we certify that the principles of
openness, fairness, consistency and transparency have been, in our opinion,
properly established and maintained throughout all the stages of the
procurement process. Furthermore, we were not made aware of any issues that
emerged during the process that would impair the fairness of this initiative.
Ben Sorensen
Director, PPI
Consulting
613.567.0000