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Home My WebLink AboutENG 16-21Report to Council Report Number: ENG 16-21 Date: June 28, 2021 From: Richard Holborn Director, Engineering Services Subject: School Crossing Guard Program - Quotation No. Q2021-7 - File: A-1440 Recommendation: 1. That Quotation No. Q2021-7 submitted by Neptune Security Services Inc. in the total amount of $1,423,800.00 (HST included) with a net project cost of $1,282,176.00 (net of HST rebate) be approved for the 3 year period from September 2021 to June 2024; and, 2. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: The current contract for the administration of the school crossing guard program will expire on June 30, 2021. Quotation No. Q2021-7 was issued on Wednesday, May 5, 2021 and closed on Thursday, May 27, 2021 with 4 bidders responding. The low bid submitted by Neptune Security Services Inc., in the amount of $1,423,800.00 (HST included), is recommended for approval. Please note that the total contract amount stated in Recommendation No.1 is for a full 3 year period should the City extend the contract on the same terms and conditions for up to 2 additional 1 year periods. In accordance with Section 06.11 of the Purchasing Policy, where the compliant quotation or tender meeting specifications and offering best value to the City is acceptable or where the highest scoring proposal is recommended and the estimated total purchase price is: (c) Over $250,000, the Manager may approve the award, subject to the approval of the Director, Treasurer, CAO and Council. Financial Implications: The annual cost for the provision of the school crossing guard program is provided for in account 2230.2399.0000. In the 2021 Current Budget, costs were included for the period of January 2021 to June 2021 based on the existing contract, and costs were estimated for the period of September 2021 to December 2021 for the new contract. Based on the bid received from Neptune Security Services Inc. which is recommended for approval, and due to school closures in the first half of the year caused by the COVID-19 pandemic, savings in the amount of $129,211.16 including net HST is estimated for 2021. ENG 16-21 June 28, 2021 Subject: School Crossing Guard Program Quotation No. Q2021-7 Page 2 1. Quotation Amount Quotation No. Q2021-7 Quotation Amount Year 1 2021/2022 $410,000.00 Option Year 2 2022/2023 $420,000.00 Option Year 3 2023/2024 $430,000.00 Total (3 years) $1,260,000.00 HST (13%) 163,800.00 Gross Quotation Amount $1,423,800.00 2. Total Project Cost Quotation No. Q2021-7 Quotation Amount (3 Years) $1,260,000.00 HST (13%) Gross Project Cost HST Rebate (11.24%) Net Project Cost 163,800.00 $1,423,800.00 (141,624.00) $1,282,176.00 3. Approved Source of Funds 2021 Current Budget (Year 1) Quotation No. Q2021-7 Account Code Budget Estimated Required Year 1 * 2230.2399.0000 $394,000.00 $264,788.84 The budget amount of $394,000.00 and the estimated required amount of $264,788.84 are both calculated using a blend of 6 months of costs from the prior year’s quotation, of which, the required amount is $97,902.44 net HST and 4 months from the new 2021 quotation which is estimated at $166,886.40 net HST included. The estimated required amount is lower than the budgeted amount due to school closures caused by the pandemic. Project Cost under (over) approved funds (Year 1) $129,211.16 Discussion: The City of Pickering currently contracts the placement of adult school crossing guards at 36 school crossing guard stations at various locations across the city (Attachment #1). The current contract for the supply and administration of school crossing guard services, Quotation No. Q-14-2018, will expire on June 30, 2021. The service provider, Neptune Security Services Inc., was awarded the contract for the 2018/2019 school year and was extended for the optional second (2019/2020) and third (2020/2021) school years. ENG 16-21 June 28, 2021 Subject: School Crossing Guard Program Quotation No. Q2021-7 Page 3 Quotation No. Q2021-7, School Crossing Guard Program, was issued on Wednesday, May 5, 2021 and closed on Thursday, May 27, 2021 with 4 bidders responding. The low bid in the amount of $1,423,800.00 (HST included) for 3 years, submitted by Neptune Security Services Inc., is recommended for approval. For this quotation, City staff stipulated a minimum hourly rate of pay for the crossing guards. The rate includes a 2 per cent increase per year from the existing rate, and is in line with what other municipalities in Durham Region are currently providing. The City’s Health & Safety Regulation form and current Certificate of Clearance issued by the Workplace Safety & Insurance Board has been submitted by Neptune Security Services Inc. The Certificate of Insurance has been reviewed by the Manager, Budgets & Internal Audit and is deemed acceptable. The following items submitted by Neptune Security Services Inc. have been reviewed and are deemed acceptable by the Manager, Capital Projects & Infrastructure: • provided references; • proposed contract implementation scheme; • policy/practice regarding absenteeism and vacations; and • policy/practice regarding training of both guard and supervisory staff. Quotation No. Q2021-7 maintains the current number of crossing guard stations and conditions of service for year 1, which is the 2021/2022 school year (September 2021 to June 2022). The term of this contract is to include 3 school years from September 2021 to June 2024 inclusive. Each subsequent school years’ service is subject to acceptable health and safety documentation and satisfactory performance evaluation of the prior years’ service. The City reserves the right not to extend to the subsequent school year, should the requested documentation set out in Appendix D – Request for Quotation Particulars, Material Disclosures, of the Quotation document not be acceptable and/or the performance evaluation not be acceptable, if in so doing the best interests of the City will be served. In conjunction with staff’s review of the contractor’s previous work experience, check of references submitted, and review of relevant documentation during the evaluation stage, the quotation is deemed acceptable. Upon careful examination of the quotation and relevant documents received, the Engineering Services Department recommends the acceptance of the low bid submitted by Neptune Security Services Inc. for Quotation No. Q2021-7 in the total amount of $1,423,800.00 (HST included) for the 3 year period from September 2021 to June 2024, and that the total net project cost of $1,282,176.00 (net of HST rebate) be approved. ENG 16-21 June 28, 2021 Subject: School Crossing Guard Program Quotation No. Q2021-7 Page 4 Attachments: 1.School Crossing Guard Program Location Map2.Supply and Services Memorandum dated May 27, 2021 Prepared By: Approved/Endorsed By: Original Signed By Original Signed By Scott Booker Richard Holborn, P.Eng. Manager, Capital Projects & Infrastructure Director, Engineering Services Original Signed By Original Signed By Nathan Emery Stan Karwowski, MBA, CPA, CMA Coordinator, Traffic Operations Director, Finance & Treasurer Original Signed By Ray Rodrigues, CPPB Manager, Supply & Services SB:NE:mjh Recommended for the consideration of Pickering City Council Original Signed By Marisa Carpino, M.A. Chief Administrative Officer Attachment #1 to Report #ENG 16-21 Memo Attachment #2 to Report #ENG 16-21 To: Richard Holborn Director, Engineering Services May 27, 2021 From: Ray Rodrigues Manager, Supply & Services Copy: Administrative Assistant, Engineering Services Manager, Capital Projects & Infrastructure Subject: Quotation No. Q2021-7 School Crossing Guard Services Closing: May 27, 2021 at 12:00 Noon. -File: F-5300-001 Quotation Q2021-7 was released on the City’s website on May 5, 2021. 4 Companies have responded by the closing date and time. There are 3 stages in the evaluation process which are outlined in Part 2 – Evaluation of Quotations of the Terms of Reference. Stage I determines which submissions satisfy all the mandatory submission requirements and provides Respondents the opportunity to rectify deficiencies. 4 quotations proceeded to Stage II, which consists of a review of the quotations to determine whether the mandatory technical requirements as set out in Section C of the Request for Quotation Particulars (Appendix D) have been met which have been met. 4 quotations proceeded to Stage III, which consists of an evaluation of the submitted pricing in accordance with the price evaluation method set out in the Pricing Form (Appendix C). Neptune Security Services Inc. is the top ranked Respondent with a submitted price of $1,260,000 (HST Excluded) for all three years of the contract term and $410,000 for the first year of the contract term. A budget of $600,000 was provided to Supply & Services for this procurement. In accordance with Appendix D – Request for Quotations Particulars, Item B: Material Disclosures, the following documents will be requested from Neptune Security Services Inc. a)contact information for the proposed Supervisory / Management staff;b)policy/practice regarding absenteeism and vacations;c)policy/practice regarding training of both guard and supervisory staff;d)certification of confirmation for Guard and Supervisory staff of current Police Record Check; e)certification of confirmation of Guard and Supervisory staff successful completion of the Company’s Guard training program;f)The City’s Health and Safety Form completed, currently dated and signed; and Quotation No. Q2021-7 Page 2 of 2 g)The City’s certificate of insurance or approved alternative form shall be completed by the bidder’s agent, broker or insurer. Please advise if Supply & Services is to proceed with this task. In accordance with Purchasing Policy Item 06.04, the authority for the dollar limit as set out below excludes HST. In accordance with Purchasing Policy, Item 06.11, where the compliant quotation or tender meeting specifications and offering best value to the City is acceptable or where the highest scoring proposal is recommended and the estimated total purchase price is: (c) Over $250,000, the Manager may approve the award, subject to the approval of theDirector, Treasurer, CAO and Council. Subject to receipt of approvals on the required docs above, please provide your recommendation in report form, as well as an on-line requisition. Please direct all enquiries to Supply & Services. Respondents will be advised of the outcome when the contract has been awarded. If you require further information, please contact myself or a member of Supply & Services. RR Attachments: (1)